Robeco, Mirova and Edmond de Rothschild Launch Platform to Calculate Avoided CO2 Emissions

Robeco, Mirova, Edmond de Rothschild AM, I Care and Quantis have launched a project, the Avoided Emissions Platform (AEP), which aims to create a global platform to assess avoided emissions, a key metric for the transition to a sustainable economy.

The initiative is supported by 12 asset managers and investors, representing over $4 trillion in assets under management, as well as an international corporate banking house, six renowned data providers, 13 leading firms and an independent scientific committee.

AEP provides a freely accessible and transparent methodology for calculating avoided emissions, often referred to as “Scope 4” emissions.

The energy transition requires not only moving away from carbon-intensive activities, but also making decarbonized alternatives available. However, there has been a lack of transparent and quantified data to facilitate comparisons between these alternatives and to redirect financial flows towards companies that facilitate decarbonization. With an estimated investment need of $215 trillion to reach net zero emissions globally by 2050, developing harmonized metrics is essential to channel capital towards effective climate solutions.

The Avoided Emissions Platform (AEP) provides a freely accessible and transparent methodology for calculating avoided emissions, often referred to as “Scope 4” emissions. This initiative has benefited from the recommendations of a dedicated scientific committee, to ensure consistency with existing avoided emissions guidelines and to develop a credible approach to assessing emissions reductions across sectors.

Among the benefits of the platform, the promoters of the initiative highlight the fact that financial institutions can strengthen their decision-making capabilities thanks to reliable and harmonized metrics that help align portfolios with global net zero goals, companies can accurately calculate and communicate avoided emissions, with an improvement in their credibility, greater access to capital and the acquisition of a competitive advantage.

Consultants and data providers can then access a full range of resources with which to foster collaboration and differentiate themselves in the market, while regulators gain valuable knowledge for policy development and monitoring progress towards climate goals. Finally, they read in a press release, the tool can support academics in obtaining robust data for research and the development of sustainability methodologies.

Overall, the AEP initiative promotes transparency, collaboration and informed decision-making, supporting the transition to a sustainable and decarbonized economy.

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(Featured image by Marcin Jozwiak via Unsplash)

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