ClimatePoint offers the next generation of climate compensation. We proactively push the market to restructure value chains. The basis for that is the ingenuity of the companies that our clients can invest in. But how do we select our investee companies and how do we assess the emission reductions enabled by their solutions? It all boils down to a three-step process for selecting investment targets and assessing the environmental benefits of their solutions:
Based on continuous market monitoring, we identify suitable investments by matching their activities with the UN Sustainable Development Goals (SDGs). Only companies whose activities contribute substantively to at least the targets of SDG #13 Climate Action are considered further in our process.
Now we want to dig a bit deeper. We examine an identified investment regarding their environmental performance and their company health. The former is qualitatively assessed regarding the company's alignment with our environmental framework, while the latter is assessed using financial and governance indicators and benchmarks. Only when our investees’ solutions score high enough will they be taken up into our offerings.
Based on lifecycle thinking, we quantify avoided emissions for our investees' solutions, monetise them, and attribute them to our clients' investments.
If you want to learn more about this process, we suggest you stay tuned and follow up on our working paper once it is published. For more information on the sustainable finance landscape and details on how we see ourselves embedded in it, please have a look at our white paper.