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This methodology sets out how Integrum ESG measures the share of a company’s revenue that comes from products and services aligned with the UN Sustainable Development Goals. Alignment is assessed product line by product line against the 15 investable SDGs and their 138 investable targets, using a rules-based mapping of company revenue to the Sustainable Development Investments (SDI) taxonomy, so a result reflects what a company sells rather than what it says about the SDGs.
Framework
The SDGs and investable targets
The 17 Sustainable Development Goals set out in the UN 2030 Agenda for Sustainable Development target the world’s most pressing development challenges. Beneath them sit 169 targets that define the environmental and social outcomes of each goal. The goals were written for governments and multilateral bodies, and the sustainable investment community has since adapted them as a framework for impact investing.
The SDI Asset Owner Platform, a consortium of some of the world’s largest pension funds, created the Sustainable Development Investments (SDI) taxonomy to identify which goals are investable and to define the kinds of products and services aligned with each goal and target.
15 investable SDGs
SDGs 16 (Peace, Justice and Strong Institutions) and 17 (Partnerships for the Goals) fall outside the scope of business operations and are excluded.
138 investable targets
The targets beneath SDGs 1 to 15. Targets aimed at governments and policymakers rather than businesses, such as the means-of-implementation targets, are not matched to company revenue.
Target-level data lets a mandate be written against a specific target, not just a goal. Within SDG 6, for example, a water utility aligns with target 6.1, while a maker of water metering equipment aligns with target 6.4.
Method
How alignment is measured
- Tag the product lines Each of a company’s revenue-generating product lines is tagged with standardised functional identifiers, describing what the product does, how customers use it and the resources it relies on.
- Define each target as a query Each investable target is defined as a rules-based query on those identifiers, following the SDI taxonomy’s description of aligned products and services.
- Match product lines Product lines that meet a target’s query are aligned with that target and its SDG.
- Quantify the revenue The revenue from each aligned product line is attributed to the target and goal, giving the percentage of the company’s revenue aligned with each SDG.
Example queries for SDG 6
| Target | Companies aligned |
|---|---|
| 6.1 Safe and affordable drinking water | Companies that distribute water AND operate infrastructure, such as water network construction, public water utilities, irrigation, pipeline maintenance and desalination |
| 6.2 Sanitation and hygiene | Companies that maintain water (water treatment) OR produce hygiene products |
| 6.3 Water quality and wastewater treatment | Companies involved in wastewater treatment and water testing |
| 6.4 Water-use efficiency | Companies involved in water storage and in metering and other water-efficiency products |
Counting
Counting revenue across SDGs
Some product lines align with more than one SDG or target. Wastewater treatment, for example, aligns with both SDG 6.2 and SDG 9.1 (sustainable and resilient infrastructure). Individual SDG percentages are therefore not mutually exclusive and can add up to more than 100%.
When we total how much of a company is aligned with the SDGs, revenue from product lines aligned with several goals or targets is counted once. A company’s overall alignment can therefore never exceed 100%.
Worked example
Worked example: American Water Works
| Product line (FY 2025) | Share of revenue | Aligned with |
|---|---|---|
| Residential Water Utility | 54.14% | SDG 6.1 |
| Wastewater Treatment for Governments | 6.08% | SDG 6.2 and SDG 9.1 |
American Water Works’ Residential Water Utility product line operates water utility infrastructure, so it meets the SDG 6.1 query. Its other water utility lines, serving businesses, firefighting, industrial companies and the public, align with SDG 6.1 in the same way. Its wastewater treatment lines, for governments, businesses and industrial companies, align with both SDG 6.2 and SDG 9.1.
Overall, 100% of American Water Works’ FY 2025 revenue is aligned with at least one SDG. Some product lines align with more than one SDG, but because revenue is counted once, the company’s total alignment is 100%, not more.
Data
Data and evidence
Revenue segmentation is drawn from audited company filings, including 10-Ks, 20-Fs, 40-Fs, annual reports and sustainability reports. Classification uses Syntax’s Affinity™ data and Functional Information System (FIS®), licensed to Integrum ESG, and every alignment percentage links to the source excerpt and page reference behind it.
Because alignment is measured from the revenue a company reports, it rests on what the company sells rather than on its stated commitments to the SDGs. SDG Revenue Alignment is built from the same product-line revenue base as Controversial Activities, so positive and negative revenue exposure can be read side by side.
Related measures
How SDG Revenue Alignment relates to other measures
| Measure | What it measures |
|---|---|
| SDG Revenue Alignment | The share of revenue from products and services aligned with each SDG and target |
| Impact score | A company’s contribution to the SDGs through its operations, under the six themes of the Cambridge Impact Framework, set out in our SDG Impact from Operations Methodology |
| EU Taxonomy alignment | Substantial contribution to EU environmental objectives, no significant harm and minimum safeguards, set out in our EU Taxonomy Alignment Methodology |
Revenue aligned with an SDG is a measure of what a company sells. Whether an activity is also aligned with the EU Taxonomy depends on the Taxonomy’s own technical screening criteria, do no significant harm criteria and minimum safeguards.
FAQs
Frequently asked questions
What is SDG revenue alignment?
The share of a company’s revenue that comes from products and services aligned with the UN Sustainable Development Goals, measured product line by product line.
Which SDGs are covered?
The 15 investable SDGs and their 138 investable targets. SDGs 16 and 17 fall outside the scope of business operations and are excluded.
Why can SDG percentages add up to more than 100%?
Some product lines align with more than one SDG. Individual SDG percentages are not mutually exclusive, but a company’s total alignment counts each revenue stream once and never exceeds 100%.
Is SDG revenue alignment based on company commitments?
No. It is based on the revenue a company reports from each product line in its filings, not on its stated commitments to the SDGs.
How is SDG revenue alignment different from the Impact score?
SDG revenue alignment measures what a company sells. The Impact score measures its contribution to the SDGs through its operations, under the Cambridge Impact Framework, and is reported separately from the ESG score.
Does SDG alignment mean EU Taxonomy alignment?
No. EU Taxonomy alignment also depends on the Taxonomy’s technical screening criteria, do no significant harm criteria and minimum safeguards.
See the SDG revenue alignment of your holdings
Speak to our team to see how much of each holding’s revenue aligns with each SDG and target, with the filing behind every figure.