Today, we’re announcing the launch of Unravel Carbon’s Portfolio Module. This new feature will enable financial institutions to track their financed emissions by streamlining the process of data collection and emissions measurement from their portfolio companies.
Measuring financed emissions, which are emissions linked to investment and lending activities, is crucial for institutions such as banks, insurers, and investment funds, as it allows them to assess their long-term exposure to climate change risk. The GHG Protocol classifies these emissions as indirect Scope 3, Category 15 - Investments, and they can be 700 times higher than a financial institution's direct emissions, according to CDP's Time to Green Finance report.
Financial institutions face growing pressure from shareholders, regulators, customers, and the public to address their climate impact and mitigation efforts. Failing to do so may result in reputational damage and non-compliance with increasing regulatory requirements that cover asset managers in some jurisdictions. Tracking financed emissions also helps institutions discover low-carbon investment opportunities and manage climate-related risks, as climate change presents a disruption to business-as-usual, requiring different capital deployment strategies.
However, financial institutions struggle to measure financed emissions due to complicated fund structures, making data access and quality assessment difficult. Additionally, they often lack the required internal resources to effectively evaluate emissions across diverse portfolios.
"The finance and investment industry plays an important role in both enabling emissions generation and decarbonization, through decision-making around capital deployment. To make informed decisions, data is essential,” said Marc Allen, Co-Founder at Unravel Carbon. “With the new Portfolio Module, we're facilitating the quantification of impacts and the deployment of effective decarbonization levers, ultimately driving capital towards sustainable investments."
Here is what your organization can accomplish with Unravel Carbon's new Portfolio Module.
Track total portfolio emissions and sector-specific performance
The Portfolio Overview offers a comprehensive view of your total investment portfolio emissions, making it simple to track their changes over time. This view allows for efficient monitoring and management of your overall portfolio's carbon footprint.
Additionally, the Portfolio Sectors view delivers valuable insights into emissions by portfolio company industry sectors. This enables you to assess performance against sector-specific goals, ensuring that your investment strategy aligns with your sustainability objectives.
View detailed emissions insights by portfolio company
The Portfolio Companies view offers a detailed insight into financed emissions for each portfolio company, illustrating their percentage contribution to total portfolio emissions, their breakdown of emissions by scope, and decarbonization progress over time.
You can rely on the data's accuracy as Unravel Carbon's methodology has been certified by TÜV Rheinland for meeting the key requirements of the GHG Protocol and ISO 14064. According to the certification, our platform is not only ‘scientifically based’ but also ‘reflects the state of the art’. This ensures that the information provided is reliable and trustworthy, enabling you to make more informed decisions about your investments.
Instantly update portfolio performance by editing equity ownership
The Manage Portfolio feature allows you to update ownership information for each company, such as the ownership period, the amount invested, and the company valuation
By inputting the updated information, the platform instantly revises your portfolio emissions performance. This ensures that you always have access to the most up-to-date emissions data for your investments.
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We are excited to launch Unravel Carbon’s Portfolio module and for it to be available to financial institutions. Investors and lenders have a critical role to play in accelerating our transition to a low carbon economy, and we want to provide them with the tools they need to make informed decisions about their portfolio’s emissions performance.
Interested in learning more about the new Portfolio Module? Request a demo