Carbonplace’s Post

Financial institutions face a daunting challenge when attempting to calculate the climate impact of their portfolios, as many firms lack comprehensive carbon disclosure. Our latest article explores how these institutions are turning to modeled approximations, such as Environmentally-Extended Input-Output (EEIO) databases, to estimate financed emissions based on economic proxies. Discover the methodological limitations and reservations surrounding these tools, and learn about the parallel imperatives of improving data integrity, expanding coverage, and pursuing primary data access to drive genuine influence over downstream decarbonization. 🌍📈 https://lnkd.in/dvuX-Pth #FinancedEmissions #CarbonAccounting #ClimateAction #SustainableFinance

As pressure mounts for financial institutions to account for their financed emissions, the lack of comprehensive carbon disclosure from client firms presents a significant challenge. Our latest article delves into how economic proxies and Environmentally-Extended Input-Output (EEIO) databases are being used as pragmatic solutions for estimating portfolio carbon footprints despite data gaps. #Scope3 #FinancedEmissions #SustainableFinance #CarbonAccounting #ClimateAction

This is a helpful primer on voluntary carbon markets, as well as good news about their stabilization. This adds to what I've learned from experts like Matt Flavin https://lnkd.in/gTgtAq2r

Many financial institutions with an eye on financed emissions use Asset Impact to gain a detailed, bottom-up understanding of their emissions by scope, linking physical assets across the globe with the companies and securities that account for 75% of global emissions across 9 sectors. Explore the asset-based data financial institutions use for financed emissions: https://lnkd.in/gUp42tPD #emissions #scopemanagement #impact #business

The recent announcements of some high-profile companies withdrawing from the carbon credit scheme triggered skepticism about the efficacy of such projects, raising concerns about their actual climate benefits and facing accusations of greenwashing. The latest Viridios AI report indicates that the dynamic carbon credit market persists, witnessing a rise in retired credits. Encouragingly, new carbon removal technologies (direct air capture) have garnered significant interest from investors and global government support. Full article link here https://lnkd.in/eriSQckj

2024 has already seen significant strides in climate-related disclosure regulation worldwide - from Singapore’s announcement of ISSB-aligned mandatory climate reporting to the SEC climate disclosure rules for companies and investors in the US. 🌏 Such developments signal a landmark shift in how companies will be required to disclose their emissions and use of #CarbonCredits, incentivising even greater strides in #ClimateAction. At Carbonplace, we’re pleased to see the implementation of ISSB regulation and welcome efforts for greater transparency in the #CarbonMarkets to unlock market growth and improve credit quality. As the market evolves amidst incoming regulations, Carbonplace well-positions users with essential tools including portfolio management, transparent pricing and real-time insights to facilitate comprehensive reporting. Learn more about how Carbonplace can empower your #Sustainability journey here: https://lnkd.in/e9cTt-5h

Market for Carbon Credits Faces Fresh Blow as Offsets Slammed - a characteristic of technological revolutions is the creation of financial instruments that may not be effectively connected to real economy changes. https://loom.ly/BuPMbSA

Scope 3 #emissions are an essential part of understanding an individual company’s impact on #climatechange. Whether its products and services will help to deliver a #netzero economy. Read good insights about investor perspectives on both the importance and the complexity of the #valuechain emissions. #scope3emissions #decarbonization

How much do you know about financed emissions? 🏦 They’re an elusive but important part of the #decarbonization puzzle for financial organizations. There’s a global commitment to achieving #NetZero emissions by 2050, but financial institutions, including banks, are still lagging behind in aligning their activities with climate transition objectives. Recent assessments highlight the substantial exposure of financial institutions' portfolios to transition risks and their insufficient alignment with sustainability goals. In 2023, it was revealed that significant portions of securities portfolios held by financial players across Europe were heavily invested in sectors directly impacted by climate policies, such as transportation and fossil fuels. France, for instance, saw investments totaling 940 billion euros in these sectors, highlighting the urgent need for realignment with sustainability objectives. Want to find out more about #financedemissions, and how your organization can track, report on, and act to reduce them? 🧐 ⬇ Click on the link in the comments (below) to read SWEEP's handy guide ⬇

ICYMI: Last week the Biden Administration released its own principles for high-integrity engagement with voluntary carbon markets. The principles reflect the important role that carbon markets can play in driving emissions reduction, while recognising the need for robust guidelines around credit supply and demand. The announcement sends a strong signal for private sector participation in the VCM and emphasises the role of credits as complementary to at source emissions reduction actions. Read the full statement here: https://lnkd.in/e2w2U4-y #VCM #voluntarycarbonmarkets #carbonmarkets #carboncredits #emissionsreduction #corporatetransition #corporatesustainability #climateaction #climatechange #climatefinance #climatepolicy #netzero #netnegative