Mirova, Robeco Launch Avoided Emissions Platform

The investment community will be able to move towards much greater accuracy and transparency of climate impact measurement with the launch of the Avoided Emissions Platform (AEP). This new undertaking, supported by more than $4 trillion in assets under management (AUM), is intended to offer a standardized, open-access approach for calculating avoided emissions—informally known as "Scope 4" emissions. The platform is being created with support from influential asset managers, corporate banks, data providers, and large corporations, making it a pivotal instrument in the global push towards net-zero emissions.

AEP is led by Mirova, Robeco, Edmond de Rothschild AM, I Care by Bearing Point, and Quantis, BCG company. Its main goal is to fill a long-time gap in sustainable finance: the absence of homogenous, clear data to measure the actual climate effect of decarbonization solutions. Through the introduction of an internationally credible framework, the platform seeks to provide investors, corporates, and regulators with the tools to make science-informed, net-zero-aligned decisions.

One of the defining characteristics of the Avoided Emissions Platform is its interactive model, which incorporates avoided emissions factors for 65 unique climate solutions. Designed with input from a scientific advisory committee, the platform provides complete transparency in methodology so that users can have faith in applying its data to investment choices, corporate reporting, and regulatory analysis. In addition, the platform has been built to change over time, increasing its coverage as new climate solutions arise.

The importance of this effort cannot be overemphasized, especially in the context of the massive capital investment needed to achieve global net-zero goals. Experts put the cost of transitioning to a low-carbon economy at $215 trillion by 2050. It is critical that capital is being channeled into actual decarbonization efforts and not mere superficial sustainability rhetoric, and the harmonized metrics offered by AEP will be instrumental in making this happen.

As Manuel Coeslier, a principal champion of the initiative, puts it, the finance sector has a significant role in steering the global economy to net-zero emissions. He stresses that giving clear and comprehensive information about the actual contributions of companies to climate solutions is the cornerstone of this shift. The Avoided Emissions Platform is set to be a pre-eminent global market instrument, boosting ambition and transparency in avoided emissions measurement.

The advantages of AEP cut across many sectors. Asset owners and managers will be in a position to utilize the uniform metrics to make their portfolios aligned with net-zero goals, enhancing their capacity to spot and invest in high-impact climate solutions. Corporates will benefit from a strong framework for quantifying and reporting on avoided emissions, enabling them to build stronger market credibility and raise capital more effectively. Consultants and data companies will be able to distinguish themselves through AEP's methods and collaboration software, and policymakers will use the platform to inform climate regulations and monitor national and global progress. Academic institutions will also gain from having access to fine-grained, trusted datasets that can enable sustainability research and innovation.

For Robeco, one of the world's foremost asset managers in support of the initiative, AEP is a significant milestone for sustainable investment methods. Robeco climate strategist Lucian Peppelenbos draws attention to the firm's commitment to investing in the net-zero transition dating back many years. He says Robeco's range of climate-dedicated investment products, like the Smart Energy and Global Climate Transition funds, have been supporting climate solutions since years ago. AEP's launch will now allow the company to more accurately measure the real effect of such investments, fulfilling the increased demand from clients for complete and sound impact measurement.

While the financial industry struggles with how to find and fund genuine climate solutions, AEP offers an indispensable tool to increase integrity, comparability, and trust in climate effect assessments. Standardizing avoided emissions metrics, the platform will direct investments into the best decarbonization initiatives, pushing the global drive toward net-zero emissions faster.

Backed by leading finance and sustainability players, the Avoided Emissions Platform is ready to become a go-to tool for investors, businesses, and regulators seeking to make informed decisions in the battle against climate change. As the initiative grows and evolves with the latest developments in the sector, it is going to be at the forefront of determining the future of sustainable finance and ensuring that capital flows support meaningful climate action.