Smart Innovators: Financed Emissions Management

03 May, 2024

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Executive Summary

As financial institutions pursue alignment with global sustainability commitments, they must undertake the complex task of managing financed emissions. Here, they face challenges around data collection, estimation and comparability, and scrutiny over greenwashing. In response, software providers are enhancing their capabilities in data management, analytics and decarbonization. Analysis of 15 leading vendors reveals innovations that provide more accurate data estimates and visualizations of portfolio decarbonization. This report will help financial institutions select the appropriate tools to integrate emissions data into their investment decisions, thus contributing to the objective of achieving net zero targets.
Vendors compete to support financed emissions management
The many hurdles of financed emissions management start with data collection and estimation
Introducing financed emissions management
Financed emissions management involves data capture through two core models
Financed emissions management hinges on three core capabilities
Innovators cover many asset classes, focus on data quality, and support portfolio analytics
Financed emissions management capabilities: five factors firms should consider
Figure 1. Lack of emissions data from third parties is a hindrance to climate initiatives
Figure 2. Two software categories support financed emissions management
Figure 3. The eight capabilities of financed emissions management, defined
Figure 4. Financed emissions management software providers: capabilities assessment
Figure 5. PCAF asset classes

About the Authors

Adam Barnard

Adam Barnard

Principal Analyst

Adam is a Principal Analyst in the Verdantix Net Zero & Climate Risk practise. Prior to joining Verdantix, Adam was a Director at an environmentally focused US investment ...

Ryan Skinner

Ryan Skinner

Research Director

Ryan is a Research Director at Verdantix, where he leads a team of analysts delivering research, data and advisory services that help clients navigate the fast-evolving landsc...

View Profile

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