SD-M

What SD-M does

SD-M GmbH is a privately held German company (GmbH) founded in 2009 and headquartered in Garbsen near Hanover, operating with 1-10 employees. The firm develops and licenses a sector-specific ESG data and methodology stack built around three core products. SD-KPI Standards consist of industry frameworks that identify three financially material ESG indicators per industry across 68 sectors; SD-KPInform Database provides monthly ESG data coverage for approximately 19,000 companies since 2009, built in collaboration with Sustainalytics (a Morningstar company); and the SD-KPIndex Family integrates those sector scores into conventional equity and corporate bond indices through structured over- and underweighting mechanisms.

The underlying methodology was developed between 2009 and 2016 using sector-specific financial materiality logic. In 2016, SASB acknowledged a high degree of overlap between SD-KPI analysis and SASB industry standards, and in 2021 the SD-KPI Standard 2016-2021 was explicitly referenced by BaFin in its Guidance Notice on Dealing with Sustainability Risks. The methodology is currently embedded in S&P Global's iBoxx SD-KPI Corporate Bond Index family, which is tracked by the VanEck UCITS ETF, and was previously implemented with STOXX in the iSTOXX Europe 600 SD-KPI Index.

Revenue is generated through a B2B enterprise licensing model, combining subscription-based access to the SD-KPInform Database with index-licensing royalties on methodology used by financial index providers and ETF issuers. Customers are concentrated among asset managers, banks, and index/ETF providers, with the primary go-to-market being direct enterprise sales augmented by distribution partnerships with Sustainalytics, S&P Global, and VanEck. Pricing is not publicly disclosed and is offered on an annual subscription/quote basis.

Name

SD-M

Legal name

SD-M® GmbH

Website

https://sd-m.de

Company type

Private

Founded year

2009

Operating status

Operating

Headcount range

1–10 employees

Short description

SD-M GmbH is a German ESG data provider offering sector-specific financial materiality standards, a database covering approximately 19,000 companies across 68 industries since 2009, and ESG-tilted index methodologies licensed to financial institutions and ETF issuers.

Ownership category

akta.pro rank

Product category

ESG Data & Analytics

NAICS

Portfolio Management and Investment Advice (523940), Portfolio Management and Investment Advice (52394)

SIC

Investment Advice (6282)

akta.pro primary industry

ESG Data, Ratings & Research (Providers, Methodologies, Analytics) (FSAAALAJ)

akta.pro secondary industries

ESG Reporting, Disclosure & Regulatory Compliance (SFDR, EU Taxonomy, TCFD/ISSB) (FSAAALAK), ESG/Sustainable & Thematic Digital Investing Platforms (FSAGAEAK), SDG / Thematic Sustainable Investment Funds (FSANAJAN)

Keywords

• ESG data services
• Sustainability analytics
• ESG index products
• Financial materiality data
• Non-financial reporting

Headquarters

HQ city

Hanover

HQ country

Germany

HQ region

Europe

Offices1 record

Markets served

GTM type

B2B

Offering type

Software

Cost components

Personnel, Technology or R&D, Operations, Marketing or Sales

Revenue model

1. ESG Data Licensing: Licensing of SD-KPInform Database providing financially material ESG indicators to asset managers and banks for risk management integration. Revenue generated through subscription-based access to sector-specific ESG data covering 68 industries and 19,000+ companies.
2. Index Product Licensing: Licensing of SD-KPI methodology to financial index providers for creation of ESG-tilted indices tracking positive excess return differentials against conventional benchmarks.

Pricing tiers

Go-to-market motion2 records

Distribution channels3 records

Marketing channels2 records

Core offering

SD-M GmbH develops and licenses sector-specific, financially material ESG data and indices for institutional investors. Its core offerings are the SD-KPI Standards (sector-based ESG frameworks across 68 industries with three material indicators per industry), the SD-KPInform Database (monthly ESG data covering more than 15,000 companies worldwide, built in collaboration with Sustainalytics), and the SD-KPIndex Family (equity and corporate bond indices applying quantitative SD-KPI tilting, including the iBoxx SD-KPI Corporate Bond Index family implemented with S&P Global).

Product overview

SD-M GmbH is a Germany-based provider of non-financial sustainability/ESG data offering a suite of products centered on financially material ESG indicators. The core offering consists of SD-KPI Standards—sector-based frameworks identifying material ESG indicators across 68 industries—paired with the SD-KPInform Database (monthly ESG data for 15,000+ companies developed with Sustainalytics). The SD-KPIndex Family applies SD-KPI methodology to index construction, including the iBoxx SD-KPI Corporate Bond Index family developed with S&P Global. The portfolio spans standards, data infrastructure, and index products designed for risk management, investment analysis, and regulatory ESG integration.

Differentiator

Problem solved

Functional benefit

Products and services

• SD-KPI Standards Sector-based ESG standards providing more than 15 years of financially relevant ESG data across 68 industries. Each industry framework identifies three particularly material ESG indicators designed to reflect sustainability-related risks and opportunities relevant to business performance, risk management, and strategic positioning. For asset managers, banks, and index providers seeking standardized ESG KPIs.
• SD-KPInform Database ESG data coverage for more than 15,000 companies worldwide (expanded to 19,000) since 2009, developed in collaboration with Sustainalytics (a Morningstar company). The database combines Sustainalytics' underlying ESG data with sector-specific SD-KPI methodology, providing monthly updates for longitudinal risk analysis, regulatory integration, and systematic investment applications. For asset managers and banks requiring financially material ESG data.
• SD-KPIndex Family Index methodologies that systematically integrate sector-specific SD-KPI Scores into conventional equity and corporate bond indices through structured over- and underweighting based on the SD-KPIntegration Score. For asset managers, banks, and index providers implementing systematic ESG-tilted investment strategies without exclusions.
• iBoxx SD-KPI Corporate Bond Index Corporate bond index family implementing SD-KPI methodology in collaboration with S&P Global. Indices apply structured over- and underweighting based on SD-KPIntegration Scores without relying on exclusions, tracked by the VanEck iBoxx EUR Corporates UCITS ETF. For institutional investors and ETF issuers seeking ESG-tilted corporate bond exposure.

Quantifiable outcome

• Positive excess return differentials across multiple market cycles demonstrated by SD-KPIndex Family relative to conventional equity and corporate bond benchmarks
• +2 more outcomes

Named customers2 records

Segments3 records

Ideal customer profiles3 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Partnerships

Five partnerships are on record, tiered core.

• Sustainalytics (Morningstar company)coreTechnology or Integration · 1 January 2009The SD-KPInform Database is developed in collaboration with Sustainalytics, combining Sustainalytics' underlying ESG data with the sector-specific SD-KPI methodology, resulting in a structured, financially material ESG dataset designed for longitudinal risk analysis, regulatory integration and systematic investment applications.
• S&P GlobalcoreTechnology or IntegrationThe SD-KPI methodology is currently implemented in collaboration with S&P Global within the iBoxx SD-KPI Corporate Bond Index family, providing ESG-tilted corporate bond indices demonstrating positive excess return differentials.
• VanEckcoreChannel Partner/ Reseller/ DistributorVanEck ETF (TCBT VanEck - iBoxx EUR Corporates UCITS ETF) tracks the iBoxx SD-KPI Corporate Bond Index, providing institutional access to SD-KPI methodology-based ESG investing.
• SASB (Sustainability Accounting Standards Board)coreStrategic or Co-development PartnerIn 2016, SASB noted 'a high degree of overlap' between SD-KPI analysis and SASB industry standards and appreciated the SD-KPI approach to ranking and prioritizing sustainability topics per industry. SASB Standards are now incorporated within the IFRS Foundation and referenced under IFRS S1.
• BaFin (German Financial Regulator)coreOthersThe SD-KPI Standard 2016-2021 is explicitly referenced in BaFin's 'Guidance Notice on Dealing with Sustainability Risks' as an example of an external sustainability standard in the context of strategic alignment and risk management.

Scale indicators4 records

Recent moves6 records

Expansion highlights4 records

Emerging players

• RepRisk: RepRisk provides ESG and business conduct risk data driven by media and stakeholder signals for institutional investors. Comparable as a specialist ESG data provider to asset managers and banks, though its methodology differs from SD-M's sector-based materiality framework.

Direct peers

• Sustainalytics (Morningstar): Sustainalytics provides company-level ESG risk ratings for institutional investors and is both a direct competitor to SD-M's SD-KPInform Database and a distribution partner (data layer combined with SD-KPI methodology). The deepest comparable given joint product relationship.
• ISS ESG: ISS ESG provides ESG ratings, climate data, and sustainable investment solutions to institutional investors. Competes directly with SD-M in serving asset managers and banks with financially material ESG data for portfolio integration.
• Moody's ESG Solutions (Vigeo Eiris): Moody's ESG Solutions (incorporating Vigeo Eiris) provides ESG assessments to banks, asset managers, and issuers. A direct competitor in company-level ESG ratings and sustainable finance advisory.
• Solactive ESG / Sustainability Indices: Solactive licenses custom and ESG-tilted indices, and has already launched the Solactive Euro IG Corporate SD-KPIndex using SD-M's methodology. Comparable as an index-product channel partner and a peer in ESG index licensing.

Broad incumbents

• MSCI ESG Research: MSCI's ESG Research arm provides institutional-grade ESG ratings and data to asset managers and banks globally. It is the largest incumbent in financially material ESG data and competes directly with SD-M's SD-KPInform dataset and SD-KPI methodology for the same enterprise buyer.
• LSEG (Refinitiv) ESG Scores: Refinitiv (now part of LSEG) provides a broad ESG data suite to investment professionals. Comparable as an enterprise ESG data vendor serving banks and asset managers with financially material sustainability metrics.
• S&P Global ESG Scores (formerly RobecoSAM CSA): S&P Global ESG Scores benchmark companies on industry-specific financially material criteria and is both a competitor in ESG ratings and a partner to SD-M within the iBoxx SD-KPI Corporate Bond Index family.
• FTSE Russell ESG Ratings and Data: FTSE Russell provides ESG ratings, data, and index products (including sustainable investment benchmarks) to global asset managers and asset owners. Comparable as a vertically integrated data-and-index vendor similar to SD-M's standards/data/index offering.
• Bloomberg ESG Data Services: Bloomberg offers integrated ESG data on the Bloomberg Terminal alongside pricing, reference, and analytics. Targets the same asset manager and bank buyers as SD-M and competes for ESG integration into portfolio risk and compliance workflows.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks5 records

Key highlights6 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about SD-M