The latest developments in the ESG space.

Asset managers Robeco, Mirova, Edmond de Rothschild Asset Management, as well as consultancies I Care and Quantis have just launched the Avoided Emissions Platform (AEP) to harmonise the assessment of climate solutions’ impact.

The global platform focuses on harmonising the evaluation of climate solutions' impact by employing a transparent methodology for calculating avoided emissions – a metric essential for advancing the transition to a sustainable economy.

The energy transition necessitates not only a shift away from carbon-intensive activities but also the availability of decarbonised alternatives, the firms said in a statement. However, until now, there has been a lack of transparent, quantified data to support the comparison of these alternatives and to redirect financial flows towards companies facilitating decarbonisation. With an estimated investment requirement of $215 trillion to achieve global net-zero emissions by 2050, the development of harmonised metrics is essential for channelling capital into effective climate solutions.

The AEP is an interactive tool which aims to model the avoided emission factors for 65 climate solutions. It is based on a transparent and open access methodology for calculating avoided emissions, often referred to as “scope 4.” This initiative has benefited from recommendations by a dedicated scientific committee, ensuring consistency with existing guidance on avoided emissions and a credible approach to assessing potential emission savings across sectors. The platform can be accessed with a licence and will be expanded over time with new solutions.

The AEP aims to deliver benefits to a diverse range of stakeholders:

-- Financial institutions gain enhanced decision-making capabilities through reliable, harmonised metrics that help align their portfolios with global net-zero objectives;

-- Companies can accurately calculate and report their avoided emissions, improving credibility and access to capital while gaining a competitive edge;

-- Consultants and data providers gain access to comprehensive resources, fostering collaboration and market differentiation;

-- Regulatory bodies receive valuable insights to inform policy development and track progress towards climate goals; and

-- Academics obtain robust data for research and the advancement of sustainability methodologies.