Some Welcomed Attention to Environmental Impact Reporting
Environmental impact measurement is finally getting greater attention in the investment world. Increasing demand for carbon pricing, continuous geopolitical strife, and new regulations mandating more detailed transparent disclosure on environmental reporting and emissions make this a pivotal time for cleantech investing. Institutional and private investors alike are positioning themselves to harness the opportunities that climate change presents. To ensure these investments are going to environment-improving solutions, accurate and reliable data is required.
When it comes to analyzing a company’s environmental outcomes, science-based impact measurement is the key to success. This is what Boundless does better than our competitors: use science and employ objective industry experts to analyze and validate environmental performance data. Our evidence-based analysis helps investors to de-risk their cleantech investments in companies and funds.
Our method bridges the gap between climate science and mainstream finance by relying on both as lenses through which to evaluate their true environmental impact. Eventually it will be crucial for standardized metrics to be developed in order to level the playing field and allow investors to compare apples to apples. At Boundless, our vision is to be the gold standard for environmental impact reporting.
It is clear that climate impact measurement will only become more central to the financial concepts of risk and value as markets evolve and as climate change policy takes center stage in the coming decades. BlackRock, for example, launched their Aladdin Climate module in December of 2020. This software was built to “quantify climate change and opportunities in financial terms''. Congress has even built a model for gauging the financial impact of climate change and assess climate risks as part of Federal Budget decisions.
Though we cannot predict the future, world-altering decisions by asset allocators and governments involving trillions of dollars cannot be made with data based on assumptions. Only when science-based accuracy is fully integrated into company impact reports can investors and companies start to really beat the odds against climate change.
