Collaborative Effort by Managers towards Monitoring and Reduction of Unreported Greenhouse Gas Emissions
New Avoided Emissions Platform Launched to Measure Climate Impact
Three European asset managers - Edmond de Rothschild, Mirova, and Robeco - have collaborated to create the Avoided Emissions Platform, an innovative tool designed to help investors track and measure the positive impact of their investments on emissions reductions.
The platform, based on an open access methodology for calculating avoided emissions often referred to as "Scope 4", focuses on quantifying the emissions that were prevented due to investments in low-carbon or climate-positive activities. This approach goes beyond traditional financed emissions accounting, offering a more granular and transparent measurement of climate impact.
One of the key benefits of the Avoided Emissions Platform is its ability to quantify the avoided emissions associated with investments, providing a clearer view of the positive climate contribution. It offers data on emissions reductions linked to climate solutions, complementing conventional financed emissions metrics that typically measure emissions generated by companies.
By integrating avoided emissions data into portfolio-level assessments, the platform enhances transparency and supports better-informed climate-aligned investment decisions. It also facilitates alignment with net-zero and sustainability goals by providing metrics that capture both emissions produced and emissions avoided through investments.
The development of the Avoided Emissions Platform was supported by consultants I Care and Quantis, as well as a dedicated scientific committee. It has gained support from a growing number of partners, including multinational corporations, ESG data providers, and one major French pension fund manager.
The platform is aimed at various stakeholders, such as financial institutions, companies, regulators, and academics. It is an interactive tool that models the avoided emission factors for 65 climate solutions, with plans to add more over time.
For Robeco, the new platform provides a valuable tool to credibly quantify the true contribution of their climate investments to climate mitigation. As a climate and biodiversity strategist at Robeco, Lucian Peppelenbos explained the launch, stating that it was due to strong client demand to measure the impact of their investments in climate solutions.
Access to the platform is available with a license. The partners contributing to the platform include the three European managers, as well as the aforementioned consultants, a scientific committee, and the growing list of partners. The Robeco team has been investing in climate solutions for many years through their climate products.
In summary, the Avoided Emissions Platform supports investors by providing tools and data to track, measure, and report the emissions reductions their investments help achieve. This improved transparency around climate solutions' effectiveness is expected to support sustainable portfolio management and contribute to the global effort to combat climate change.
The Avoided Emissions Platform, a tool developed by Edmond de Rothschild, Mirova, and Robeco, utilizes environmental science to quantify the emissions prevented due to investments in low-carbon or climate-positive activities, thus contributing to climate-change mitigation efforts. This platform, while focusing on finance and business, offers a more granular and transparent measurement of climate impact compared to traditional financed emissions accounting.
