Mapping to Frameworks
Frameworks are the underlying structures that support the way we view and think about systems. Several frameworks that organize the way we think about sustainable economic and social systems have emerged over the past two decades.
The HIP Framework was one of the first. As the field has matured, the HIP framework has proved its underlying flexibility: Health, Wealth, Earth, Equality, Trust Pillars along with management and product metrics, are mapped to several prominent ESG frameworks in use today, with plans to continue collaboratively with new views as they emerge.
HIP Pillars Related to “ESG”
The financial industry has standardized its language around “Environmental, Social, Governance” (ESG) data. While there are 5 HIP pillars rather than 3, they map clearly: Health, Wealth, and Equality all map to “Social” components; Earth maps to “Environment”; and Trust to “Governance.”
The UN SDG Municipal Bond Map
The United Nations Sustainable Development Goals (SDGs) originated at the United Nations Conference on Sustainable Development in Rio de Janeiro in 2012.
There are 17 goals, attempting to encompass all aspects of sustainability: environmental, socio-political, and economical. HIP Investor maps HIP’s rich database of 200+ municipal bond sector specific impact metrics and data to the sub-goals and targets of the UN SDGs to generate SDG Ratings of Muni Bonds.
TCFD
The Taskforce on Climate-Related Financial Disclosures (TCFD), is led by Chair Michael Bloomberg. As an early leader in carbon reporting, TCFD created practical guidelines for disclosing climate-related financial information.
SFDR
The European Union Sustainable Finance Disclosure Regulation (EU SFDR) and the Corporate Sustainability Reporting Directive (CSRD) are part of a plan that encompasses both financial and non-financial organizations.
These disclosures address the transition to sustainability, increasing inclusiveness, and addressing global issue in the financial sector regarding the Green Deal.
SASB
The Sustainability Accounting Standards Board (SASB) recently merged with the International Integrated Reporting Council (IIRC) to create the Value Reporting Foundation (VRF).
This organization focuses on determining the materiality to enterprise value of environmental, social, and governance metrics. SASB was also originally founded by Michael Bloomberg.
