Innovation That Matters

The platform automates calculations that would ordinarily be done manually using spreadsheets | Photo source Lukas Blazek on Unsplash

A platform helps investors track emissions from their portfolio

Financial Services

Financial investors can track the information needed to meet greenhouse gas emissions targets using a new platform

Spotted: Financial institutions like the US Securities and Exchange Commission and the Australian Treasury are beginning to propose rules for how financial organisations should make climate-related disclosures in their registration statements and periodic reports. This includes risks that are reasonably likely to have a material impact on their business, operations, or financial condition, along with disclosure of greenhouse gas emissions. Several businesses are springing up to help organisations cope with the new regulations – including startup Pathzero.

Pathzero has created a platform that allows organisations to securely exchange and analyse carbon information. According to the company, Pathzero’s Navigator platform allows investment managers to quickly access and share a high-level overview of their financed emissions, highlighting areas of concern and providing a risk-based approach to reducing emissions. 

Up to now, this type of investment emissions tracking has most often been done on spreadsheets, by specially trained consultants. Pathzero scales this process. The platform tracks scope 1, 2, and 3 carbon emissions (direct emissions, indirect emissions from purchased energy, and indirect value chain emissions) based on global standards like the GHG Protocol and PCAF. Financial institutions can then use the platform to identify carbon hotspots, set carbon emissions targets, and perform analysis to ensure their activities are in accordance with the Paris Agreement

The company states: “We are creating software that empowers company employees who may never have done this before, to gain knowledge and drive real change within their organisation, supported by trusted carbon experts to help every step of the way.”

As climate risk reporting grows, so do the number of innovations aimed at making this easier for organisations of all sizes. Recently, Springwise has spotted a platform that helps financial institutions forecast climate risk, and an AI-powered system that creates decarbonisation plans for real-estate portfolios.

Written By: Lisa Magloff



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