ESG Book has announced a strategic partnership with Zfolio to streamline financed emissions calculations for financial institutions facing climate-related financial risks. This collaboration aims to enhance efficiency and accuracy in managing climate risks, aligning with global regulatory standards.

ESG Book and Zfolio partner strategically to simplify financed emissions calculations.

ESG Book, a leader in provision of sustainability-related data on both public and private companies, today announced a strategic partnership with Zfolio, a leading platform for managing financed emissions. The strategic alliance aims at simplifying and improving financed emissions calculations especially for financial institutions that are facing climate-related financial risks in their investment and lending decisions.

Addressing a Critical Need

As climate change continues to reflate the landscape of finance, managing climatic risks and discovering opportunities in investment portfolios has been at the top of institutions’ agendas. The sophistication of the estimation, monitoring, as well as reporting of climate-related financial risks, particularly financed emissions, has already called for more efficiency and reliability in the solutions developed. ESG Book and Zfolio combine efforts to face the challenge with a streamlined approach to the computation of financed emissions.

The Task Force on Climate-related Financial Disclosures cautioned the financial institutions that had failed to correctly estimate climate risks of facing regulatory repercussions and losing investor confidence. With collaborations between ESG Book and Zfolio, financial institutions can now encounter these challenges face to face by providing a sophisticated tool for calculating emissions that aligns with global regulatory standards.

Important Features of this Partnership

1. Data Integration: Using the wide sustainability data from ESG Book, Zfolio’s platform will invite over 40,000 companies worldwide, providing reported and estimated emissions, Scope 1 and Scope 2, essential information alongside Scope 3, to give those clients an entire view of financed emissions.

2. Automated Calculations: It supports the automated calculations of portfolio emissions with which the clients can associate equities and bonds using the data of over 45 million common identifiers of companies. This does remarkably save time and effort on manual computations for institutional clients and enables them to spend most of their time in strategic decision-making.

3. Holistic Coverage: Apart from equities and bonds, Zfolio calculates financed emissions across asset classes real estate, infrastructure, project finance, and vehicle loans. More importantly, it integrates country-specific emission factors with data on more than four million private companies for a very clear view of what a client is doing.

4. Seamless User Experience. The system aims to make the process as intuitive as possible. Through just a few clicks, institutional investors can obtain fully financed emissions computations on large portfolios. Ease of use is crucial because more and more institutions strive to incorporate assessments of climate risk into their operational frameworks.

What Industry Leaders Are Saying

Maria Mähl is the head of US client solutions at ESG Book: “This partnership is well-timed, considering the current state of finance: “Given the complexities of financed emissions, financial institutions are increasingly turning to advanced tools that can achieve greater accuracy and efficiency in meeting climate transition goals. Through our new partnership with Zfolio, we are excited to offer clients the market’s leading solution to address their portfolio emissions needs.”.

Combining the quality and breadth of ESG Book data with Zfolio’s technology means asset managers of any size can get the most accurate financed emissions calculations easily and efficiently from a source across all asset classes. No other platform in the market has that capability, ” said Peter Howard, Founder and CEO of Zfolio.
The Bottom Line

With changing climate risks, it has never been so important to have the precise and efficient tool to manage financed emissions. ESG Book along with Zfolio enables financial institutions to navigate this complexity through a strong solution in emissions calculations. Clients now can serve results combining the latest global regulatory standards with more detailed breakdowns of emissions.

The integration of ESG Book’s rich data with ZFolio’s novel technology will simplify calculations but also enhance the ability of financial institutions to meet their climate transition goals. The partnership represents a major step toward fostering a more resilient and environmentally responsible investment landscape, given the increasing recognition of the significance of sustainability across the financial sector.

With the global world shifting towards a green economy, the ability to accurately assess and report financed emissions will play a pivotal role in forming investment decisions for the future. This partnership, therefore, is an example of a very forward-thinking approach aimed at ensuring that the financial institutions are not only well-equipped but also potent enough to thrive in the environmentally cognizant marketplace.

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