WEBVTT 1 00:00:03.560 --> 00:00:04.560 Climate action is a 2 00:00:04.560 --> 00:00:05.920 boardroom agenda item 3 00:00:05.920 --> 00:00:10.040 for today's corporate leaders, and financial institutions are positioned 4 00:00:10.040 --> 00:00:13.000 to be catalysts for achieving net zero globally. 5 00:00:14.600 --> 00:00:16.040 With their ability to direct 6 00:00:16.040 --> 00:00:16.880 capital flows 7 00:00:16.880 --> 00:00:21.000 into sustainable economic activities, and away from unsustainable ones, 8 00:00:21.320 --> 00:00:24.800 they have tremendous leverage for reducing carbon emissions from industry. 9 00:00:25.040 --> 00:00:29.640 To be able to push effectively for climate action, financial institutions 10 00:00:29.680 --> 00:00:33.040 first need transparency on their portfolio’s carbon footprint. 11 00:00:33.280 --> 00:00:36.960 Yet fewer than 3% of large corporations 12 00:00:36.960 --> 00:00:39.840 today publish their emissions data. Why? 13 00:00:40.280 --> 00:00:42.480 They simply don't have the data. 14 00:00:42.480 --> 00:00:45.480 To solve this problem for financial institutions, 15 00:00:45.560 --> 00:00:48.920 we have developed CO2 FI by BCG. 16 00:00:49.240 --> 00:00:53.720 This tool provides the financial sector—including banks, asset managers, 17 00:00:53.920 --> 00:00:57.880 insurance companies, and principal investors and private equity— 18 00:00:58.640 --> 00:01:01.640 the transparency they need to make investment 19 00:01:01.640 --> 00:01:04.680 decisions that promote carbon reduction. 20 00:01:05.360 --> 00:01:09.280 CO2 FI by BCG follows a cascading logic, 21 00:01:09.360 --> 00:01:13.880 using the best information available from more than 50 data sources, to provide 22 00:01:13.880 --> 00:01:17.840 carbon accounting, data on net-zero alignment and business impact 23 00:01:17.840 --> 00:01:20.040 simulation for financial institutions. 24 00:01:20.720 --> 00:01:24.440 It brings combined analytics and strategy capabilities together 25 00:01:24.600 --> 00:01:28.320 with a huge network of BCG industry and climate experts, 26 00:01:28.560 --> 00:01:30.200 to help you estimate the carbon 27 00:01:30.200 --> 00:01:34.320 footprint of each individual company or physical asset in your portfolio. 28 00:01:34.960 --> 00:01:38.960 Getting a full view of your climate action journey, monitoring progress, 29 00:01:39.000 --> 00:01:43.800 and operationalizing carbon reduction targets effectively are all imperative. 30 00:01:44.920 --> 00:01:45.640 Our teams 31 00:01:45.640 --> 00:01:48.520 can help you create your CO₂ reduction roadmap 32 00:01:48.720 --> 00:01:52.760 by identifying key sectors and business units for decarbonization 33 00:01:53.040 --> 00:01:56.960 through our tool’s customizable scenario analysis capabilities. 34 00:01:58.600 --> 00:02:00.360 CO2 FI's AI 35 00:02:00.360 --> 00:02:03.240 core has a dedicated approach for each asset type, 36 00:02:03.480 --> 00:02:06.120 using more than 100 analytics models. 37 00:02:07.360 --> 00:02:10.400 It facilitates multiple use cases for incorporating 38 00:02:10.400 --> 00:02:14.120 emissions measurements into core banking processes, thus 39 00:02:14.160 --> 00:02:18.840 steering investments to sustainable or potentially sustainable businesses. 40 00:02:19.200 --> 00:02:23.000 For energy production companies, for example, it uses global data 41 00:02:23.000 --> 00:02:26.360 on the individual plant level to understand the technology mix, 42 00:02:26.760 --> 00:02:30.520 then employs granular utilization rates and emission factors 43 00:02:30.720 --> 00:02:33.400 to obtain a highly accurate emissions footprint. 44 00:02:33.720 --> 00:02:37.760 And CO2 FI's monitoring and tracking capabilities enable you 45 00:02:37.760 --> 00:02:41.680 to assess portfolio company progress and adapt as necessary. 46 00:02:42.680 --> 00:02:47.720 CO2 FI also calculates physical emissions intensities and compares them 47 00:02:47.720 --> 00:02:52.200 with established decarbonization pathways to determine the net-zero gap. 48 00:02:53.320 --> 00:02:56.240 With CO2 FI, investors can get carbon 49 00:02:56.240 --> 00:03:00.080 footprint breakdowns of industries, countries, and legal entities. 50 00:03:00.360 --> 00:03:04.320 Its sector viewer enables a deep dive for emission-intensive industries 51 00:03:04.320 --> 00:03:06.960 to determine the best path to decarbonization. 52 00:03:07.800 --> 00:03:10.760 Our tool also enables you to drill down at the level 53 00:03:10.760 --> 00:03:14.760 of individual counterparties as well. 54 00:03:14.760 --> 00:03:19.720 CO2 FI's tested, proven approach has enabled financial institutions 55 00:03:19.920 --> 00:03:24.800 to jumpstart their progress towards net zero, providing emission estimates 56 00:03:25.080 --> 00:03:28.680 for the 80%-90% of the counterparties in their portfolios 57 00:03:28.920 --> 00:03:31.320 that still have no reported data. 58 00:03:33.000 --> 00:03:35.600 Be a catalyst for financing net zero 59 00:03:35.640 --> 00:03:38.000 with CO2 FI.