SEB Impact Metric Tool
The SEB Impact Metric Tool is a scalable tool, invented and developed by SEB, that analyzes sustainability factors of investment portfolios. In contrast to traditional equity research, the tool utilizes a fully systematic portfolio approach. All listed companies worldwide can be assessed.
What can be measured?
The Impact Metric Tool consists of several modules to cover various dimensions of sustainability.
Calculations are based on reported company data (provided by Factset, Refinitiv, etc.) as well as estimation models developed in-house. The modules in the tool allow measurement of:
Environmental, social and governance (ESG) aspects of company operations are measured on portfolio level. We are calculating factors such as aggregated carbon intensity, water consumption, gender equality and board independence.
The impacts of the products and services that a company provides is assessed in order to determine the total impacts of the investments on the UN Sustainable Development Goals (SDGs). A mapping of such impacts was developed by the Royal Swedish Academy of Sciences. Both the positive and negative impacts on the SDGs are assessed.
The EU Taxonomy aims to define environmentally sustainable economic activities. In the SEB Impact Metric Tool, a company’s alignment to the new cross-sector sustainability definition by the EU is assessed based on its economic activities. Read more about the EU Taxonomy and how we work with it here.
The financial impacts of physical and transition risks on investments are analyzed. The science-based climate risk model utilizes IPCC research to construct different climate scenarios in line with the TCFD recommendations.
A tool with multiple functions
The Impact Metric Tool can be used to provide SEBs customers with portfolio analyses (see picture) and periodic reports, to design new portfolios, and to set internal key performance indicators for existing portfolios. Furthermore, the tool can facilitate dialogues between portfolio managers and companies.
Disclaimer: SEB’s quantitative model is based on reported and estimated data. Please note that the model is under constant development, has not yet been verified by third-party and should not be seen as legal adherence to future EU Taxonomy regulation.
Interested to know more about the SEB Impact Metric Tool? Please contact:
Anne Kristin Kästner
SEB Climate and Sustainable Finance