ESG benchmark provider GRESB has launched Transition Analytics, a new tool designed to help asset owners and managers navigate transition risks with a focus on the most emission intensive sectors.
The tool, developed by GRESB’s Asset Impact Team was originally set up for banks but has now been adjusted to meet the requirements of asset managers and owners aiming to reduce the carbon footprint of their public equity and fixed income portfolios.
It offers users access to an extensive database on asset-based emissions and activity database for 11 of the most emissions-intensive sectors. This database connects over 148,000 physical assets to 3,000 listed companies with stakes in these assets and their 32,000 listed and private subsidiaries.
Transition Analytics provides absolute emissions and physical emissions intensity data for the current year, with forecasts extending to 2030. This allows asset managers and owners to deeply understand the climate impact of their portfolios.
It also enables users to set sector-specific targets aligned with international guidelines, such as those from the Net Zero Asset Owner Alliance or Net Zero Asset Manager Alliance. Additionally, it supports compliance with climate-related reporting requirements like the Sustainable Finance Disclosure Regulation (SFDR) and aids in strategic capital allocation and future transition risk management.
"Asset managers and owners who are aware of the business risks posed by climate change are integrating these considerations into their frameworks to minimise potential losses," said Vincent Jerosch-Herold, GRESB’s chief product officer for Asset Impact. "Our aim is to provide these institutions with the necessary data and insights to protect their investments and decarbonise their portfolios from the ground up."
GRESB was established in 2009 in the Netherlands to benchmark ESG performance and carbon efficiency in the real estate sector, it has since widened its offering to cover a broader scope of alternative assets with investors across the globe using its data as a benchmark.
