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Quantifying corporate societal impact using United Nations’ Sustainable Development Goals

This is the second in a series of Clarity AI and Qontigo research papers, it:

  • Focuses on the challenge of measuring impact as a key means of bridging the gap between impact investment theory and practice.
  • Identifies the United Nations’ Sustainable Development Goal (SDG) framework, which comprises 17 goals and 169 targets, as a way to structure company impact assessments.
  • Introduces and describes the approach developed by Clarity AI, which uses the SDGs to produce estimates of companies’ impact for each SDG goal plus an aggregated overall impact measure.
  • Summarizes the aggregate results obtained by taking this SDG approach to identify the SDGs with the greatest impact, the impact by sector and the SDGs overall.
  • Discusses the empirical relationships between the SDG impact measure and other metrics such as ESG performance and further company characteristics.