Climate action is a
boardroom agenda item
for today's corporate leaders, and financial institutions are positioned
to be catalysts for achieving net zero globally.
With their ability to direct
capital flows
into sustainable economic activities, and away from unsustainable ones,
they have tremendous leverage for reducing carbon emissions from industry.
To be able to push effectively for climate action, financial institutions
first need transparency on their portfolio’s carbon footprint.
Yet fewer than 3% of large corporations
today publish their emissions data. Why?
They simply don't have the data.
To solve this problem for financial institutions,
we have developed CO2 FI by BCG.
This tool provides the financial sector—including banks, asset managers,
insurance companies, and principal investors and private equity—
the transparency they need to make investment
decisions that promote carbon reduction.
CO2 FI by BCG follows a cascading logic,
using the best information available from more than 50 data sources, to provide
carbon accounting, data on net-zero alignment and business impact
simulation for financial institutions.
It brings combined analytics and strategy capabilities together
with a huge network of BCG industry and climate experts,
to help you estimate the carbon
footprint of each individual company or physical asset in your portfolio.
Getting a full view of your climate action journey, monitoring progress,
and operationalizing carbon reduction targets effectively are all imperative.
Our teams
can help you create your CO₂ reduction roadmap
by identifying key sectors and business units for decarbonization
through our tool’s customizable scenario analysis capabilities.
CO2 FI's AI
core has a dedicated approach for each asset type,
using more than 100 analytics models.
It facilitates multiple use cases for incorporating
emissions measurements into core banking processes, thus
steering investments to sustainable or potentially sustainable businesses.
For energy production companies, for example, it uses global data
on the individual plant level to understand the technology mix,
then employs granular utilization rates and emission factors
to obtain a highly accurate emissions footprint.
And CO2 FI's monitoring and tracking capabilities enable you
to assess portfolio company progress and adapt as necessary.
CO2 FI also calculates physical emissions intensities and compares them
with established decarbonization pathways to determine the net-zero gap.
With CO2 FI, investors can get carbon
footprint breakdowns of industries, countries, and legal entities.
Its sector viewer enables a deep dive for emission-intensive industries
to determine the best path to decarbonization.
Our tool also enables you to drill down at the level
of individual counterparties as well.
CO2 FI's tested, proven approach has enabled financial institutions
to jumpstart their progress towards net zero, providing emission estimates
for the 80%-90% of the counterparties in their portfolios
that still have no reported data.
Be a catalyst for financing net zero
with CO2 FI.