Development of environmental impact assessment methodologies for financial institutions
In a highly regulatory and commercial environment, financial institutions are increasingly required to report both on the environmental impacts of their investment and financing activities, and the impacts of environmental risks on their financial performance.
This concept of double materiality is part of a broader trend in the financial sector: the shift from responsible finance (SRI) to impact finance, which requires the use of more sophisticated metrics than traditional ESG ratings.
The development of robust methodologies, looking at environmental impacts, based on science, and the integration of the resulting KPIs into the investment and financing processes will make it possible to meet these challenges.
Succeed in developing your environmental impact KPIs
- Methodological development of environmental impact assessment metrics (carbon footprint, green share, NEC, 2°C alignment, biodiversity footprint, physical and transition risk scores, financial impact)
- Definition and calculation of environmental impact KPIs at the asset level (listed or unlisted company as well as real estate or infrastructure project) or portfolio level
- Analysis of results and integration of environmental KPIs into operational investment and financing tools
