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Global SDG composite indicator: A new methodological proposal that combines compensatory and non‐compensatory aggregations

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  • Francisco Javier Blancas
  • Ignacio Contreras

Abstract

This paper presents a Global Sustainable Development Goals Composite Indicator to assess the grade in the achieving of targets associated with the Sustainable Development Goals (SDGs) approved in the 2030 Agenda. Based on a critical analysis of the SDG Index, we propose a new aggregation methodology that combines compensatory and non‐compensatory aggregation rules. At a first level, a compensatory indicator is obtained by means of a generalized average which is penalized according to the horizontal heterogeneity of each country and the number of uncontrolled indicators in the territory. At a second level, the set of compensatory indicators of each SDG is aggregated by means of a synthetic non‐compensatory indicator based on an ordinal Benefit of the Doubt model. An empirical study is presented for a set of 32 OECD member countries, which shows the potential of this new tool for planning sustainable development policies focused on the identification of weaknesses.

Suggested Citation

  • Francisco Javier Blancas & Ignacio Contreras, 2025. "Global SDG composite indicator: A new methodological proposal that combines compensatory and non‐compensatory aggregations," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(1), pages 158-176, February.
    • Handle: RePEc:wly:sustdv:v:33:y:2025:i:1:p:158-176
    DOI: 10.1002/sd.3109
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