The WWF published in November 2019 its report Aligning finance for one planet, which offers a conceptual framework in order to assess portfolio contributions to Science-Based Sustainability Targets.&nbsp;&nbsp;

<figure class="image"><img src="https://strapipreprod.s3.eu-west-3.amazonaws.com/wwf.png"></figure>The proposed framework suggests a structured approach to help financial regulators and institutions assess both (a) environmental impacts on financial portfolios, i.e. financial risks and (b) financial portfolios’ impacts on the environment*, which can be positive or negative.The Aligning Finance for One Planet Framework brings together: • Environmental indicators to evaluate investments’ sustainability levels in absolute terms • Existing methodologies to assess the environmental impacts of financial portfoliosWe are proud that Carbon Impact Analytics, Carbon4 Finance’s methodology to measure the carbon impact of portfolios, is identified for its three levels of assessment (asset, corporate and porfolio level), its application to any sector, and its capacity to include a 2°C scenario.

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Aligning finance for one planet

<h3>Introduction</h3>The EU Green Bond Standard is a concrete application of the EU taxonomy, but a quantitative assessment of the climate impact remains out of investors’ reach. Carbon4 Finance equips investors with a dedicated measurement tool.The market for green bonds (GB) has steadily developed over the last few years. In 2020 alone, green bonds’ issuance topped close to USD 300 billion (CBI, 2021<a href="https://www.climatebonds.net/2021/08/climate-bonds-updates-2021-green-forecast-half-trillion-latest-h1-figures-signal-new-surge"><a class="footnoteLink" href="#footnote-1">[1]</a></a>). However, its issuance barely represents 4% of the total corporate bond issuance in 2020<a href="https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52021PC0391"><a class="footnoteLink" href="#footnote-2">[2]</a></a>, while the European Commission expects green bonds to become one of the largest sources of green investment as to meet the green investment gap in Europe. Until now, the GB landscape was based on market-defined standards, with a possible lack in transparency, consistency, and credibility for investors. Without a proper bottom-up analysis of climate mitigation contribution, greenwashing hinders the transition to a low-carbon economy. But with the European standard for green bonds, this is about to change.<figure class="image"><img src="https://strapipreprod.s3.eu-west-3.amazonaws.com/visuel_1_1_768x511.png"><figcaption>Source: Climate Bonds Initiative, August 2021</figcaption></figure>Carbon4 Finance has for years supported investors with assessing the climate impact of 900+ Green Bonds, evaluating their contribution to climate change mitigation. This new regulatory development lays the foundation for a standardized and more transparent process for green bonds issuance, a much-awaited development.<h3>EU GBS, the new “Gold standard”</h3>Green bonds will play a critical role in the decarbonization of all sectors of our economy. However, the definition of “green” activities remains fuzzy, relying on market-defined standards (e.g., Green Bond Principles, Climate Bond Initiative), less comprehensive and ambitious than the European Taxonomy. In July 2021, the renewed European Sustainable Finance strategy introduced a long-awaited green bond framework, called the “EU GBS” – or European Green Bond Standard.With the European Green Deal<a href="https://ec.europa.eu/info/strategy/priorities-2019-2024/european-green-deal/delivering-european-green-deal_en﻿"><a class="footnoteLink" href="#footnote-3">[3]</a></a> and its ambition to reduce EU’s emissions by 55% its emissions by 2030 (compared to 1990 levels)<a href="https://ec.europa.eu/info/strategy/priorities-2019-2024/european-green-deal/delivering-european-green-deal_en#documents"><a class="footnoteLink" href="#footnote-4">[4]</a></a>, substantial investments are needed in all sectors to reach Europe’s climate commitments. For Ursula Von Der Leyen, the President of the Commission, this framework will “set a “gold standard” for how investors can recognize bonds representing real green investments, to help them make the right choice.”<a href="https://twitter.com/vonderleyen/status/1412410637209280517 ﻿"><a class="footnoteLink" href="#footnote-5">[5]</a></a>Following the Technical Expert Group’s recommendations<a class="footnoteLink" href="#footnote-6">[6]</a>, the EU GBS addresses the inherent greenwashing and transparency challenges. It will be a voluntary standard, open to any EU and non-EU issuer. Only green projects (green assets and expenditures – OPEX and CAPEX), which are 100% aligned with the EU Taxonomy requirements would be eligible for obtaining the standard (for more background on the taxonomy, read this insightful analysis by Carbone 4<a href="https://www.carbone4.com/analyse-taxonomie-europeenne"><a class="footnoteLink" href="#footnote-7">[7]</a></a>). It is therefore a strong and structuring element towards a standardization of the green bonds market.This “Gold standard” is broken down into four crucial requirements:<ol><li>Projects should be aligned with the EU taxonomy, contributing to one of the six environmental objectives, complying with the DNSH<a class="footnoteLink" href="#footnote-8">[8]</a> principle and the Minimum Social Safeguards, and satisfying the Technical Screening Criteria as defined in the taxonomy (for more clarity on environmentally sustainable activities on the two first criteria, see the insightful Taxonomy Compass<a href="https://ec.europa.eu/sustainable-finance-taxonomy/index.htm"><a class="footnoteLink" href="#footnote-9">[9]</a></a>).</li><li>Full transparency required with detailed reporting on the use of proceeds: Issuers will need to fill in an EU GB factsheet, annual allocation reports, a post-issuance review report, an impact report with explanations on environmental impacts, and a prospectus which explicitly states the underlying objectives.</li><li>External reviewers will check that each EU green Bond comply with the standard’s requirements.</li><li>A standardized supervision of external reviewers by the ESMA –European Securities and Market Authorities– will ensure the accreditation of companies and individuals acting as examiners.</li></ol>These requirements are a major step forward for improving transparency in the green financing market. This high-quality Green Bond standard will provide investors with the assurance to contribute to the low-carbon transition. However, with the daunting process and significant costs associated with issuing an EU GBS, issuers could believe that the advantages of reaching new investors might not outweigh the related costs.&nbsp; &nbsp;<h3>Additional quantitative measurement is key as to understand the impact of Green Bonds for investors</h3>Carbon4 Finance is a recognized carbon data expert, providing an independent climate impact assessment of green bonds and their contribution to a low-carbon economy. For investors, our green bonds solution is a way to ensure a bottom-up analysis of a bond’s climate impact is conducted.Through our green bonds offer, we quantify the climate impact of green bonds. We provide induced emissions on Scopes 1&amp;2 but also Scope 3 emissions, which are crucial in tackling the climate crisis (as underlined in our recent article<a class="footnoteLink" href="#footnote-10">[10]</a>).In addition to understanding that a particular bond is really green, the Carbon4 Finance’s green bonds methodology provides a concrete quantitative measurement of the degree of contribution, via the avoided emissions. For example, it can be emissions avoided thanks to the use of an entity’s products compared to other products available on the market (e.g., EVs compared to thermal engines, or biofuel compared to conventional fossil fuels). A company avoids emissions if there is a gap between the induced emissions of the company and the reference situation, as illustrated in the figure below<figure class="image"><img src="https://strapipreprod.s3.eu-west-3.amazonaws.com/visuel_2_1_768x797.png"><figcaption>Illustrating avoided emissions</figcaption></figure><figure class="image"><img src="http://www.carbon4finance.com/wp-content/uploads/2021/10/visuel-2-1-987x1024.png" alt="" srcset="http://www.carbon4finance.com/wp-content/uploads/2021/10/visuel-2-1-987x1024.png 987w, http://www.carbon4finance.com/wp-content/uploads/2021/10/visuel-2-1-289x300.png 289w, http://www.carbon4finance.com/wp-content/uploads/2021/10/visuel-2-1-768x797.png 768w, http://www.carbon4finance.com/wp-content/uploads/2021/10/visuel-2-1.png 1347w" sizes="100vw" width="293"></figure>Building on the two previous indicators, the Carbon Impact Ratio (CIR) provides information on the carbon impact of a company or portfolio to the energy transition. The CIR is the ratio of emissions savings (avoided emissions) to induced emissions. This indicator represents the capacity of a project to reduce GHG emissions compared to emissions induced by its activity.Our proprietary methodology is based on project analysis: we review each project financed by a green bond, then results are consolidated at the bond level. We focus on renewable energy projects (both generation and T&amp;D), energy efficiency projects in real estate, and low-carbon transport infrastructures (rail, bus and bike) and offerings (EVs). A transparency score provides information on the level of detail in green Bond reporting documents.Carbon4 Finance green bonds methodology is a five-steps analyst-driven climate assessment<figure class="image"><img src="https://strapipreprod.s3.eu-west-3.amazonaws.com/visuel_3_1.png"></figure>If you would like to know more about our Green Bonds database, please contact our team at <a href="mailto:contact@carbon4finance.com">contact@carbon4finance.com</a>.<h3>In practice: Climate Awareness Bonds launched &nbsp;&nbsp;&nbsp;&nbsp;by the European Investment Bank</h3>This Green Bond (GB), issued in October 2019, is part of the EIB GB program launched in 2007. Bonds are named Climate Awareness Bonds (CAB). Proceeds of this bond finance projects related to renewables energy, T&amp;D, Sustainable transportation, Building construction &amp; Energy efficiency.&nbsp;<figure class="image"><img src="https://strapipreprod.s3.eu-west-3.amazonaws.com/visuel_4_2.png"></figure>&nbsp;On October 22nd, Carbon4 Finance organized a webinar on the matter.<a href="https://www.youtube.com/watch?v=F1ZhccqKXXk">Watch the replay</a><a href="https://strapipreprod.s3.eu-west-3.amazonaws.com/288_the_eu_green_bond_standard_a_game_changer_in_the_low_carbon_transition.pdf">Download the presentation</a>

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<a href="https://www.climatebonds.net/2021/08/climate-bonds-updates-2021-green-forecast-half-trillion-latest-h1-figures-signal-new-surge">https://www.climatebonds.net/2021/08/climate-bonds-updates-2021-green-forecast-half-trillion-latest-h1-figures-signal-new-surge</a>

<a href="https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52021PC0391">https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52021PC0391</a>

Ambition to become the first Climate neutral continent, and this by 2050. See <a href="https://ec.europa.eu/info/strategy/priorities-2019-2024/european-green-deal/delivering-european-green-deal_en">https://ec.europa.eu/info/strategy/priorities-2019-2024/european-green-deal/delivering-european-green-deal_en</a>

<a href="https://ec.europa.eu/info/strategy/priorities-2019-2024/european-green-deal/delivering-european-green-deal_en#documents">https://ec.europa.eu/info/strategy/priorities-2019-2024/european-green-deal/delivering-european-green-deal_en#documents</a>

<a href="https://twitter.com/vonderleyen/status/1412410637209280517">https://twitter.com/vonderleyen/status/1412410637209280517</a>

A Technical Expert Group on sustainable finance (TEG) was mandated as to provide recommendations on EU GBS. These were provided through two reports in 2019 and 2020.

Carbone 4, La Taxonomie européenne : pièce centrale de la stratégie réglementaire européenne pour une finance durable, <a href="https://www.carbone4.com/analyse-taxonomie-europeenne">https://www.carbone4.com/analyse-taxonomie-europeenne</a>, July 2021.

<a href="https://ec.europa.eu/sustainable-finance-taxonomy/index.htm">https://ec.europa.eu/sustainable-finance-taxonomy/index.htm</a>

Carbon4 Finance, the key to facing the energy transition is Scope 3, <a href="http://www.carbon4finance.com/article-scope-3/">http://www.carbon4finance.com/article-scope-3/</a>, July 2021.

The EU Green Bond Standard, a game changer in the low-carbon transition?

As financial institutions are seeking to understand the underlying risks and opportunities posed by the low-carbon transition, investment strategies have commonly integrated “Scope 1” emissions, i.e., direct emissions from activities, and “Scope 2” emissions, i.e. indirect emissions from the production of electricity, heat, and steam purchased. In contrast, Scope 3 emissions stemming from the entire value chain (from freight, purchase of raw materials to the use of sold products), have not yet been factored in most low-carbon investment strategies. However, when a company’s carbon footprint excludes Scope 3, it does not allow to properly identify risks and opportunities. With the growing policymakers’ interest for its disclosure and the recent ExxonMobil and Shell cases making the headlines, the integration of Scope 3 is not a “why” question for investors anymore, but rather a “when”.<figure class="image"><img src="https://strapipreprod.s3.eu-west-3.amazonaws.com/1_1024x349.png"></figure><figure class="image"><img src="http://www.carbon4finance.com/wp-content/uploads/2021/07/1-1024x349.png" alt="" srcset="http://www.carbon4finance.com/wp-content/uploads/2021/07/1-1024x349.png 1024w, http://www.carbon4finance.com/wp-content/uploads/2021/07/1-300x102.png 300w, http://www.carbon4finance.com/wp-content/uploads/2021/07/1-768x262.png 768w, http://www.carbon4finance.com/wp-content/uploads/2021/07/1.png 1062w" sizes="100vw" width="578"></figure>If Scope 3 emissionshave gained such attention, it is partly due to its massive downstream impact in the Automotive and the Oil &amp; Gas industries. In the Automotive sector, Scope 3 emissions have a considerable influence, as it accounts for 95% of the total induced emissions. In the Oil &amp; Gas industry, Scope 3 alone represents 85% of emissions <a class="footnoteLink" href="#footnote-1"><a class="footnoteLink" href="#footnote-1">[1]</a></a> of the industry. Shell, for instance, has 90% of its emissions stemming from its supply chain and the use of its products. &nbsp;<figure class="image"><img src="https://strapipreprod.s3.eu-west-3.amazonaws.com/Example_of_Royal_Dutch_Shell_PLC_white_768x977.png"></figure><figure class="image"><img src="http://www.carbon4finance.com/wp-content/uploads/2021/07/Example-of-Royal-Dutch-Shell-PLC-white-805x1024.png" alt="" srcset="http://www.carbon4finance.com/wp-content/uploads/2021/07/Example-of-Royal-Dutch-Shell-PLC-white-805x1024.png 805w, http://www.carbon4finance.com/wp-content/uploads/2021/07/Example-of-Royal-Dutch-Shell-PLC-white-236x300.png 236w, http://www.carbon4finance.com/wp-content/uploads/2021/07/Example-of-Royal-Dutch-Shell-PLC-white-768x977.png 768w, http://www.carbon4finance.com/wp-content/uploads/2021/07/Example-of-Royal-Dutch-Shell-PLC-white.png 1206w" sizes="100vw" width="326"></figure>If investors are willing to gain a holistic picture of a company’s carbon footprint, have a credible impact in the fight against climate change, and properly identify the risks that can arise all along the value chain, leaving Scope 3 emissions aside would mean missing out most of the energy transition case. As the study <a class="footnoteLink" href="#footnote-2">[2]</a> on consistency corporate carbon emissions data notes, it is “only based on the entire life-cycle emissions, [that] investors can capture the full carbon performance and climate responsibility of an individual asset or investment”.Beyond investors’ willingness to address climate change, Scope 3 adoption could prevent from severe financial impacts caused by stranded assets. Stranded assets are investments that may suffer unanticipated write-downs, devaluations, or conversions to liabilities. Environmental risk factors that could lead to asset impairment include environmental changes (e.g., natural disasters, global warming), heavier regulation (e.g., move to ban diesel cars in Europe, carbon pricing, carbon bubble), technological advances (e.g., increased cost effectiveness of solar panels or wind farms), or changing social norms (e.g., fossil fuel divestment campaigns, consumer behavior). With the integration of value chain emissions (Scope 3) in investment decision making, investors are taking a forward-thinking approach towards the risks of stranded assets, thus avoiding heavy consequences on financial performances.One could also argue that there is a possible fiduciary risk when not integrating Scope 3. Indeed, ignoring (the largest) part of a company’s emissions means to deliberately decide not to assess the full consequences of climate risks. As a result, not considering Scope 3 emissions in an investment decision is to turn a blind eye to potential financial outcomes, failing to adequately assess the entire spectrum of risks investors are exposed to. &nbsp;<h4>Scope 3 emissions: Complex to measure, impossible to ignore</h4>Although a company is not directly responsible for these indirect emissions per se, it relies on the activities triggering these emissions. If some emissions belonging to the value chain become constrained, it will definitely hinder the operations of the company. Symmetrically, through engaging with suppliers and clients, the company can leverage a positive influence towards the reduction of their own emissions, that will in turn lower the transition risk for the global society. In addition to being the largest component in the GHG emissions bill, Scope 3 emissions reflect how closely intertwined the actors are together.<figure class="image"><img src="https://strapipreprod.s3.eu-west-3.amazonaws.com/graph_3_scope_3_768x716.png"></figure>Looking at the graph above <a class="footnoteLink" href="#footnote-3">[3]</a>, it is striking that Scope 3 emissions from Financial Institutions (banks, insurers, asset managers, holdings, etc.) make up most of their overall climate impact. Indeed, their Scope 3 emissions embed the Scope 1&amp;2 and Scope 3 emissions from their portfolio. It gives a clear view that institutions have a direct responsibility towards their financed emissions.As to accurately calculate the Scope 3 within each sector, Carbon4 Finance data are based on bottom-up analyses, and on physical flows (e.g., number of barrels of oil produced for an oil company) <a class="footnoteLink" href="#footnote-4">[4]</a>. In the Oil and Gas sector for instance, our team calculates Scope 3 downstream emissions from the combustion of sold products –barrels of oil, or cubic meters of gas. This equips investors with a credible tool to identify high stakes sectors in which supply chain GHG emissions cannot be ignored.&nbsp; &nbsp;<h4>Recognizing “real” climate leaders</h4>Another key reason for adopting the widespread integration of Scope 3 in investment decisions is to help identify risks and opportunities within each sector individually. As value chain emissions adequately reflect the intertwined links of a company with its environment, it can stand as a lever for investors to further embed climate change mitigation in their investment strategy.The example of the Energy Equipment sector, as a high contributor to the energy transition, illustrates the value of Scope 3 emissions for investors. TechnipFMC (based in UK) and First Solar Inc (based in the US) are both energy equipment manufacturers, supplying equipment to the Oil &amp; Gas, Electricity Generation and Electricity Transmission &amp; Distribution and Storage industries. While the former offers a portfolio of solutions for the production and transformation of hydrocarbons, the latter provides PV solar energy solutions.When comparing Scope 1&amp;2 emissions, a traditional investor sticking to these two scopes (and only considering carbon credentials), would have a rather similar investment approach for both companies.<figure class="image"><img src="https://strapipreprod.s3.eu-west-3.amazonaws.com/test_Comparison_Scope_12_induced_emissions_white_768x822.png"></figure><figure class="image"><img src="http://www.carbon4finance.com/wp-content/uploads/2021/07/test-Comparison-Scope-12-induced-emissions-white-957x1024.png" alt="" srcset="http://www.carbon4finance.com/wp-content/uploads/2021/07/test-Comparison-Scope-12-induced-emissions-white-957x1024.png 957w, http://www.carbon4finance.com/wp-content/uploads/2021/07/test-Comparison-Scope-12-induced-emissions-white-280x300.png 280w, http://www.carbon4finance.com/wp-content/uploads/2021/07/test-Comparison-Scope-12-induced-emissions-white-768x822.png 768w, http://www.carbon4finance.com/wp-content/uploads/2021/07/test-Comparison-Scope-12-induced-emissions-white.png 1024w" sizes="100vw" width="307"></figure>Looking at the whole value chain of the two manufacturers, the overall carbon performances completely differ. While TechnipFMC Scope 3 downstream emissions mainly result from the combustion of oil and gas extracted and refined using the company’s products, most of First Solar Scope 3 emissions are limited to the upstream emissions associated with the purchase of raw materials needed to manufacture solar panels. TechnipFMC Scope 3 emissions amount to more than 99% of its total induced emissions, while First Solar Scope 3 emissions are 30 times lower and account for 70% of its total induced emissions.<figure class="image"><img src="http://www.carbon4finance.com/wp-content/uploads/2021/07/Comparison-Scope-3-induced-emissions-white-1024x1022.png" alt="" srcset="http://www.carbon4finance.com/wp-content/uploads/2021/07/Comparison-Scope-3-induced-emissions-white.png 1024w, http://www.carbon4finance.com/wp-content/uploads/2021/07/Comparison-Scope-3-induced-emissions-white-150x150.png 150w, http://www.carbon4finance.com/wp-content/uploads/2021/07/Comparison-Scope-3-induced-emissions-white-50x50.png 50w" sizes="100vw" width="315"></figure><figure class="image"><img src="https://strapipreprod.s3.eu-west-3.amazonaws.com/Comparison_Scope_3_induced_emissions_white.png"></figure>This simple case study shows that the traditional focus on Scope 1&amp;2 emissions leads to misleading impact and risk assessments. And this is one of many examples, with similar comparisons existing in the Automotive, aeronautical, or even Agrobusiness sectors. Our platform displays insights over thousands of companies’ carbon performances as we provide Scope 3 emissions data most material to each company’s business.<h4>Achieving global net zero with Scope 3 emissions reduction targets</h4>As mentioned in the Net Zero Initiative Report <a class="footnoteLink" href="#footnote-5">[5]</a>, to contribute to global emissions reduction, Scope 1&amp;2 emissions reduction target alone does not demonstrate a company’s level of understanding of the challenges in the transition to a decarbonized economy. As in most sectors the largest sources of emissions on which an activity depends lie in upstream and downstream Scope 3 emissions, companies should address this by setting ambitious reduction targets across their value chain. As a global response to the climate change crisis is more than necessary, setting Scope 3-related targets are determinant to shift to a low carbon economy, and lower the risk of being out of business should a constraint happen upstream or downstream.Although the Scope 3 is not yet a broadly integrated criteria, its adoption or inclusion by investors demonstrate their understanding over the risks faced by companies with increasing public scrutiny and rising carbon prices. Not only does it allow to assess the risks, but it also pinpoints the opportunities which arise in the low-carbon transition. Companies with lower Scope 1, 2 and 3 emissions, and with ambitious direct and indirect emissions reduction target, will be considered as real climate leaders. &nbsp;<h4>Scope 3 emissions, in practice</h4>Our clients provided feedback on the use of Scope 3 emissions in their sustainable investment strategy.David CZUPRYNA, Head of ESG Development at Candriam“There is a growing realisation amongst investors that, in order to measure a company’s impact on climate, we need to look at its entire value chain and not just the way it operates. Candriam’s ESG analysis already incorporates Scope 3 data in sectors where such data is the most decisive. However, the number of companies providing systematic and comprehensive Scope 3 data is still just a fraction of those reporting on their Scope 1 &amp; 2. Getting companies to fully disclose Scope 3 would enable investors to also integrate them in their reporting, as will become mandatory in the EU under SFDR level 2 for article 8 &amp; 9 financial products.Systematic disclose of robust Scope 3 data will provide us, investors, with the breadth and depth of data to fully and genuinely integrate climate risks and opportunities within our models.”Ladislas SMIA, Head of Sustainability Research at Mirova“The financial sector needs climate data to understand the consequences of climate change on financial performance and to allocate capital towards companies and projects with positive impacts. In both cases, only data that takes into account both positive and negative impacts over the entire life cycle can properly capture the links between the economy and climate. This data exists today. Investors must seize it, to report on their climate performance of course, but above all to integrate it into their investment process.”

Carbon data analyst

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<a href="http://www.carbon4finance.com/wp-content/uploads/2021/01/The-Oil-Industry-Publication-Carbon4-Finance.pdf">http://www.carbon4finance.com/wp-content/uploads/2021/01/The-Oil-Industry-Publication-Carbon4-Finance.pdf</a>

<a href="https://ec.europa.eu/jrc/sites/default/files/paper_timo_busch.pdf">https://ec.europa.eu/jrc/sites/default/files/paper_timo_busch.pdf</a>

Double counting – which takes place when the same amount of GHG emissions is counted more than once in a portfolio/industry – is directly addressed by the CIA methodology. Indeed, it reprocesses the total figure of GHG emissions in each sector by allocating one third of emissions to each of the three main categories of actors in the global economy – energy suppliers (1), companies providing equipment and solutions (2), and energy intensive companies using these equipments and solutions (3). For more information, see this article.

<a href="http://www.carbone4.com/wp-content/uploads/2019/09/CarbonImpactAnalytics_November18.pdf">http://www.carbone4.com/wp-content/uploads/2019/09/CarbonImpactAnalytics_November18.pdf</a>

<a href="http://www.carbone4.com/wp-content/uploads/2020/04/Carbone-4-Referentiel-NZI-avril-2020.pdf">http://www.carbone4.com/wp-content/uploads/2020/04/Carbone-4-Referentiel-NZI-avril-2020.pdf</a>&nbsp;&nbsp;

The key to facing the energy transition is Scope 3

<h3>Context</h3>The Coronavirus crisis has shown in a very material way how the interconnection between extra-financial and financial risks is more decisive than ever to build the next world. In particular the integration of ESG dimensions and climate policies has become both a case for environmental and financial stability. “The authorization for a company to exist in tomorrow’s world will depend on its ability to find a business model compatible with the finite resources of the planet,” said Fabrice Bonnifet, President of the College of Directors of Sustainable Development.Companies that contribute positively to the climate transition are generally better prepared to face this type of crisis because they position themselves on the most relevant markets and technologies in the long term.More than ever, going beyond short-term management is becoming a necessity in a world in the midst of physical, economic and regulatory upheavals induced by climate change. Thinking about ruptures is an imperative in the strategic thinking of a company, in order to ensure sustainable performance and resilience of its activity.<h3>The Low Carbon 100 Europe®&nbsp;index: a low carbon approach that continues to prove itself</h3>The BNP Paribas Easy Low Carbon 100 Europe ETF and its benchmark, the Low Carbon 100 Europe®, have performed very well considering the current health crisis.

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These good performances stem from the composition of the benchmark index, the Low Carbon 100 Europe®. The index is made up of 100 very liquid European companies selected according to their environmental approach and based on the Carbon Impact Analytics (CIA) methodology developed by Carbone 4 and the data provided by Carbon4 Finance.The index is composed of European companies selected as they are considered best placed in relation to the climate issue compared to other companies. Since October 2008 (date of creation of this ETF), the performance of this index has been far superior to that of many European indices which do not have this low carbon filter.The BNP Paribas Easy Low Carbon 100 Europe ETF stands out with ‘flattering rankings over all periods’, according to Quantalys. Thus, it is part of the first decile of European equity funds over 10 and 3 years, and part of the first quarter over 8 and 5 years. Over the last period, it has beaten its category average by almost 2 points a year. It generally resists downward phases very well, since it also lost only 1.8% in 2011 and 7.6% in 2018. According to Quantalys’ qualitative analysis, it does not show any weakness whatever the market configuration.<h3>About the Low Carbon 100 Europe®&nbsp;index</h3>Euronext was the first stock exchange operator to launch a pan-European CO2 emission index in 2008, designed specifically with the support of a group of international experts, and in close partnership with NGOs.Euronext then partnered in 2015 with the firm Carbone4, specializing in low-carbon strategies, to renew the methodology. The latter is based on a more efficient approach to measuring corporate climate performance and offers a unique index solution for investors.The new version of the index developed with Carbone 4 is based on a more in-depth assessment of the carbon footprint of each company, assessed across the entire value chain. This method has thus made it possible, for the first time, to identify the companies which are making a positive contribution to the climate transition, not only through their operational performance, but also, where appropriate, thanks to the products sold to their customers. Finally, the selection of companies in the index also takes into account the level of emissions avoided thanks to their efforts to innovate products and services.Several years before the requests of the European Commission on the construction of Climate indices (Climate Transition Benchmark, CTB) and indices “aligned” with the Paris Agreement (Paris-Aligned Benchmark, PAB), the Low Carbon index 100 Europe® was the first in the world built to reflect an investment trajectory compatible with the 2 degrees pathway. It therefore allows investors to already benefit from a very good track record compared to the new indices launched recently. The conformity of the Low Carbon 100 Europe® index with the latest TEG and PAB aligned recommendations will therefore be formalized in the coming weeks.Drawing on this experience, Carbon4 Finance aims to build numerous climate indices for the new CTB and PAB ranges using its own data.&nbsp;<h3>About Carbon4 Finance</h3>Launched in 2016, Carbon4 Finance brings to the financial sector the expertise of the consulting firm Carbone 4, which since 2007 has provided services in carbon accounting, scenario analysis and advice in all economic sectors.Carbon4 Finance offers a complete set of climate risk analyses:<ul><li>Transition risk (CIA Methodology: Carbon Impact Analytics): financial risks resulting from the adjustment process towards a low-carbon economy (policy changes, new technologies, etc.)</li><li>Bottom-up analysis: an in-depth analysis of each underlying asset in a portfolio, followed by aggregation at the portfolio level</li><li>Sectoral approach: indicators and specific calculation modules by sector</li><li>Comprehensive measurement of the carbon impact of the portfolio: recalculations of the entire carbon footprint (scopes 1, 2 and 3) thanks to the sectoral modules</li><li>Calculation of sectoral physical indicators: green share, brown share, energy mix etc.</li><li>Climate Strategy Indicator: qualitative and quantitative analysis of a company’s investments towards a low-carbon strategy.</li><li>Beyond the carbon footprint, an assessment of the contribution to climate change mitigation: calculation of the emissions saved (avoided and reduced) and calculation of the alignment of a portfolio with climate scenarios.</li><li>Physical risk (CRIS Methodology: Climate Risk Impact Screening): impacts on the value of financial assets that arise from events related to climate and weather conditions (floods, droughts, storms, etc.)</li></ul>

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The resilience of the Euronext Low Carbon 100® index towards the Coronavirus crisis

Le rapport de Greenpeace “Bilan Carbone de TotalEnergies : le compte n’y est pas”<a class="footnoteLink" href="#footnote-1">[1]</a> publié en novembre dernier interroge fortement la comptabilité carbone de TotalEnergies. En effet, l’ONG évalue l’empreinte carbone de TotalEnergies autour de 1 650 MtCO2e, soit près de 4 fois plus que les chiffres déclarés par l’entreprise pour ses activités en 2019.&nbsp; Comment expliquer une telle différence ?<h3>Résumé</h3>

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Le périmètre très différent de comptabilité des émissions indirectes explique l’écart de chiffres entre ceux avancés par TotalEnergies et par Greenpeace : 75% de l’écart provient de la prise en compte des activités de trading ; 25% de toutes les émissions indirectes restantes. Même si compter 100% des émissions associées aux activités de trading peut se justifier, il est pertinent de les pondérer différemment des activités purement «&nbsp;physiques&nbsp;». C’est ce que propose la méthodologie de Carbon4 finance en pondérant les émissions des différentes activités au prorata de leur contribution à la valeur ajoutée. Les émissions de trading sont ainsi fortement atténuées.

<h3>Que disent les standards internationaux de comptabilité carbone ?</h3>Pour commencer, rappelons que compter les émissions de gaz à effet de serre d’une entreprise a, entre autres, pour objectif de mesurer l’exposition de sa chaîne de valeur aux énergies fossiles, et donc de mettre en lumière une “double matérialité” de ces émissions. C'est-à-dire à la fois une part de responsabilité dans le dérèglement climatique mondial mais aussi un lien de dépendance, facteur de risque dans un monde qui doit réduire drastiquement ses émissions pour respecter l’Accord de Paris.C’est pour cette raison que le standard international qu’est le GHG Protocol, demande de comptabiliser toutes les sources significatives<a class="footnoteLink" href="#footnote-2">[2]</a> d’émissions de gaz à effet sur le cycle de vie de l’activité d’une entreprise. Dès lors, il faut compter les émissions directes de l’entreprise (ex : l’énergie consommée dans l’usine ou les bureaux) mais aussi les émissions indirectes amont (ex : extraction et transformation des matières premières) et les émissions indirectes aval (ex : consommation d’énergie des produits vendus).

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Principaux postes d’émissions de l’empreinte carbone

Dans l’industrie pétrogazière, viennent d’abord les émissions liées aux activités “physiques” de l’entreprise : principalement, l’extraction du gaz et du pétrole, son transport, sa transformation (ex : raffinage pour le pétrole), et la combustion du pétrole et du gaz vendu<a class="footnoteLink" href="#footnote-3">[3]</a>. Certaines entreprises possèdent aussi des activités de trading. Autrement dit, elles vendent et achètent du pétrole et du gaz qu’elles n’ont pas produit. C’est le cas de TotalEnergies.Dans ce cadre, le GHG Protocol considère différemment les activités de trading et les activités “physiques” de l’entreprise. En effet, est indiqué que le reporting des émissions liées aux activités de trading est optionnel<a class="footnoteLink" href="#footnote-4">[4]</a> quand celui des activités physiques est obligatoire.<h3>Trois manières de compter pour trois résultats différents</h3><h4>Synthèse&nbsp;</h4>

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<h3>Que compte TotalEnergies ?&nbsp;</h3>TotalEnergies suit les directives de l’Ipieca<a class="footnoteLink" href="#footnote-5">[5]</a>, association mondiale de l'industrie pétrolière et gazière pour les questions environnementales et sociales, qui sont validées par le GHG Protocol.&nbsp;La méthodologie<a class="footnoteLink" href="#footnote-6">[6]</a> proposée par l’Ipieca recommande de reporter, a minima, les émissions indirectes du volume d’énergie le plus important dans sa chaîne de valeur : la quantité d’énergie extraite, la quantité d’énergie transformée (raffinage pour le pétrole, liquéfaction pour le gaz), et la quantité d’énergie vendue. En effet, cela permet d’éviter les doubles-comptages : par exemple, ne pas compter deux fois les émissions de combustion de l’énergie extraite et de cette même énergie quand elle est vendue.&nbsp;L’Ipieca indique également que le reporting des émissions liées à l’achat et à la vente de combustibles fossiles à des utilisateurs non finaux, soit le trading, est optionnel.&nbsp;Dans ce cadre, TotalEnergies ne comptabilise pas les émissions liées au trading. Concernant les émissions indirectes de ses activités “physiques” (les émissions générées par d’autres acteurs de sa chaîne de valeur pour permettre la vente de l’ensemble de son pétrole et de son gaz), TotalEnergies ne considère que celles liées à la combustion du pétrole et du gaz<a class="footnoteLink" href="#footnote-7"><a class="footnoteLink" href="#footnote-7">[7]</a></a>, en retenant la plus grande quantité d’énergie dans sa chaîne de valeur, à savoir celle correspondant aux ventes de produits pétroliers et gaziers (3,1 Mboe/j), conformément aux recommandations de l’Ipieca. Même si ces émissions de combustion constituent plus de 80% des émissions indirectes “physiques”, les émissions liées à l’achat de produits et de services, au transport ou au traitement de fin de vie des produits vendus comme le plastique restent significatives en valeur absolue et ne sont ainsi pas publiées dans le rapport annuel.<h3>Que compte Greenpeace ?&nbsp;</h3>En plus des émissions de combustion du pétrole et du gaz vendu (comptabilisées par TotalEnergies) en utilisant la même méthodologie que celle proposée par l’Ipieca, Greenpeace considère toutes les autres sources d’émissions indirectes (émissions amont du pétrole et du gaz vendu mais non produit, du transport, du traitement de fin de vie des produits vendus, etc.) ainsi que les activités de vente à des tiers, qui s’apparentent à du trading.&nbsp;Cette différence de périmètre explique l’écart entre les chiffres de TotalEnergies et de Greenpeace : 75% de la différence provient de la prise en compte des activités de trading ; 25% d’un périmètre plus large pour les activités “physiques” avec notamment la prise en compte de toutes les émissions indirectes significatives<a class="footnoteLink" href="#footnote-8"><a class="footnoteLink" href="#footnote-8">[8]</a></a>.Greenpeace met ainsi sur le même plan de responsabilité les activités “physiques” et de trading car “Les émissions de gaz à effet de serre de TotalEnergies sont l’ensemble des émissions auxquelles elle contribue, ou dont elle est responsable”.&nbsp;<h3>Que compte Carbon4 Finance ?&nbsp;</h3>Cette dernière interprétation a du sens, dans la mesure où elle qualifie la dépendance aux émissions de gaz à effet de serre d’une entreprise, aussi appelée risque de transition. En revanche, elle manque de nuance car ces deux types d’activités relèvent de logiques physiques et opérationnelles profondément différentes.&nbsp;Carbon4 Finance<a class="footnoteLink" href="#footnote-9"><a class="footnoteLink" href="#footnote-9">[9]</a></a> capture ces nuances dans sa méthodologie Carbon Impact Analytics. L’approche consiste à pondérer les émissions d’une activité (ex : le trading, l’extraction ou la vente) par sa part de valeur ajoutée dans la chaîne de valeur. Cela offre deux avantages. D’une part, cela permet de comprendre la contribution de chaque activité de l’entreprise à ses émissions, et d’autre part la double matérialité (responsabilité et dépendance) de l’entreprise est mieux représentée car aucune activité n’est ignorée.&nbsp;A titre d’illustration sur les émissions indirectes liées à la combustion aval du pétrole et du gaz, elles sont calculées de façon intermédiaire sur l’ensemble des postes de la chaîne de valeur : production, trading, transport, raffinage, distribution, stockage, et vente. Les chiffres retenus par Greenpeace sont d'ailleurs en ordre de grandeur similaires à ces calculs intermédiaires utilisés par la méthodologie Carbon Impact Analytics. Ensuite, chaque poste d'émissions est retraité : on module les émissions au prorata de la part de valeur ajoutée de l’activité sous-jacente de l’entreprise au sein de la chaîne de valeur. On obtient alors une contribution représentative des émissions par poste tout en évitant les double-comptes. Les émissions liées à l’activité de trading sont ainsi fortement atténuées.<h2>Conclusions&nbsp;</h2>Cette controverse en témoigne, la comptabilité carbone gagne en importance dans le débat public. Désormais, entreprises, investisseurs, Etats, ONG, toutes les parties prenantes utilisent la même grammaire pour appréhender ces enjeux fondamentaux.&nbsp;&nbsp;Le premier enjeu est celui de la transparence. Toutes les parties prenantes militent pour que les entreprises communiquent sur leurs activités avec le maximum de précision et de détail. Sur ce plan, les concurrents de TotalEnergies se positionnent encore de diverses manières. D’un côté, ExxonMobil publie de façon très détaillée sa méthodologie de comptabilité des émissions indirectes. De l’autre côté, Shell va beaucoup plus loin que les recommandations de l’Ipieca en publiant 100% de ses émissions liées à la vente de produits dans le cadre de ses activités de trading. Les acteurs de l’industrie pétrogazière ont progressé depuis peu en matière de&nbsp; transparence, mais il existe encore des points d’amélioration comme en atteste la comparaison entre eux.La disponibilité de chiffres comptables précis, qu’ils soient financiers ou climatiques, n’est que la première partie du travail. Vient ensuite le temps de l’interprétation et du débat pour qualifier le mérite de l’entreprise au regard des enjeux climatiques. C’est bien là le plus important, et il ne faudrait pas que s’instaure un débat technique artificiel sur les périmètres et les ordres de grandeur alors même que les outils communs existent pour s’entendre.Gardons en tête que compter pour compter n’a aucune utilité. Au-delà de la différence de périmètres qui explique l’écart de chiffres, l’essentiel réside ailleurs. Il s’agit, avant tout, d'adopter une démarche transparente et ambitieuse vis-à-vis du dérèglement climatique. L’Accord de Paris, c’est réduire nos émissions de gaz à effet de serre de -5% par an. Pas de miracle, les énergies fossiles doivent suivre le même chemin. Et le doute est permis pour l’industrie pétrolière comme en témoigne la revue sectorielle de Carbon4 Finance : “The oil industry: is it up to the climate challenge?”<a class="footnoteLink" href="#footnote-10">[10]</a>.

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https://cdn.greenpeace.fr/site/uploads/2022/11/Rapport-Greenpeace_Bilan-carbone-Total_VDEF.pdf

Les activités peuvent être considérées comme non significatives et être exclues de la comptabilité de l’entreprise si la quantité d’émissions est très faible par rapport aux autres sources d'émissions et/ou si l'exclusion de l'activité ne compromet pas la pertinence de l'inventaire déclaré

Le plastique ne subit pas le même sort que la combustion de l’énergie en fin de cycle mais doit être traité comme un déchet (ex : incinération, enfouissement)

“reporting emissions from fuel purchased for resale to non-end users is optional” - GHG Protocol Corporate Standard guidance

https://www.ipieca.org/

https://www.ipieca.org/resources/good-practice/estimating-petroleum-industry-value-chain-scope-3-greenhouse-gas-emissions-overview-of-methodologies/

On parle de Scope 3 pour les émissions indirectes et de la Catégorie 11 pour l’utilisation des produits vendus

&nbsp;Une différence significative d’émissions directes est également présente : 46 MtCO2e pour TotalEnergies contre 161 pour Greenpeace. Cette différence est intégrée dans les 25%.

&nbsp;Carbon4 Finance agit comme un bureau de recherche qui produit des données environnementales à destination des acteurs financiers. Dans ce cadre, sont compilées ou calculées les émissions de gaz à effet de serre des entreprises cotées. Grâce à la méthodologie Carbon Impact Analytics, Carbon4 finance documente un “ordre de mérite” intrasectoriel des entreprises au regard des enjeux climatiques.

&nbsp;https://www.carbon4finance.com/publication-the-oil-industry

TotalEnergies VS. Greenpeace : comptabilité carbone, une affaire de périmètre et de méthode

We provide a comprehensive database of carbon footprints based on our Carbon Impact Analytics (CIA) methodology, thus measuring contribution to the transition towards a low-carbon economy, and the inherent exposure to transition risks. Precise metrics enhance investment decisions, climate risk management, alignment with the low carbon transition and sustainable finance reporting.


Carbon Impact Analytics (CIA) is a methodology for assessing the full climate impact of portfolios through bottom-up measurement of greenhouse gas (GHG) emissions directly and indirectly induced and saved.The method also provides an assessment of the alignment of investor and lender portfolios with a climate-focused strategy.What’s new?For readers already familiar with the latest edition of the CIA methodological guide (2018), here are the main changes we’ve made to our methodology:<ul><li>Company overall rating: In addition to current and forward-looking performance, we also consider the past performance of the company to calculate its overall rating. It now ranges from 1 (best) to 15 (worst).</li><li>Forward-looking qualitative grid: We’ve added a 5th criterion: governance of climate-related risks and opportunities. We also consider the two major activities of the company when conducting the forward-looking analysis.</li><li>Temperature alignment: Alignment is now based on the overall rating ranging from 1 to 15, thus alignment formula was reviewed. As the CIA methodology covers more and more sectors, the dataset used to proxy the world economy grows bigger, thus refining the alignment methodology.</li><li>Portfolio treatment: We now retreat multiple accounting between private (corporate) and public (sovereign) economic sector as well. See methodological guide for more precision</li></ul>

Carbon4 Finance - CIA short version.pdf

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Discover CIA

Download the short version of the methodological guide

Ask the complete version of the methodological guide (50 pages)  

Our latest Carbon Impact Analytics methodological guide

November 5-6 Frankfort ¨November 7-8 ViennaNovember 5th ♦ Deutsche Bank Digital FactoryNovember 6th ♦ TechQuartierNovember 7th ♦ Erste BankNovember 8th ♦ Raiffeisen Bank

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Find out more on the official website

  From November 5thto the 8th2018 we will be present in Frankfurt and Vienna.

Carbon4 Finance is thrilled to announce our participation in the ‘French FinTech Tour Austria and Germany’

In addition to induced emissions, we calculate emissions savings - which comprise reduced emissions based on process efficiency improvement over several years, and avoided emissions resulting from the company’s activities or products.


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Carbon footprint (Scope 1, 2 & 3 ) and emissions savings

Quantitative and qualitative analysis, based on physical flows and climate change strategy, relying on public corporate information. To ensure reliable results, each company is assessed by a climate data analyst, then reviewed by a sectoral expert.


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Holistic view on a company’s performance

Developed by in-house experts, our sectoral methodologies are designed to best capture climate leaders and laggards at industry level.


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Proprietary sector specific methodologies

Assessment of climate change strategy (including GHG reduction targets) using IEA’s transition scenarios.


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Science-based forward-looking analysis

As well as the savoir-faire of Carbone 4, a leading French low carbon strategy consulting firm.


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Leveraging on a team of 20+ climate data analysts

Avoiding emissions double-counting at multiple levels: along the value chain, and at corporate and sovereign levels


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Portfolio level aggregation of emissions 

We are designed to align with leading frameworks (TCFD, SBTi), standards (CBI, GBP) and regulations (Taxonomy, SFDR, EU GBS).


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Compliant with highest ESG reporting standards

Each user has a dedicated analyst to ensure a good use and understanding of our data and solutions.


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Technical support and climate data training 

Based on a proven transition risk methodology, our comprehensive climate data solutions enable investment strategies for the low-carbon transition.


holistic solution for resilience investment

CLIMATE DECISION MAKING 

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Portfolio Temperature & Paris Alignement 

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Carbon Footprint: Scope 1, 2 & 3 emissions, and emissions savings 

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Benchmark against Indices

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Identifying Risks and Opportunities at Portfolio Level

Giving you an at-a-glance overview of your portfolio performance to navigate risk and identify opportunities, while meeting reporting standards. 

powerful analytics platform

CLEAR AND EFFECTIVE VISUALS

Carbon Data & Transition Risks

Carbone 4 group was awarded the 2018 ‘Most Impressive Environmental Impact Consultant’ Award from Global Capital.This award, resulting from a vote of investors, banks and issuers of Green &amp; Sustainable Bonds, rewards the work done by Carbone 4 through its consulting activities (impact reportings) and climate ratings (Carbon4 Finance).Since its creation, Carbone 4 has developed several innovative methods, tools and databases that allow economic players to measure the climate impact of their financing or investments, expressed in terms of avoided emissions or compliance with Paris Agreement’s targets.Carbon4 Finance’s climate rating teams provide international investors with independent assessments of the climate impact of the green bonds available on the market and provide solutions to calculate the alignment of their portfolios with the Paris Agreement. Investors and institutionnals using Carbon4 Finance datasets now represent&nbsp;€ 2.6 trillion&nbsp;in assets under management.For Alain Grandjean,Chairman of Carbone 4 group, “This is a strong acknowledgment from financial market players who value the innovative and thorough approach implemented by Carbone 4 on climate issues”.&nbsp;

2018 SRI GLOBAL CAPITAL PRIZE: Carbone 4 group praised for its expertise on sustainable bonds evaluation

Natixis&nbsp;just became the first bank to integrate corporate climate impact ratings into capital allocation decisions with&nbsp;a new tool called the “green weighting factor”.&nbsp;Financing deals provided by the bank will now undergo an assessment in order to&nbsp;calculate&nbsp;their potential&nbsp;environmental impacts on the climate.“It is based on a highly detailed sector-based methodology whereby each financing transaction is assigned an environmental rating on a seven-level color scale ranging from dark brown to dark green. This rating is derived from an assessment of the deal’s climate impact and factors in any significant non-climate-related environmental externalities including water, pollution, waste and biodiversity. The rating applies to either the asset or project being financed, or to the borrower for general purpose financings, whether a corporate or public sector client. Each color corresponds to an adjustment factor that is applied to the risk-weighted assets of each transaction and is used to assess its expected profitability.”This over a year long project aims to align Natixis’&nbsp;financing deals with the&nbsp;objectives of the Paris Agreement.<a href="https://pressroom-en.natixis.com/news/natixis-rolls-out-its-green-weighting-factor-and-becomes-the-first-bank-to-actively-manage-its-balance-sheets-climate-impact-2dce-8e037.html">Read the article here</a>

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Read the article here

Carbon4 Finance helped to elaborate a new rating method for the French corporate and investment bank Natixis.

Climate impact ratings in the financial sector

Today, the climate impact of companies is assessed through a static indicator: the carbon intensity, which measures, at a given moment, the company’s carbon emissions. To achieve the 2 ° C target of the Paris Climate Agreement, it is also necessary to look at the reality of a company’s strategic and financial commitment to a low carbon transition.&nbsp;The unique metric making possible to quantity this commitment today is the indicator which measures “carbon emission savings”[1]&nbsp;developed by Carbon4 Finance. This is the reason why HSBC Global Asset Management is starting a collaboration with Carbon4 Finance to refine its analysis of the invested companies regarding their climate trajectory.“While measuring the carbon footprint is now quite common, measuring the real impact of companies in the medium to long term is proving difficult. However, we believe that the measurement of “avoided carbon emissions” developed by Carbon4 Finance is an excellent way to assess the climate trajectory of companies and that is why we have chosen to integrate it. This new climate metric may over time play a significant role in our overall process of integrating ESG factors, covering all geographies and all asset classes. “explains Xavier Desmadryl, Global Head of ESG Research &amp; PRI, at HSBC Global Asset ManagementMarie-Anne Vincent, Head of Business Development at Carbon4 Finance, says: “Identifying the real actors towards a low-carbon economy is a key challenge for all investors and we are proud to have been chosen by HSBC Global Asset Management in this initiative, that we hope is illustrative of a new way to manage investments.”What are ‘carbon emission savings’ and why are they so important to consider?In order to evaluate the alignment of a portfolio with the low-carbon transition, it is necessary to look beyond the carbon footprint and identify the opportunities and real actors of the climate transition: for example, by evaluating a company’s capacity to reduce its emissions, by enabling its customers or suppliers to decarbonize theirs, etc.Carbon4 Finance developed an additional indicator within its transition risk methodology, Carbon Impact Analytics, to calculate the emissions savings (scopes 1, 2 and 3) of a company to steer investments towards solutions for a decarbonized economy.Jean-Marc Jancovici, one of Carbon4 Finance partners, says: “to appreciate to what extent a company is resilient, or even favoured by, a low carbon transition, calculating avoided emissions is unavoidable”.A company operating in a highly carbon intensive sector could contribute significantly to decreasing emissions by creating a disruptive product or process. For example, an insulation manufacturer or a bicycle manufacturer can emit a massive volume of greenhouse gas when looking only at the direct emissions, but nevertheless have a very positive contribution to the climate transition over the whole lifetime of their products.The inclusion of emissions savings is crucial in order to help understand how disruptive a company is, either through more efficient processes, or through low carbon products or services.Emissions savings are calculated by adding up the “avoided emissions” (comparing the company to the trajectory of its sector) and the “reduced emissions” of a company (comparing the company with itself over 5 years):<ul><li>avoided emissions are the emissions that are avoided by the company’s products and services; they are calculated by comparing the emissions with a sectorial baseline scenario (i.e. an IEA scenario 2°), or with the substitution by low-carbon solutions. A company avoids emissions if there is a positive gain between the induced emissions of the company on the one hand, and the baseline sectoral emissions scenario on the other hand.</li><li>reduced emissions are the volume of emissions lowered through a process efficiency over a period of time: an emissions reduction is a real decrease of the company’s carbon intensity over 5 years.</li></ul>&nbsp;The “emission savings” indicator is key to understand the real impact of a company. This indicator is a powerful tool in order to identify the companies that have already entered into the climate transition and to measure the company’s action for the low carbon transition, providing figures that are much more meaningful and tangible than all the companies statements that claim carbon neutrality.&nbsp;[1] Emissions savings are calculated by adding up the “avoided emissions” (comparing the company to the trajectory of its sector) and the “reduced emissions” of a company (comparing the company with itself over 5 years)————————————–Media enquiries to:<figure class="table"><table><tbody><tr><td>Charles Clarke</td><td>+44(0) 207 991 8805</td><td><a href="mailto:charleswclarke@hsbc.com">charleswclarke@hsbc.com</a></td></tr><tr><td>Sophie Ricord</td><td>+33 1 40 70 33 05</td><td>&nbsp;<a href="mailto:sophie.ricord@hsbc.fr">sophie.ricord@hsbc.fr</a></td></tr><tr><td>Alexia Soyeux</td><td>+33 1 76 21 10 00</td><td>&nbsp;<a href="mailto:Alexia.soyeux@carbone4.com">Alexia.soyeux@carbone4.com</a></td></tr></tbody></table></figure>This press release is produced by HSBC Global Asset Management and Carbon4 Finance---The information contained herein is subject to change without notice. All non-authorised reproduction or use of this commentary and analysis will be the responsibility of the user and will be likely to lead to legal proceedings. This press release has no contractual value and is not by any means intended as a solicitation, nor an investment advice for the purchase or sale of any financial instrument in any jurisdiction in which such an offer is not lawful. Tax treatment depends on The individual circumstances of each client and may be subject to change in The future. Capital is not guaranteed. It is important to remember that the value of investments and any income from them can go down as well as up and is not guaranteed.The commentary and analysis presented in this document reflect the opinion of HSBC Global Asset Management on the markets, according to the information available to date. They do not constitute any kind of commitment from HSBC Global Asset Management.Consequently, HSBC Global Asset Management will not be held responsible for any investment or disinvestment decision taken on the basis of the commentary and/or analysis in this document.All data from HSBC Global Asset Management unless otherwise specified. Any third party information has been obtained from sources we believe to be reliable, but which we have not independently verified.HSBC Global Asset ManagementHSBC Global Asset Management should be referred to in full at all times to avoid confusion with any other financial services firms.HSBC Global Asset Management, the investment management business of the HSBC Group, invests on behalf of HSBC’s worldwide customer base of retail and private clients, intermediaries, corporates and institutions through both segregated accounts and pooled funds. HSBC Global Asset Management connects HSBC’s clients with investment opportunities around the world through an international network of offices in 25 countries and territories, delivering global capabilities with local market insight. As at 30 June 2020, HSBC Global Asset Management managed assets totalling US$525bn on behalf of its clients. For more information, see&nbsp;<a href="http://www.global.assetmanagement.hsbc.com/">www.global.assetmanagement.hsbc.com/</a> HSBC Global Asset Management is the marketing name for the asset management businesses of HSBC Holdings plc. ——————————————-The HSBC GroupHSBC Holdings plcHSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. HSBC serves customers worldwide from offices in 64 countries and territories in our geographical regions: Europe, Asia, North America, Latin America, and Middle East and North Africa. With assets of US$2,923bn at 30 June 2020, HSBC is one of the world’s largest banking and financial services organisations.——————————————-About Carbon4 FinanceLaunched in 2016 and based in Paris, Carbon4 Finance brings to the financial sector the expertise of the consulting firm Carbone 4, which since 2007 has provided services in carbon accounting, scenario analysis and advice in all economic sectors.Carbon4 Finance offers a complete set of climate data solutions covering both physical risk (CRIS Methodology: Climate Risk Impact Screening) and transition risk (CIA Methodology: Carbon Impact Analytics). These proprietary methodologies allow financial organisations to measure the carbon footprint of their portfolio, assess the alignment with a 2°C-compatible scenario and measure the level of risks that arise from events related to climate change.Carbon4 Finance applies a rigorous “bottom-up” research-based approach, which means that each asset is analysed individually and in a discriminating manner.&nbsp;For more information, please visit&nbsp;<a href="https://carbon4-finance-app-git-trunk-koji-sas.vercel.app/">https://carbon4-finance-app-git-trunk-koji-sas.vercel.app/</a><a href="https://strapipreprod.s3.eu-west-3.amazonaws.com/HSBC_GAM_C4_F_Press_release.pdf">Download the press release</a>&nbsp;

Download the press release

HSBC Global Asset Management collaborates with Carbon4 Finance to refine its analysis of the climate impact of issuers

Carbon4 Finance is among the start-ups selected by Business France to join the <a target="_blank" rel="noopener noreferrer" href="http://events-export.businessfrance.fr/frenchfintech/">“French Fintech tour”</a>, from 3rd to 5th July 2018.The tour, which aims to promote solutions provided by French fintech companies in the British and Irish markets, is an opportunity for Carbon4 Finance to present its solutions to banks, insurers, and asset managers.Carbon4 Finance provides carbon data to enable asset managers, pension funds, banks and index providers to develop and implement investment and financing solutions which are aligned to a 2-degree world.Our solutions:For more information, or to meet us, please feel free to reach out : <a target="_blank" rel="noopener noreferrer" href="mailto:contact@carbon4finance.com">contact@carbon4finance.com</a>

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Carbon4 Finance is among the start-ups selected by Business France to join the “French Fintech tour”, from 3rd to 5th July 2018.

Carbon4 Finance on tour in London and Dublin with Business France

Located in the heart of Frankfurt, TechQuartier provides access to a valuable network of startups, corporates, investors, talents and mentors. TQ not only offers an inspiring place to work and collaborate, but also represents a large community of forward-thinking professionals eager to connect and learn. With its numerous programs and events, TQ’s mission is to provide the tools and resources to innovators so that they can change the world.<a href="https://techquartier.com/greentechhub/">What exactly is the GreenTech Hub? Find out more on the website</a>

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What exactly is the GreenTech Hub? Find out more on the website

Carbon4 Finance is excited to be a part of ‘GreenTech Hub : Frankfurt’s dedicated platform for startups in the green tech, clean energy and sustainable development sectors’

Carbon4 Finance is excited to be a part of GreenTech Hub

Carbon4 Finance is proud to start its collaboration with <a target="_blank" rel="noopener noreferrer" href="http://www.unipolsai.com/en/about-us/corporate-profile">UnipolSai</a>. UnipolSai Assicurazioni S.p.A. is the insurance company of the Unipol Group, the Italian leader in Non-Life business and motor vehicle TPL in particular.UnipolSai becomes our first italian client using Carbon Impact Analytics (CIA).CIA is a <a target="_blank" rel="noopener noreferrer" href="https://www.carbon4finance.com/product/carbon-data">methodology</a> for assessing the full climate impact of portfolios through bottom-up measurement of greenhouse gas (GHG) emissions directly and indirectly induced and saved. The method&nbsp;also provides an assessment of the alignment of investor and lender portfolios with a climate-focused strategy.This methodology can be used to :<ul><li>benchmark your portfolio with a 2°C compliant world</li><li>anticipate regulatory requirements to report on climate risk</li><li>provide reliable and relevant climate data to integrate transition risks into investment or credit decision-making.</li></ul><a href="https://www.carbon4finance.com/product/carbon-data">Read more about our CIA methodology</a>

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January 2020

Latest collaboration

USA&nbsp;With the USA rejoining the Paris Agreement, the country updated its Nationally Determined Contribution (NDC) to hold the global average temperature increase well-below 2°C above pre-industrial levels. After having no set emissions reduction target followed by its withdrawal from the Paris Agreement in 2017, the US has set a rather ambitious target: to reduce its net greenhouse gas (GHG) emissions by 50-52 % below 2005 levels by 2030 and achieve net-zero emissions by 2050, with net GHG emissions including carbon sources as well as sinks, such as sequestration from land use change and forestation. Action to achieve this target include a 100% carbon free electricity sector by 2035, policies to promote “zero emission” passenger vehicles, incentivization of carbon capturing and alternative sources of hydrogen, and investments in reforestation and forest management.GermanyMeanwhile, Germany’s Constitutional Court ruled Germany’s NDC to be insufficient to hold the increase in global temperature to well-below 2°C above pre-industrial levels. The German government responded to the ruling by announcing to cut GHG emissions by at least 65% below 1990 levels by 2030[2] and achieve net-zero emissions by 2040 (compared to the previous target of a 55% reduction from 1990 to 2030 and net-zero emissions by 2050). The country’s NDC is yet to be updated and details on how this will be achieved are yet to be presented but will surely include similar efforts as in the case of the USA.Impact on Carbon4 Finance’s overall rating for these countriesThese announcements impact the two countries’ Carbon Impact Analytics (CIA) ratings. CIA is a methodology to measure the carbon footprint and assess the contribution to climate change mitigation of companies as well as sovereigns. For sovereigns, the CIA overall rating (ranging from 1 = best to 15 = worst) consists of four indicators:<ul><li>The climate pledge based on the estimated temperature increase associated with the NDC</li><li>The current decarbonization trend based on the temperature increase associated with the evolution of past emissions</li><li>The carbon intensity based on territorial &amp; consumption-based emissions per unit of GDP</li><li>The fossil fuel dependency based on fossil fuel subsidies and fossil fuel weighted rents</li></ul>Thanks to the US’ updated NDC, it significantly improved its climate pledge score from the worst possible to the best possible score, which results in an improved overall rating from and an improved ranking compared to its OECD peers (improving its rank from 31 to 20 of 37 OECD countries)&nbsp;[1]. Considering the more ambitious emission target for Germany, also results in the best possible climate pledge score. However, the update has a less significant impact on the country’s overall rating and none on its ranking among its OECD peers (7 out of 37 before and after the update), as the country did already have a relatively ambitious NDC.<figure class="image"><img src="https://strapipreprod.s3.eu-west-3.amazonaws.com/index.png"></figure>There is still work to do:While the updated emission reduction targets do improve the countries’ overall ratings (and in the case of the US the ranking among other industrialized countries), there is still plenty of room for improvement regarding the other indicators, most notably the dependency on fossil fuels and current performance trend (especially in case of the US).This becomes clear when comparing the US and Germany to Sweden, a country with a similarly ambitious emission reduction target, and a country that significantly reduced its emissions since its first commitment to the Paris Agreement and is less dependent on fossil fuels. Sweden is currently ranked on top of all OECD countries.Whether the US and Germany will be able to fulfill their ambitious commitments to mitigate climate change is still in the open, so for now, it remains important to keep track of the countries’ emission evolution and other indicators, namely the current decarbonization trend, the carbon intensity relative to a country’s GDP, and the dependency on fossil fuels. A more detailed view publication on the climate change related performance of counties, based on the CIA methodology is intended to be published at the end of 2021.&nbsp;Note written by <a target="_blank" rel="noopener noreferrer">Théophile Anquetin</a> and <a target="_blank" rel="noopener noreferrer">Paul-Simon Glade</a>, carbon data analysts.Sources :[1] <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2021/04/22/fact-sheet-president-biden-sets-2030-greenhouse-gas-pollution-reduction-target-aimed-at-creating-good-paying-union-jobs-and-securing-u-s-leadership-on-clean-energy-technologies/">https://www.whitehouse.gov/briefing-room/statements-releases/2021/04/22/fact-sheet-president-biden-sets-2030-greenhouse-gas-pollution-reduction-target-aimed-at-creating-good-paying-union-jobs-and-securing-u-s-leadership-on-clean-energy-technologies/</a>[2] <a href="https://www.bundesregierung.de/breg-en/issues/climate-action">https://www.bundesregierung.de/breg-en/issues/climate-action</a>

USA and Germany have set new ambitious CO2 reduction targets.  What are the impacts on Carbon4 Finance’s ratings for these countries ?

USA & Germany set new ambitious CO2 reduction targets

A few days ago, Carbon4 Finance attended the Eagle Alpha ESG Day US Hackathon, which featured discussions on the 3 misconceptions of ESG – ratings, greenwashing, social washing – by critvocates (critics and advocates) of the corporate and investment industries.&nbsp;The event gathered about 150 companies worldwide and 15 data providers were challenged to demonstrate the value and accuracy of their calculations.&nbsp;<h4>The importance of Scope 3</h4>Carbon4 Finance was thrilled to present its Scope 3 analysis and prove its importance. We were able to take the exemple of Exxon and demonstrate that the Scope 3 carbone emissions count for 85% of the total emissions.It is absolutely imperative to integrate Scope 3 carbon emissions into a company’s climate performance, in order not to miss the challenges of climate change.<h4>The “avoided emissions” indicator</h4>We were also also asked to present the « avoided emissions » indicator, which is currently only provided by Carbon4 Finance. In comparison with a regular sector-specific scenario, this indicator gave a more precise calculation of Toyota’s avoided emissions and proved its added value.<h4>Convincing the jury</h4>Working within small teams, we were glad to be part of the Ottoquant team (in collaboration with Accern, Axiomatic Data, AZA-Soyul, Covalence, GlobalData, LinkUp and S·Factor) and win the ESG Data Hackathon !&nbsp;Find mot more about the Hackathon : <a href="https://eaglealpha.com/virtual-data-conference-may-2021/">https://eaglealpha.com/virtual-data-conference-may-2021/</a>Find out more about our solutions :<a href="https://www.carbon4finance.com/"> https://www.carbon4finance.com/</a>&nbsp;

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Carbon4 Finance wins the Eagle Alpha ESG Hackathon

<h4>Introduction</h4>Carbon4 Finance welcomes the opportunity to provide feedback on the Securities and Exchange Commission’s (SEC’s) request for public input on climate-related financial disclosures. As specialists in the low-carbon transition, we applaud SEC’s growing interest for climate change-related challenges, and we strongly support the development of sustainability disclosures to equip investors in their investment decisions.Greenhouse gases emissions linked to human activity will induce a climate change that experts agree will have major consequences on our economy and society. Knowledge of exposure to these risks but also to potential opportunities related to climate change is therefore an issue at stake for investors, for the future of financial performances and its preservation.It is undeniable that climate change poses a systemic risk to financial investments. Investors need to assess and monitor physical risks and transition risks, and the assessment and measure of these risks are based on company disclosures. Back in 2015, the landmark Paris Climate Agreement identified and encouraged ESG disclosures as a key tool to support the low-carbon transition.In this context, reliable disclosures of risks, financial impacts, and opportunities related to climate change is crucial as to inform investors for decision-making purposes. Climate change mandatory reporting provides an initial quantitative assessment of each company’s climate data and its related challenges, an understanding of their carbon performances related to benchmarks, and whether they are aligned with international objectives in the fight against climate change. A real-world example comes from France, where the implementation of climate change reporting for large companies provided investors with the tools to activate financing towards companies tackling climate change. It is therefore key for investors, regulators and data providers to access differentiating data as to understand a company’s awareness of its climate change impact. With future sustainable disclosures from the SEC, investors will own the appropriate tool to become actor in the climate transition.<h4>About Carbon4 Finance</h4>Created in 2016, Carbon4 Finance (C4F) provides institutional investors with comprehensive and reliable climate data to assess the climate risks and opportunities of their investment portfolios and build environmental investment strategies. Our clients are asset managers, asset owners, banks and index providers willing to report their climate performances or develop climate investment tools and policies based on custom climate data solutions.Carbon4 Finance offers a complete analysis of climate risks:• A bottom-up analysis that goes beyond sectoral analysis, enabling the identification of the climate-related best performing companies within each sector;• An exhaustive analysis of the carbon footprint, identifying both risks and opportunities, including the calculation of induced emissions and emissions savings (scope 1, 2 and scope 3 emissions upstream and downstream).Carbon4 Finance climate methodologies build on the 13 years of experience of our consulting entity Carbone 4, in performing life-cycle GHG assessments. These methodologies were designed by consulting engineers, specialized by economic sector. Carbone 4’s co-founder Jean-Marc Jancovici developed the Bilan Carbone® (known as&nbsp;Carbon Footprint) method for the ADEME, reference accounting methodology in France which went on to influence international standards. Carbone 4 strongly contributed to the working group for the ISO 14069 and associated guide which specifies rules for GHG emissions accounting. Carbone 4 was also involved in the Finance for Tomorrow working group to support the construction of the 50 ClimActs launched on the One Planet Summit in December 2017. Finally, Carbon4 Finance is represented among the TEG (Technical Expert Group) of the EU that is establishing EU-wide standards on green taxonomy.In our recent reports on the Oil &amp; Gas1 and Power2 sectors, Carbon4 Finance analyzed companies’ degree of exposure to transition risk, observed the historical trends of their absolute emissions (Scope 1, 2 and 3), and assessed the strategies activated to align with the global objective of decarbonizing the economy. These results where collected based on CIA (Carbon Impact Analytics)3 analysis campaigns conducted in 2020 and measured the exposure of companies to transition risk via an overall rating (from A+ to E-) and various sectoral indicators. We believe these results may guide the Commission in assessing the materiality of climate-related disclosures related to the Oil &amp; Gas and Power sectors. Those reports are enclosed to this Public Consultation feedback.Besides climate data, Carbon4 Finance together with CDC Biodiversité (French actor on biodiversity protection), will launch the Biodiversity Impact Analytics (BIA) Database powered by the GBS®. Combining experiences on climate data and biodiversity footprint methodology, this database will allow investors to assess the impact on biodiversity of their portfolio with a large coverage in terms of assets and markets.&nbsp;As providers of climate risk data for the financial sector, we welcome the opportunity to provide our input on the selected questions below.&nbsp;<h4>Public consultation response</h4>Question 1How can the Commission best regulate, monitor, review, and guide climate change disclosures in order to provide more consistent, comparable, and reliable information for investors while also providing greater clarity to registrants as to what is expected of them? Where and how should such disclosures be provided? Should any such disclosures be included in annual reports, other periodic filings, or otherwise be furnished?We strongly support the Commission’s willingness to enhance reporting guidelines as to provide more consistent, comparable and reliable information for investors.&nbsp;As we mentioned earlier, investors need to access actionable climate data, as climate change poses a systemic risk to financial investments.Question 2What information related to climate risks can be quantified and measured?&nbsp; How are markets currently using quantified information? Are there specific metrics on which all registrants should report (such as, for example, scopes 1, 2, and 3 greenhouse gas emissions, and greenhouse gas reduction goals)? What quantified and measured information or metrics should be disclosed because it may be material to an investment or voting decision? &nbsp;Should disclosures be tiered or scaled based on the size and/or type of registrant)? If so, how? Should disclosures be phased in over time? If so, how? How are markets evaluating and pricing externalities of contributions to climate change? Do climate change related impacts affect the cost of capital, and if so, how and in what ways? How have registrants or investors analyzed risks and costs associated with climate change? What are registrants doing internally to evaluate or project climate scenarios, and what information from or about such internal evaluations should be disclosed to investors to inform investment and voting decisions? How does the absence or presence of robust carbon markets impact firms’ analysis of the risks and costs associated with climate change?In accordance with Marc Carney’s discourse on the “Tragedy of the horizon”, three main climate risks categories are identified: transition risks, physical risks and liability risks. In terms of disclosure, we believe both transition and physical risks should be evaluated by the Commission.Climate transition risks are the risks involved with the adjustment process towards a low carbon economy (regulatory development, technological breakthrough, etc.). As to enable an energy transition, it is necessary to shift away from carbon-intensive investments and to mitigate climate change. Beyond the carbon footprint, it is essential to consider the capacity of a company to contribute to the energy and climate transition.We identify several metrics which registrants should report on as to enable investors embedding transition risks in their investment strategy.First, reporting should contain induced emissions, comprising the Scope 1, Scope 2 and Scope 3 emissions most material to their activities, by business segment. All scopes’ consistency should be transparent, and calculation methodology should be subject to comprehensive explanations. Historical data should be reported as to comprehend the registrant’s ability to reduce its emissions over time. As activity data is key as to back up the emissions reported by companies, physical data on energy consumption would provide higher granularity and consistency of data.Focusing on emissions savings, it is a climate metric which we believe the Commission should carefully assess, as it helps investors to steer investments towards solutions for a decarbonized economy. Today, the climate impact of companies is assessed through a static indicator: the carbon intensity, which measures, at a given moment, a company’s carbon emissions.&nbsp;To achieve the 2° C target of the Paris Climate Agreement, it is also necessary to look at the reality of a company’s strategic and financial commitment to a low carbon transition.&nbsp;A metric providing the means to quantity this commitment is the “carbon emission savings” indicator, which was developed by Carbon4 Finance, and successfully applied by investors, i.e., our clients, in their sustainable investment strategy.Emissions savings&nbsp;are calculated by adding up the “avoided emissions” (comparing the company to the trajectory of its sector) and the “reduced emissions” of a company (comparing the company with itself over 5 years):•avoided emissions&nbsp;are the emissions that are avoided by the company’s products and services; they are calculated by comparing the emissions with a sectorial baseline scenario (i.e. an IEA scenario 2°), or with the substitution by low-carbon solutions.&nbsp;A company avoids emissions if there is a positive gain between the induced emissions of the company on the one hand, and the baseline sectoral emissions scenario on the other hand.•reduced emissions&nbsp;are the volume of emissions lowered through a process efficiency over time: an emission reduction is a&nbsp;real decrease&nbsp;of the company’s carbon intensity over 5 years.The “emission savings” indicator is key to understand the real impact of a company. This indicator is a powerful tool as to identify companies that have already entered the climate transition and to measure the companies’ action for the low carbon transition, providing figures that are more meaningful and tangible than all the companies statements that claim carbon neutrality.While induced and emissions savings can be used to report on a company’s current performance, it is important to have a forward-looking view of the company. Extra-financial disclosures should contain the detailed climate change mitigation strategy of the registrants, with targeted emissions reduction as well as the intermediary actions to achieve the target(s). In accordance with the Paris Climate Agreement, a strategy towards a 2° aligned economy should be set out. Governance and oversight of climate change-related challenges should also be disclosed as to ensure management is involved in the monitoring of the climate change forward-looking strategy. We will further tackle this point in the Question 8.Lastly, as to demonstrate companies’ willingness to shift their business towards climate change mitigation, they should disclose their investment and R&amp;D in low-carbon projects. It is indeed by reporting low-carbon investments that companies show investors they are equipped with the necessary resources as to mitigate the climate transition risks. Investors need to ensure that issuers align consistent resources as to tackle climate risks.&nbsp;The other category of risk which should be addressed in companies’ disclosures, are the physical risks. It represents the exposure and vulnerability of registrants to physical consequences of climate change (see our CRIS Methodology4).To enable investors to understand and manage company risks and to engage in dialogue with registrants, companies should identify in their reporting acute and chronic climate hazards as well as adaptation strategies to withstand these risks.Registrants should disclose the geographical area of their activities, and the location of assets in sectors most affected to physical risks. This would provide investors with accurate data as to identify the companies most subject to natural disasters.Question 4What are the advantages and disadvantages of establishing different climate change reporting standards for different industries, such as the financial sector, oil and gas, transportation, etc.? How should any such industry-focused standards be developed and implemented?The challenges arising from climate change vary by economic sector, both in terms of levers for reducing emissions and in terms of innovations. Roughly 80% of worldwide GHG emissions are generated by some sectors, on which climate disclosure efforts should be prioritized.<figure class="image"><img src="https://strapipreprod.s3.eu-west-3.amazonaws.com/SEC_1.png"></figure>We recommend the SEC to concentrate its efforts on assets that have a material impact on the carbon performance of investee companies.Carbon4 Finance develops sector-specific indicators and calculation modules to factor in the specificities of each sector. This in-depth assessment of the portfolio constituents covers all operating segments and is based on several operational and company-specific data: production volumes (tons of steel, MWh per source, etc.), production or sales locations, energy efficiency of the process, sources of supply, etc. This operational data is collected from various reports made publicly available by the company (annual, CSR and ESG reports). The disclosure of these consistent, comparable, and reliable data would inform investors on the most material risks to consider for each sector.The graph below, retrieved from our database, illustrates the breakdown of induced Scope 1&amp;2 and Scope 3 emissions by sector, for the S&amp;P 500 index. It shows that the Commission should first tackle the industries which have a stronger impact on climate change via their Scope 1&amp;2, and Scope 3 emissions.<figure class="image"><img src="https://strapipreprod.s3.eu-west-3.amazonaws.com/Breakdown_of_induced_Scope_1_and_2_and_Scope_3_emissions_by_sector.png"></figure>Question 8How, if at all, should registrants disclose their internal governance and oversight of climate-related issues? For example, what are the advantages and disadvantages of requiring disclosure concerning the connection between executive or employee compensation and climate change risks and impacts?As governance on climate change is crucial as to monitor the achievement of related targets, registrants should clearly and transparently define the bodies in charge of tackling climate change starting from the highest-level positions in the management (including the Executive Committee). Companies should define the Board-level oversight and responsibility over carbon performances. Governance on climate change is key for investors as to verify the consistency of reported quantitative data on transition and physical risks. An appropriate governance strengthens a registrant’s capability to address this challenge.Additionally, registrants should disclose if any (financial) incentives linked to the achievement of climate change-related metrics are provided by the management. With that disclosed information, investors would understand if the achievement of the climate change mitigation strategy is more likely to succeed.As to raise awareness of individuals within issuers’ entity, disclosure on whether the company encourage employees to pay attention to climate change or provide trainings on that matter should be provided.Question 14What climate-related information is available with respect to private companies, and how should the Commission’s rules address private companies’ climate disclosures, such as through exempt offerings, or its oversight of certain investment advisers and funds?The Commission should address private companies’ disclosures by integrating induced emissions (Scopes 1&amp;2 and Scope 3) as a mandatory metric. Without activity and emissions data, it prevents investors from making an initial quantitative screening on carbon performances, major orders of magnitudes and the associated climate risks as to understand their origin (sector, activities, value chain, location, etc.).Both private and public companies should be actors in the fight against climate change, which should be demonstrated by appropriate climate change disclosures.Footnotes<ol><li><a href="https://strapipreprod.s3.eu-west-3.amazonaws.com/297_publication_the_oil_industry.pdf">https://strapipreprod.s3.eu-west-3.amazonaws.com/297_publication_the_oil_industry.pdf</a></li><li><a href="https://strapipreprod.s3.eu-west-3.amazonaws.com/Carbon_Impact_Analytics_November18.pdf">https://strapipreprod.s3.eu-west-3.amazonaws.com/Carbon_Impact_Analytics_November18.pdf</a></li><li><a href="http://crisforfinance.com/en/cris-finance-climate-risk-impact-screening/">http://crisforfinance.com/en/cris-finance-climate-risk-impact-screening/</a></li></ol>

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Carbon4 Finance response to the SEC’s Public Consultation on Climate Change Disclosures

Depuis six ans, les équipes de&nbsp;<a href="http://lita.co/">LITA.co</a>&nbsp;militent pour une finance durable et citoyenne à travers l’investissement. Aujourd’hui, elles vont plus loin en lançant Rift, l’application qui permet à chacun de découvrir l’impact de son épargne et dont Carbon4 Finance est fier d’être partenaire !Projet ambitieux, Rift est pourtant né d’un point de départ simple : la finance est une boîte noire. Pourtant notre argent, et plus particulièrement notre épargne, ne dort jamais. L’heure est désormais à la transparence !&nbsp;L’idée de l’application : permettre au plus grand nombre de comprendre ce qui est financé avec leur épargne et voir quels en sont les impacts environnementaux et sociétaux. Mais c’est aussi un outil pour s’informer sur la finance pour pouvoir agir pour une transformation d’un secteur dont l’opacité actuelle ne permettra aucune transition.&nbsp;Carbon4 Finance a participé à cette initiative en mettant à disposition ses données pour calculer l’empreinte carbone de l’épargne.&nbsp;À retrouver sur App Store et Google Play.<a href="https://riftapp.fr/">Plus d’infos&nbsp;</a><figure class="image"><img src="https://strapipreprod.s3.eu-west-3.amazonaws.com/RIFT.jpg"></figure>

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Carbon4 Finance est partenaire de l’appli Rift par LITA.co

En 2020, Carbon4 Finance a continué de se développer et de proposer ses données pour les mettre au service d’un monde financier aligné avec les accords de Paris.L’année a été marquée par :<figure class="image"><img src="https://strapipreprod.s3.eu-west-3.amazonaws.com/Page_couverture_version_publique_600x848.png"></figure>Une publication choc – “L’industrie pétrolière : à la hauteur des enjeux climatiques ?”<figure class="image"><img src="http://www.carbon4finance.com/wp-content/uploads/2021/01/Page-couverture-version-publique-212x300.png" alt="" srcset="http://www.carbon4finance.com/wp-content/uploads/2021/01/Page-couverture-version-publique-212x300.png 212w, http://www.carbon4finance.com/wp-content/uploads/2021/01/Page-couverture-version-publique-768x1085.png 768w, http://www.carbon4finance.com/wp-content/uploads/2021/01/Page-couverture-version-publique-725x1024.png 725w, http://www.carbon4finance.com/wp-content/uploads/2021/01/Page-couverture-version-publique-600x848.png 600w, http://www.carbon4finance.com/wp-content/uploads/2021/01/Page-couverture-version-publique.png 1241w" sizes="100vw" width="212"></figure>Dans le cadre de sa campagne d’analyse du secteur pétrolier selon la méthodologie Carbon Impact Analytics (CIA), Carbon4 Finance a pu établir le classement des entreprises de l’industrie pétrolière selon leur degré d’exposition au risque de transition, mais aussi observer les tendances historiques de leurs émissions absolues (Scope 1, 2 et 3), et évaluer les stratégies mises en place pour s’aligner avec les objectifs de décarbonation de l’économie mondiale.Cette note synthétise les résultats de la campagne d’analyse CIA menée des mois de juin à septembre 2020 sur un échantillon d’une centaine d’entreprises de l’industrie pétrolière et gazière. La méthode CIA vise à mesurer l’exposition des entreprises au risque de transition via une note globale (de A+ à E-) et différents indicateurs sectoriels.Cette publication est la première d’une série d’analyses des acteurs de différents secteurs !&nbsp;<a href="https://www.carbon4finance.com/publication-the-oil-industry">Lire la publication</a>&nbsp;&nbsp;De nouveaux partenariats<figure class="image"><img src="https://strapipreprod.s3.eu-west-3.amazonaws.com/C4_F_partenariats_2020.png"></figure>Des collaborations et partage de données pour la rédaction de publications<figure class="image"><img src="http://www.carbon4finance.com/wp-content/uploads/2021/01/Largent-sale-du-capital-212x300.png" alt="" srcset="http://www.carbon4finance.com/wp-content/uploads/2021/01/Largent-sale-du-capital-212x300.png 212w, http://www.carbon4finance.com/wp-content/uploads/2021/01/Largent-sale-du-capital-768x1085.png 768w, http://www.carbon4finance.com/wp-content/uploads/2021/01/Largent-sale-du-capital-725x1024.png 725w, http://www.carbon4finance.com/wp-content/uploads/2021/01/Largent-sale-du-capital-600x848.png 600w, http://www.carbon4finance.com/wp-content/uploads/2021/01/Largent-sale-du-capital.png 1510w" sizes="100vw" width="212"></figure><figure class="image"><img src="https://strapipreprod.s3.eu-west-3.amazonaws.com/Largent_sale_du_capital_600x848.png"></figure>En décembre 2015, après d’intenses négociations sur la reconnaissance des responsabilités de chacun et le partage des efforts à consentir, les États adoptaient l’accord de Paris. À la clé, une feuille de route et un engagement commun à tout faire pour limiter le réchauffement à 1,5 °C. Cinq ans plus tard, la France accumule les retards à l’allumage et ne parvient pas à respecter les objectifs, pourtant limités, de sa « Stratégie nationale bas carbone ». Un échec que l’exécutif aime expliquer par le défaut d’acceptabilité sociale de la transition écologique, et qui s’est notamment traduit par le gel de la taxe carbone consécutif au mouvement des gilets jaunes.Après avoir proposé d’assujettir les grandes entreprises à l’accord de Paris en régulant leurs dividendes dans le cadre du plan de relance, Greenpeace interroge la responsabilité des ménages à travers l’empreinte carbone de leur patrimoine financier et leur contribution à l’effort, au moment où débute l’examen du projet de loi de finances pour 2021. Les lois de finances successives sont en effet le principal levier pour construire les bases du consentement social à un nouveau projet de société.<a href="https://cdn.greenpeace.fr/site/uploads/2020/10/l-argent-sale-du-capital-pour-l-instauration-d-un-ISF-cimatique-1.pdf?_ga=2.78772052.1793995634.1610310246-198344281.1609939572&amp;_gac=1.19946826.1609939573.Cj0KCQiA3NX_BRDQARIsALA3fILJWr7LgaIar8qHKUynIsStIs2m5jZa5f0M2f6g7Jriu5jckHPNqMYaAtFAEALw_wcB">Lire la publication</a>&nbsp;<figure class="image"><img src="https://strapipreprod.s3.eu-west-3.amazonaws.com/Banques_4_degres_600x851.png"></figure>Le&nbsp;rapport intitulé « Banques : des engagements climat à prendre au 4ème degré » lève le voile sur l’empreinte carbone colossale des banques françaises en analysant les émissions de gaz à effet de serre issues des activités de financement et d’investissement des six principales banques françaises, et en leur attribuant une « température ».Le rapport révèle ainsi que l’empreinte carbone de ces 6 banques françaises (BNP Paribas, Crédit Agricole, Société Générale, Banque Populaire Caisse d’Epargne, Crédit Mutuel et la Banque Postale) -représente près de 8 fois les émissions de gaz à effet de serre de la France entière -nous amène vers une trajectoire à + de 4°C.<a href="https://www.oxfamfrance.org/wp-content/uploads/2020/10/rapportBanque_OXFAM_v5.pdf">Lire la publication</a>&nbsp;&nbsp;&nbsp;&nbsp;Des collaborations et partage de données pour des projets innovants<figure class="image"><img src="https://strapipreprod.s3.eu-west-3.amazonaws.com/Rift_600x333.png"></figure>Carbon4 Finance est fier d’avoir participé au projet Rift, l’application qui permet à chacun de découvrir l’impact de son épargne. Projet ambitieux, Rift est pourtant né d’un point de départ simple : la finance est une boîte noire. Pourtant notre argent, et plus particulièrement notre épargne, ne dort jamais. L’heure est désormais à la transparence !L’idée de l’application : permettre au plus grand nombre de comprendre ce qui est financé avec leur épargne et voir quels en sont les impacts environnementaux et sociétaux. Mais c’est aussi un outil pour s’informer sur la finance pour pouvoir agir pour une transformation d’un secteur dont l’opacité actuelle ne permettra aucune transition.<a href="https://riftapp.fr/">Découvrez l’application</a>&nbsp;&nbsp;Des webinaires pour sensibiliser et rendre les enjeux accessibles à tous<figure class="image"><img src="http://www.carbon4finance.com/wp-content/uploads/2021/01/Capture-d’écran-2021-01-10-à-21.39.41-300x150.png" alt="" srcset="http://www.carbon4finance.com/wp-content/uploads/2021/01/Capture-d’écran-2021-01-10-à-21.39.41-300x150.png 300w, http://www.carbon4finance.com/wp-content/uploads/2021/01/Capture-d’écran-2021-01-10-à-21.39.41-768x383.png 768w, http://www.carbon4finance.com/wp-content/uploads/2021/01/Capture-d’écran-2021-01-10-à-21.39.41-600x299.png 600w, http://www.carbon4finance.com/wp-content/uploads/2021/01/Capture-d’écran-2021-01-10-à-21.39.41.png 822w" sizes="100vw" width="300"></figure><figure class="image"><img src="https://strapipreprod.s3.eu-west-3.amazonaws.com/Capture_d_ecran_2021_01_10_a_21_39_41_600x299.png"></figure>The Covid-19 crisis and its multiple and cascading worldwide impacts warns us that we are definitely not prepared for the unexpected. Regarding climate change, we are aware that the world will face brutal consequences in the near future. We need to address climate action urgently, by reducing massively CO2 emissions and by anticipating both physical climate risks and transition risks.<a href="https://www.carbon4finance.com/webinar-how-to-anticipate-climate-related-risks-with-data">Revoir le webinaire</a>&nbsp;&nbsp;<figure class="image"><img src="https://strapipreprod.s3.eu-west-3.amazonaws.com/Capture_d_ecran_2021_01_10_a_21_40_43_1.png"></figure>Marie-Anne Vincent&nbsp;(Head of Business Development),&nbsp;Jean-Yves Willmotte&nbsp;(Manager) and&nbsp;Florian Gallo&nbsp;(Consultant Senior) took part in the&nbsp;IIF ESG Webinar Series, to talk about climate data and the methodologies that are commonly used to assess institutions’ carbon footprint, and to take action.<a href="https://www.carbon4finance.com/webinar-in-climate-data-we-trust">Revoir le webinaire</a>&nbsp;<figure class="image"><img src="https://strapipreprod.s3.eu-west-3.amazonaws.com/webinair_C4_F_HSBC.png"></figure>&nbsp;HSBC Global Asset Management et Carbon4 Finance ont présenté le&nbsp;nouvel indicateur climatique développé par Carbon4 Finance&nbsp;lors d’un webinar le 3 novembre 2020&nbsp;: les “émissions économisées”.Les&nbsp;émissions économisées&nbsp;correspondent à la sommes des émissions évitées et des émissions réduites et quantifient ce que les clients d’un produit ou service vont émettre en moins par rapport à un scénario de référence. Le plus souvent cela correspondra à la différence entre émissions après et avant achat.<a href="https://www.carbon4finance.com/webinar-un-nouvel-indicateur">Revoir le webinaire</a><figure class="image"><img src="https://strapipreprod.s3.eu-west-3.amazonaws.com/patrimonia_548x1024.png"></figure>&nbsp;A l’occasion du salon Patrimonia, Marie-Anne Vincent,&nbsp;(Head of Business Development) a parlé de l’importance, pour faire face au changement climatique, de proposer aux investisseurs financiers de nouveaux indicateurs qui leurs permettent de faire les bons investissements pour aligner leurs portefeuilles avec les accords de Paris.<a href="https://patrimonia.fr/session/eee1dd16-e8ab-ea11-96d3-28187816a369">Revoir le webinaire</a>

Carbon4 Finance en 2020

<ul><li>Carbon4 Finance chosen to provide the Eurosystem (i.e. the National Central Banks of the euro area and the European Central Bank (ECB)) with climate-related sustainable and responsible investment (SRI) data</li><li>Deutsche Bundesbank acted as Lead Central Bank on behalf of all ESCB (European System of Central Banks) central banks in the procurement procedure and entered into a contract to use the data provided by Carbon4 Finance</li><li>Carbon4 Finance assignment follows common stance agreed last year by the Eurosystem on climate change-related investment principles and disclosure on climate-related risks</li></ul>Carbon4 Finance, a leading provider of climate- and biodiversity-related data for the financial community, announced today that it was chosen through a competitive selection process by Deutsche Bundesbank acting on behalf of all ESCB (European System of Central Banks) central banks for the supply, usage and disclosure of sustainable and responsible investment (SRI) data. Within this framework agreement, all central banks of the ESCB like the European Central Bank (ECB) and each of the 19 National Central Banks of the euro area forming the Eurosystem, are now given the opportunity to use Carbon4 Finance comprehensive data.A key step in bringing to life the common stance adopted by the Eurosystem on climate-changeThe assignment of Carbon4 Finance follows the announcement in 2021 of a common approach by the Eurosystem Central Banks to apply sustainable and responsible investment principles in the euro-denominated non-monetary policy portfolios<a href="#_ftn1">[1]</a> that they each manage under their own responsibility. Within this common stance, the Eurosystem aims to start climate-related disclosures beginning of 2023 including the measurement and disclosure of greenhouse gas (GHG) emissions and other SRI metrics of these portfolios&nbsp;consistent with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), and potentially other portfolios in the future. By improving the awareness and understanding of climate-related risks, the common endeavor will help all Eurosystem members to contribute to the transition to a low-carbon economy and to EU climate goals.Carbon4 Finance data enables to assess exposure of central banks assetsCarbone4 Finance provides data covering both physical risks caused by global warming and transition risks supported by assets as the world shifts to a low-carbon economy. It comprises data and/or methodologies on Scope 1, Scope 2 and Scope 3 GHG emissions, GHG intensity data, avoided emissions and forward-looking elements. These data allow to follow main economic sectors and issuer-types with data relating to securities/asset classes such as sovereign and sub-sovereign bonds, supranational and agency bonds, corporate bonds, covered bonds, green bonds and equity. Carbon4 Finance has a worldwide coverage with more than 124,000 ISINs and 8,000 entities.A framework contract signed with Deutsche BundesbankDeutsche Bundesbank, which acted as Lead Central Bank during the procurement process entered into a contract with Carbon4 Finance and will be one of the first central banks that will obtain the data from Carbon4 Finance. All other ESCB central banks have the opportunity to join this framework agreement for using climate-related data from Carbon4 Finance for regulatory tasks and activities being necessary for the performance of its missions and responsibilities.“The availability of comprehensive, consistent and timely data is the key to everything we do,” says Sabine Mauderer,&nbsp;the member of the Bundesbank’s Executive Board responsible for markets. “The better the data situation, the more targeted our actions can be.”“From the very beginning, Carbon4 Finance's strategy has been to produce data that allow corporates, asset managers, banks&nbsp; to understand how the underlying assets in their portfolios are exposed to the risks of climate change, but also how they can contribute to the transition to a low carbon world.&nbsp; We follow rigorous scientific criteria and approaches, stemming from the Carbone 4 group's extensive experience in strategic consultancy and proven expertise in delivering leading-edge methodologies. At a time when the IPCC warns of irreversible impacts of global warming and increasing business and societal disruption, with an urgent call to action to the business community, we are delighted to see that the Eurosystem embraces this point of view.”&nbsp;said the&nbsp; partners of Carbone 4.“Climate change is a challenge not just to the global economy and the societies but also to the financial system. To support the finance sector in rapidly and massively addressing climate issues, our mission is to provide financial institutions with relevant data to help them better integrate related risks in their portfolio strategy as well as in their reporting. We are happy to have been selected by the Deutsche Bundesbank as Lead Central Bank in this procurement procedure on behalf of the whole ESCB/Eurosystem. Our strong methodologies and data quality on transition and physical risks as well as our team expertise on the different sectors and on the different assets and green bonds were instrumental for this recognition.”&nbsp;&nbsp;added the partners..The three partners of Carbone 4 are Alain Grandjean, Jean-Marc Jancovici and Laurent Morel.&nbsp;&nbsp;<a href="#_ftnref1">[1]</a>&nbsp;Euro-denominated non-monetary policy portfolios contain the assets held by Eurosystem central banks that are not related to monetary policy operations. They include euro-denominated investment portfolios and staff pension funds. &nbsp;About Carbon4 Finance&nbsp;Carbon4 Finance is part of Carbone 4, a Paris-based group comprising the first independent consultancy firm specialized in low-carbon strategy and adaptation to climate change.Created in 2016, Carbon4 Finance provides institutional investors with comprehensive and reliable climate, carbon, and biodiversity data, in order to assess the risks and opportunities of their investment portfolios and build environmental investment strategies. Its clients are asset managers, asset owners, banks and index providers willing to report their climate and environmental performances or develop investment tools and policies based on custom data solutions.Carbon4 Finance offers a complete analysis of climate and environmental risks:• Carbon Impact Analytics&nbsp;(CIA) offers a bottom-up analysis that goes beyond sectoral analysis, enabling the identification of the climate-related best performing companies within each sector; it provides an exhaustive analysis of the carbon footprint, identifying both risks and opportunities, including the calculation of induced emissions and emissions savings (scope 1, 2 and scope 3 emissions upstream and downstream).• Climate Risk Impact Screening (CRIS) is a method developed for financial service providers to assess the exposure of their asset portfolio to physical risks (heat waves, droughts, sea level rise, storms …) CRIS provides indicators that allow us to obtain several levels of detail on physical risks: from an overall assessment for reporting purposes to a detailed assessment to engage with underlying companies.• Launched in 2021, Biodiversity Impact Analytics Database powered by the GBS® (BIA-GBS)&nbsp;is an integrated impact database that provides an overall and integrated vision of the biodiversity footprint at the issuer and portfolio level, considering the full value chains of the underlying companies.&nbsp;For more information, visit<a href="http://www.carbon4finance.com/">&nbsp;www.carbon4finance.com</a>&nbsp;Media contact:Alexia Soyeux - Communication and marketing manager+ 33 1 1 76 21 10 00<a href="mailto:alexia.soyeux@carbone4.com">alexia.soyeux@carbone4.com</a>Isabelle Laurent - OPRG Financial+ 33 6 42 37 54 17<a href="mailto:isabelle.laurent@oprgfinancial.fr">isabelle.laurent@oprgfinancial.fr</a>Victor Morelle - OmnicomPRGroup+ 33 6 18 83 59 55victor.morelle@omnicomprgroup.com

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Carbon4 Finance selected by the Eurosystem to supply climate-change related investment data

[Event - Building Bridges - Geneva] Join us on October 5 at 4PM for the panel discussion during the event <a href="https://www.linkedin.com/feed/hashtag/?keywords=buildingbridges22&amp;highlightedUpdateUrns=urn%3Ali%3Aactivity%3A6980094379247996928">#BuildingBridges22</a>, that aims to contribute to a more <a href="https://www.linkedin.com/feed/hashtag/?keywords=sustainable&amp;highlightedUpdateUrns=urn%3Ali%3Aactivity%3A6980094379247996928">#sustainable</a> <a href="https://www.linkedin.com/feed/hashtag/?keywords=future&amp;highlightedUpdateUrns=urn%3Ali%3Aactivity%3A6980094379247996928">#future</a> and to the fair and just transition of our economies. Our event will explore the crucial role the finance industry may play in making capital available for the energy transition with <a href="https://www.linkedin.com/in/ACoAAAEwBp8B2cDq2W1FeYnpSozWlRbGr6khsvQ">Virginie Wauquiez</a> and <a href="https://www.linkedin.com/in/ACoAAAr0_B0BqxIjcLZ9WchvB7ybsHb_AVJEKIM">Melissa Evelyne PEREZ</a> from Carbon4 Finance, <a href="https://www.linkedin.com/in/ACoAAAeohHYBHrwoGanesK3vmS7UXtV7R4BLZeE">Peter Michaelis</a> from <a href="https://www.linkedin.com/company/liontrust-asset-management/">Liontrust Asset Management PLC</a>, <a href="https://www.linkedin.com/in/ACoAACoaM1UBFZh4B0rtxQKC8ZHoTFVmJuuSgJk">Catharina Hillenbrand</a> from <a href="https://www.linkedin.com/company/carbon-tracker/">Carbon Tracker</a>, and <a href="https://www.linkedin.com/in/ACoAACe57ckB6s5XPMmTCVJiE60zsrEJRq0m7pQ">Damien Contamin, CIIA, CFA ESG</a> from <a href="https://www.linkedin.com/company/bcge/">BCGE - Banque Cantonale de Genève</a> <a href="https://www.buildingbridges.org/event/energy-transition-from-global-to-local%ef%bf%bc/">Register now&nbsp;</a>

Building Bridges - Energy Transition: From Global to Local

Siècle Digital - GoodVest, la Fintech française qui permet aux particuliers d’investir de manière responsable

Surf Finance - La Fintech française Goodvest rend l’investissement éco-responsable possible

Paperjam - Les asset managers face aux risques climatiques

Carbone 4 note les entreprises pour verdir les actifs des banques

SPHERE - Décarboner ses portefeuilles : mode d’emploi

Investir - Les Echos - Au coeur de la méthodologie de Carbon4 Finance

GHG protocol compliant, and using value chain approach, designed to avoid double counting.


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Portfolio Temperature Alignment

GHG protocol compliant, and using value chain approach, designed to avoid double counting.



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Scope 1, 2 & 3 induced emissions 

Our metrics comply with industry highest standards. We provide granular data for you to leverage on, enabling precise climate reporting and supporting your alignment with the low-carbon transition.


Article 29: new requirements and new ambitions for 2023

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