The sustainable finance arm of Natixis Investment Managers has called for the development of a global database of avoided emissions.
According to Mirova, the Natixis IM unit, such a database could be critical in assisting investment decisions relating to the net zero transition, estimated to cost the global economy $109-275 trillion, according to research by the London Stock Exchange Group.
The initiative is being led by Natixis, in partnership with Netherlands based asset management firm Robeco. Signatories to the so-called call for expressions of interest include PGGM, Smart Pension, and Railpen.
Avoided emissions
Avoided emissions are emission reductions that occur outside of a product's life cycle or value chain, but come about as a result of the use of that product.
Such emissions have been referred to as ‘Scope 4’, and currently lack standardised measurement in the way Scopes 1-3 are assessed.
According to Mirova, avoided emissions are calculated in a variable manner by different companies, which jeopardises their credibility and prevent their use at scale.
The proposed datasets for avoided emissions are to be based on principles including full life cycle analysis as well as an attribution of avoided emissions across the entire value chain, and that the methodology for calculation of avoidance factors should be transparent.
Manuel Coeslier, lead expert for climate & environment at Mirova, said: “The financial sector plays a key role in driving the economy towards net zero emissions globally. To this end, clear and comprehensive information on companies' true contribution to the global net zero objective is essential. This includes a robust measurement of avoided emissions.”
In December of last year, Smart Pension invested £200 million in Mirova’s green bond fund, with the intention of doubling this investment within two years.
