Robeco, Mirova, Edmond de Rothschild AM, I Care and Quantis have launched the Avoided Emissions Platform ( AEP ), which is dedicated to harmonizing the evaluation of climate solutions’ impact by employing a transparent methodology for calculating avoided emissions – a vital metric essential for advancing the transition to a sustainable economy.

The AEP is supported by 12 asset managers and owners, representing more than US$4 trillion of assets under management, as well as one international corporate investing bank, six recognized data providers, 13 leading corporates and an independent scientific committee.

The energy transition, the companies say, necessitates not only a shift away from carbon-intensive activities but also the availability of decarbonized alternatives. However, until now, there has been a lack of transparent, quantified data to support the comparison of these alternatives and to redirect financial flows towards companies facilitating decarbonization.

With an estimated investment requirement of US$215 trillion to achieve global net-zero emissions by 2050, according to Bloomberg’s New Energy Outlook 2024, the development of harmonized metrics is essential for channelling capital into effective climate solutions.

The AEP is an interactive tool that models the avoided emission factors for 65 climate solutions. It is based on a transparent and open access methodology for calculating avoided emissions, often referred to as Scope 4.

This initiative, the companies point out, has benefited from recommendations by a dedicated scientific committee, ensuring consistency with existing guidance on avoided emissions and a credible approach to assessing potential emission savings across sectors. The platform can be accessed with a licence and will be expanded over time with new solutions.

The AEP delivers significant benefits to a diverse range of stakeholders:

• Financial institutions gain enhanced decision-making capabilities through reliable, harmonized metrics that help align their portfolios with global net-zero objectives.
• Companies can accurately calculate and report their avoided emissions, improving credibility and access to capital while gaining a competitive edge.
• Consultants and data providers gain access to comprehensive resources, fostering collaboration and market differentiation.
• Regulatory bodies receive valuable insights to inform policy development and track progress towards climate goals.
• Academics obtain robust data for research and the advancement of sustainability methodologies.

Overall, this initiative, the companies argue, promotes transparency, collaboration and informed decision-making, driving the transition to a sustainable and decarbonized economy.

“Robeco has a long-standing commitment to invest in the net-zero transition,” adds Lucian Peppelenbos, the company’s climate and biodiversity strategist. “In particular, our climate strategy, such as the Smart Energy and the Global Climate Transition Strategies, have been investing in climate solutions for many years. This new database will help us credibly quantify their true contribution to climate mitigation. This addresses the high demand from our clients for more extensive impact measurement.”