How do the Trends score on sustainability?

AtlasTrend's managed funds aims to make a greater positive contribution to the UN SDGs than the MSCI benchmark index.

Kent Kwan avatar
Written by Kent Kwan
Updated over a week ago

When selecting, retaining or realising the investments, AtlasTrend takes into account how it impacts the Trend’s overall contribution to the United Nations 17 Sustainable Development Goals (SDG) for a better world by 2030.

The target is for each of the Trends to have a better SDG contribution than the benchmark index being the MSCI World Net Total Return Index ex Australia (MSCI World Index) while aiming to deliver competitive returns.

What are the UN Sustainable Development Goals (SDGs)?

The SDG is a leading global framework officially adopted by 193 countries around the world with 17 goals including ending extreme poverty, fighting inequality and injustice and combating climate change.

How are SDG scores calculated?

Using an independent third party data provider, each Trend is measured for its aggregate SDG contribution.

This SDG contribution for an underlying investment is typically measured as the amount of revenue that each underlying company generates from goods and services they produce or sell that contribute to one or more of the SDGs plus any research and development spend towards the SDGs as a proportion of its total revenue.

This SDG contribution is aggregated for every underlying investment to arrive at a portfolio SDG contribution measurement for each of the Trends (SDG Score).

How is Carbon Risk calculated?

Another sustainability measure we access and monitor both on an individual investment and portfolio level is Carbon Risk. To do so we use an independent third party data provider’s metric ‘SP Carbon Risk’, a single metric used as a proxy for combined Scope 1, 2 & 3 reporting. It is calculated from fossil fuel exposure within a portfolio as a proportion of company revenue. Any emission offsets are taken into account using a USD 20 per tCO2 carbon price. SP Carbon Risk provides a single, quantitative way to compare any company against any other on carbon pollution, regardless of the industry that the company is in.

Sustainability Targets and Scores

AtlasTrend’s aim is for each Trend to achieve a higher SDG Score and lower Carbon Risk than the MSCI World Index. Both scores are calculated using independently assessed data from an independent third party data provider.

Want to learn more about the SDGs?

Learn more about the 17 UN Sustainable Development Goals here. All SDGs are interconnected, underpinned by 169 measurable targets, and act as a roadmap for transitioning to a better, more sustainable world.

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