Asset managers back new Avoided Emissions Platform

Twelve asset managers with US$4 trillion of assets under management have helped launch the Avoided Emissions Platform (AEP), a new tool that calculates avoided emissions to assess the impact of climate solutions.

The Avoided Emissions Platform (AEP) models avoided emission factors for 65 climate solutions based on a transparent and open access methodology for calculating avoided emissions, sometimes also referred to as "scope 4".

Robeco, Mirova, Man Group, Natixis Corporate & Investment Banking, Natixis Investment Management, Amundi, Comgest, Edmond de Rothschild AM, Sienna Investment Managers and Caisse des Dépôts are founding partners in the initiative.

The group said the energy transition necessitates not only a shift away from carbon-intensive activities but also the availability of decarbonised alternatives.

"However, until now, there has been a lack of transparent, quantified data to support the comparison of these alternatives and to redirect financial flows toward companies facilitating decarbonization. With an estimated investment requirement of US$215 trillion to achieve global net-zero emissions by 2050, the development of harmonised metrics is essential for channelling capital into effective climate solutions," they said.

AEP helps financial institutions gain enhanced decision-making capabilities using metrics that help align their portfolios with global net-zero objectives.

Companies will be able to use AEP to calculate and communicate their avoided emissions, while regulatory bodies can access insights to inform policy development and track progress toward climate goals.

Robeco climate and biodiversity strategist Lucian Peppelenbos said Robeco's climate products, such as the Smart Energy and the Global Climate Transition funds, have been investing in climate solutions for many years.

"This new database will help us credibly quantify their true contribution to climate mitigation. This addresses the high demand from our clients for more extensive impact measurement," Peppelenbos said.

Mirova climate and environment lead expert Manuel Coeslier said: "Clear and comprehensive information on companies' true contributions to this goal is essential, notably through the provision of climate solutions. We are confident the Avoided Emissions Platform will soon establish itself as a global market platform, thus enhancing ambition and transparency in measuring avoided emissions."

Air Liquide, Dassault Systèmes, EDF, Eramet and Fives are some of the global corporations partnered in the initiative. The data providers include Morningstar Sustainalytics and Sustainable Fitch.