The Global Algorithmic Institute has developed the methodology to measure SDG target 12.6, using Big Data and Artificial Intelligence (AI).
The Global Algorithmic Institute at GlobalAI Co.
Methodology 12.6, powered by the Global Algorithmic Institute
The Global Algorithmic Institute has built the mechanism to aggregate firm-level, private-sector data on a global basis.
We are supporting the creation of a global platform for corporate sustainability reporting which will facilitate harmonization and build capacities on data collection at the corporate and national level. We collect, collate, store, analyze and report data for the SDGs through advanced statistical techniques and AI, and determine compliance with the Minimum and Advanced Reporting Requirements.
This initiative meets the common needs of many different stakeholders of the SDG agenda. It also enhances the integration of sustainability information into the annual reporting cycle of companies, and incentivizes sustainability practices within the private sector.
"It's time to harness the work and intellectual creativity of those outside the official statistics tent"
Chief Statistician of the UNCTAD Statistics Division
We provide SDG data and analytics for official purposes.
Table of Contents
1. What is SDG target 12.6?
SDG target 12.6 calls for a greater integration of sustainability information in the regular reporting cycle of companies. It takes into account all dimensions of sustainability, including economic, environmental, social, institutional and governmental factors.
As such, SDG target 12.6 represents a unique opportunity to move more than 100 UN member countries to toward consistent, high quality, common global standards for reporting firm-level, non-financial ESG and SDG data.
2. Why is SDG indicator 12.6.1 unique?
SDG indicator 12.6.1 is the only SDG target to explicitly recognize the role of the private sector in delivering on the SDGs. The private sector has a critical role to play in achieving the SDGs, which cannot be achieved by governments or Multilateral Development Banks alone.
To deliver on sustainability, we need the private sector and the financial markets to direct funds to companies that are contributing to sustainable objectives. And we need to encourage companies to adopt sustainable practices.
Currently, difficulty in measuring to what extent companies are really contributing to the SDGs hampers progress on delivering on sustainability. The lack of transparency also hinders investment flows.
3. What are the challenges in achieving SDG target 12.6?
Currently, two main factors hinder progress on delivering on sustainability by aligning the private sector with the SDGs:
- It is difficult to measure to what extent companies are really contributing to the SDGs.
- The lack of transparency hinders investment flows, and makes it difficult to identify how to allocate capital where it is most needed to achieve the SDGs.
4. Who are the key players on SDG target 12.6?
The United Nations Conference on Trade and Development (UNCTAD) has officially been given the mandate by the UN to design and deliver corporate sustainability reporting for the SDGs.
The Global Algorithmic Institute was chosen by UNCTAD, in an open competitive process, to work with the UN to design and achieve this mandate.
GAI is providing the Big Data technology, expertise and infrastructure to measure progress on SDG indicator 12.6.1. Our methodology uses firm-level, private-sector data for official purposes.
5. How is the Global Algorithmic Institute building Methodology 12.6?
Since 2017, the Global Algorithmic Institute has been engaging with the UN as a data compiler of unofficial statistics. We provide data and analytics to the UN and its agencies which can be certified and accredited as official for SDG purposes, to bring innovative solutions for the Sustainable Development Goals (SDGs).
GAI has built the mechanism to identify company reporting for consistency and comparability based on minimum requirements for metadata guidance on the SDGs. The UN has already published our data.
We collect, collate, store, analyze and report data for the SDGs through advanced statistical techniques and AI to determine coherence with the minimum and advanced level requirements.
6. What will be the outcomes of achieving SDG target 12.6?
Meeting SDG target 12.6 provides an important opportunity not only to monitor, analyze and promote the growth in sustainability reporting globally, but also to monitor and promote high quality reporting that provides data and analytics on sustainability issues in a consistent and comparable manner.
The outcome of target 12.6 will:
- Harmonize global sustainability reporting
- Align government policies with the SDGs
- Provide critical data to National Statistical Offices for governments’ Voluntary National Reports (VNRs)
- Help guide government policies
Together, this information will inform countries and the world on our collective progress on achieving the Sustainable Development Goals. The data will also identify where capital needs to be mobilized and redeployed to achieve our shared goals.