ABOUT THE SDG IMPACT
STANDARDS

Updated May 2023

Introduction
The SDG Impact Standards (the Standards) have been developed by SDG Impact – a flagshipinitiative of the United Nations Development Programme (UNDP) – to help investors and enterprises
operate more sustainably and contribute positively to sustainable development and the United
Nations Sustainable Development Goals (SDGs).

About the SDGs
The 2030 Agenda for Sustainable Development and its 17 Sustainable Development Goals (andassociated targets and indicators) are the world’s blueprint to achieve a better and more sustainable
future for all. They address the global challenges we face including poverty, inequality, climatechange, environmental degradation, and peace and justice. The SDGs were agreed upon by all 193
Member States of the United Nations and also call on the private sector to apply its creativity andinnovation towards solving sustainable development challenges. The SDGs break down silos
between different actors and geographies – creating space and opportunities for new ways of working
towards solutions, including by working collaboratively with a broader range of partners andconstituencies.

The business case for operating sustainably and contributing positively to the SDGs
Every day, more and more enterprises and investors are looking for straightforward ways to operate
more sustainably and make a positive contribution to the SDGs. Indeed, enterprises and investors
increasingly recognize that sustainable development is at the very heart of long-term value creationand failing to achieve the SDGs is a constraint on economic potential and undermines systemstability, future business prospects and future investment performance. Operating sustainably andcontributing to the SDGs can help organizations use a common language and shared purpose to 1:•
Open-up new business and investment opportunities and efficiency gains•
Future proof businesses and investment portfolios•
Manage risk more effectively•
Enhance reputation•
Attract and retain employees, consumers, B2B customers, and investors•
Strengthen stakeholder relations•
Drive innovation•
Secure social license to operate•
Keep pace with – and anticipate future – policy developments•
Help stabilize societies and markets.
But we are not yet on a sustainable path and there is a lack of clear guidance on how organizations
can translate intent to action. The SDG Impact Standards aim to address this knowledge gap andmove organizations from SDG alignment to SDG action – from thinking about the SDGs as an add-on
to what business gets done to how all business gets done.

About the Standards
The Standards are decision-making standards, not performance or reporting standards. They aredesigned to help organizations integrate operating responsibly and sustainably and contributing
positively to sustainable development and the SDGs into organizational systems, investment
frameworks and decision-making practices, using a common language and shared approach to do so.

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Sources: https://sdgcompass.org/; https://d306pr3pise04h.cloudfront.net/docs/news_events%2F9.3%2Fbetterbusiness-better-world.pdf

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The foundation of the Standards is operating sustainably and contributing positively to sustainable
development and the SDGs. This cannot be achieved without demonstrating respect for human rights
in line with the United Nations Guiding Principles for Business and Human Rights (UNGPs), planetary
boundaries in line with science-based targets, and other responsible business practices in line with
the UNGC’s Ten Principles and UN Women’s Empowerment Principles and is realized througheffective impact management and decision making.
The Standards are organized around four interconnected themes – strategy, management approach,transparency, and governance (see Figure 1) – each of which plays an important role in fully
integrating sustainability and contributing positively to the SDGs into organizational systems anddecision making.

Figure 1: The SDG Impact Standards

Strategy
Embedding sustainability and contributing positively to the SDGs in purpose and strategy is importantbecause it drives attention, focus and resources to what matters most and where the organization canhave the most significant impact on important outcomes – including by reducing negative ones. It
recognizes that organizations’ prospects for future prosperity increasingly depend on the health of theplanet and the wellbeing of humanity. Operating responsibly and sustainably and contributing to theSDGs is not an add on to what business gets done – it’s how all business gets done.

Management approach
Integrating responsible business practices and impact management into organizational systems anddecision making is about setting the right conditions to maximize chances of achieving theorganizational goals of contributing positively to the SDGs and increasing the probability of successover time. It helps organizations generate options and make more informed choices between those
options to optimize their contribution towards sustainable development and the SDGs.

Transparency
Being transparent is an important element of being accountable to Stakeholders – all interested
parties including those affected or potentially affected in future by the organization’s decisions andactivities. It also helps Stakeholders make more informed decisions, for instance about whether theywant to work with or for the organization, invest in or lend to the organization, or buy or use theorganization’s products and services. To be effective, transparency needs to be useful and accessible
to all Stakeholders.

3Governance
Governance is an essential element of embedding responsible business and impact management
practices into organizational decision-making. The organization’s informal and formal governancemechanisms define expectations of behavior, how decisions are made and how the organization
holds itself and others accountable for their decisions and actions in accordance with its values,principles, and policies.
The Standards build on and complement existing work undertaken by other industry-led initiatives on
impact management and measurement. The same structure is followed across all the SDG Impact
Standards (for Enterprises, Bond Issuers and Private Equity Funds and the OECD-UNDP Impact
Standards for Financing Sustainable Development). In this way, the Standards create a sharedlanguage and approach for integrating impact management and the SDGs into decision-making, fillgaps in current market practices which are undermining progress towards the SDGs, and connect
different actors across the ecosystem to create the enabling environment for greater cross-sector
collaboration and innovation in SDG financing solutions (see Figure 2).

Figure 2 How the Standards work with other principles, frameworks, and tools
Source UNDP and OECDThe Standards help to make high-level impact management principles2 actionable, and guide thechoice of which frameworks, methodologies and tools should be used to appropriately measure andmanage impact. They embed the SDGs and the Impact Management Project (IMP) shared norms andprovide an operating system for the application of existing tools and frameworks, including metrics
and taxonomies. By creating a robust internal impact management system, organizations that adopt
the Standards will also be in a much better position to meet the growing and various sustainability
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Such as the Operating Principles for Impact Management (OPIM), the United Nations Environment Programme– Finance Initiative (UNEP-FI) Principles for Positive Impact Finance, United Nations Global Compact CFO
Principles on Integrated SDG Investments and Finance, SVI’s seven principles of social value.

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reporting and disclosure requirements and expectations of governments, regulators, investors, andother stakeholders.
Ultimately, the Standards facilitate organizations in adopting responsible business practices andintegrating impact management into organizational systems and decision-making practices with theintention of operating sustainably and optimizing contribution to sustainable development and theSDGs.

Who can use the Standards
The Standards are for all Enterprises, Bond Issuers and Private Equity Funds committed to operating
sustainably and contributing positively to sustainable development and the SDGs – regardless of size,
geography, or sector.
The Standards are also a useful guide for other actors in the value chain to frame inquiry, assessment
and decision-making about an organization’s impact management capacity and strategies to advancesustainable development and the SDGs. This includes investors, to frame their investment
mandates, guidelines, and due diligence; Analysts, advisors, assurers, and research houses, toadvise their clients or assure or benchmark practice; and Government and policymakers to alignpolicy and regulations with the Standards and otherwise support their adoption in line with policypriorities to promote sustainable development and support achievement of their SDG commitments.

How the Standards are organized
The Standards
The objective of the Standards is to define the requirements for strategy, management approach,transparency, and governance that increase the likelihood that an organization is operating
sustainably and contributing positively to the SDGs. They do not provide a guarantee. If allorganizations were applying the Standards, the UNDP believes that there would be positive
contribution to sustainability and the achievement of the SDGs.
The Standards are provided to organizations as a ‘best practice’ guide to help them operate moresustainably and optimize their contribution to sustainable development and the SDGs by integrating
responsible business and impact management practices into their organizational systems and internal
decision-making. Organizations are encouraged to use the Standards as a gap analysis and selfassessment tool, and to fill gaps and improve practice over time. The Standards should be used inconjunction with the glossary and guidance provided.
The tables that follow this summary set out the actions Enterprises, Bond Issuers and PE Funds will
undertake to properly integrate operating sustainably and contributing positively to sustainable
development and the SDGs into their organizational systems and decision-making and maps thoseactions to the practice indicators included in the relevant set of Standards.

Glossary
A comprehensive Glossary supports, and is an essential extension of, the Standards. Terms have themeaning ascribed in the Glossary when used in the Standards.

Guidance materials
Guidance Notes at the Practice Indicator level are provided to enhance understanding of the scopeand practical application of the Standards to assist Standards users in interpreting, implementing, andapplying the Standards in a consistent manner. Links to relevant frameworks, tools and resources andexamples (where available) will also be provided. More examples will be added over time as casestudies are developed with organizations using the Standards.

5Assurance Framework and SDG Impact Seal
An external assurance framework, SDG Impact Seal and an Assurer training and accreditation
program for suitably qualified third-party assurers are being developed based on the Standards.
Independent assurance is an important mechanism to build market trust and confidence and reduce
the potential for impact washing or the over-statement of claims.
The assurance process is designed to provide assurance that the organization has the policies andprocesses in place to achieve the objective of the Standards. The development of the Assurance
Framework will also reduce the risk of a proliferation of proprietary assurance approaches that mayvary in quality and the level of transparency provided. Recognizing that the Standards represent bestpractice, and it will take organizations time to fully implement them, the minimum evidence
requirements for assurance and to qualify to apply for the SDG Impact Seal are set at a lower level
than set out in the Standards, however maintaining eligibility for the Seal over time will requirecontinuous improvement towards best practice in line with the SDG Impact Standards over time.
An Assurance Design and Implementation Working Group is assisting UNDP to develop theAssurance Framework. The Working Group comprises a select group of expert practitioners
including assurance providers, assurance policy makers and technical experts on assurance fromprofessional bodies, standards users, and academia, and includes sector expertise across thedifferent Standards and knowledge of developed and developing markets.
Organizations are highly recommended to move from self-assessment to having their impact
management practices assured at regular intervals by an independent accredited assurer.
Information about the assurance framework and minimum evidence requirements will be publicly
available and may be helpful to organizations in planning their implementation roadmap before theyseek independent assurance of their practices from an accredited assurer.

Other Complimentary services and resources
Self-assessment tool
An excel-based self-assessment tool is available for each set of Standards to assist organizations touse and implement the Standards, undertake gap analysis, and prepare development plans, andprepare for assurance. You can download the self-assessment tool at
https://sdgimpact.undp.org/resources.html. The longer-term plan is that an on-line platform will be
developed to house and enable engagement with the Standards and Assurance.
Mapping of the SDG Impact Standards to relevant principles frameworks
SDG Impact has mapped the SDG Impact Standards for Private Equity Funds to the IFC Operating
Principles for Impact Management and has mapped the SDG Impact Standards for Enterprises toboth the Sustainable Development Goal Disclosure (SDGD) Recommendations and to the UNGC
CFO Principles on Integrated SDG Investments and Finance which are available athttps://sdgimpact.undp.org/resources.html.
Education and Training
UNDP in collaboration with CASE at Duke University developed Impact Measurement andManagement for the SDGs https://www.coursera.org/learn/impact-for-sdgs, a free online training
course available through Coursera, with content now also available in a number of languages.
Customized training on the SDG Impact Standards is available on a fee-for-service basis provided
by UNDP and external trainers who have successfully completed the SDG Impact Standards Trainthe-Trainer program and been accredited to deliver training on the SDG Impact Standards Visit
https://sdgimpact.undp.org/sdg-impact-standards-trainers.html for more information about training
on the Standards and the list of accredited trainers.
UNDP, in collaboration with Social Value International (SVI), has developed the SDG Impact
Standards Train-the-Trainer program to train and accredit suitably qualified trainers to lead training
on the SDG Impact Standards. Accredited trainers are provided ongoing support through access toa library of training resources and regular CPD events. For more information, visit
https://sdgimpact.undp.org/become-a-trainer.html.
Visit www.sdgimpact.undp.org to stay up to date and access resources as they become available.

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SDG Impact Standards for Enterprises – Enterprise actions

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SDG Impact Standards for Enterprises – Mapping Practice Indicators to Enterprise actions

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SDG Impact Standards for Private Equity Funds – Fund’s actions

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SDG Impact Standards for Private Equity Funds – Mapping Practice Indicators to Fund’s actions

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SDG Impact Standards for Bond Issuers – Issuer actions

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SDG Impact Standards for Bond Issuers – Mapping Practice Indicators to Issuer actions16

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