SDG Analysis
Blue like an Orange maps each potential opportunity against the Sustainable Development Goals (“SDGs”), assigning a score similar to a credit rating given by a Moody’s or an S&P rating.
The SDG mapping begins in the preliminary screening phase, in parallel to the commercial preliminary analysis of the opportunity.
Each investment will be given an initial rating before a first Investment Committee meeting. The rating will be refined as the investment progresses through our approval process, and then be updated on an annual basis, and be presented alongside the commercial shadow credit rating.
More specifically on the scoring methodology, Blue like an Orange has selected “Primary Goals” that are applied to all opportunities; these SDGs are amongst those most commonly discussed in the development sector, and they are most likely to be addressed by the private sector; they include:
Goal# 8 (Job creation)
Goal# 5 (Gender equality)
Goal# 9 (Innovation)
Goal#12 (Environment)
“Primary Goals” are applied to all opportunities, but other goals used in the tool are elective, and are selected by the team on each opportunity.
For each SDG Target in the matrix below, the deal team evaluates the strength of the impact generated by the company in support of the Goal and assigns a numeric value.
Scoring methodology
For each Goal/ Target, the deal Team evaluates the strength of the impact generated by the opportunity and assigns a numeric value, according to a specific methodology, as described in the complete Methodology document (hyperlink); the scores are multiplied by weights.
SDG Rating
SDG Blue can have a score 0-10An opportunity needs to score a minimum of 6.0 to be considered for investment.