GenZero, the decarbonisation-focused investment platform, has partnered with Boston Consulting Group, a leading global management consulting firm.
The partnership aims to launch a new Climate Impact Measurement Framework which is set to revolutionise how investors assess the impact of their decarbonisation investments on a global scale.
The need for this partnership has emerged from the growing requirement amongst private capital investors for a reliable and shared framework to measure the climate impact of their decarbonisation investments. As decarbonisation becomes a prominent part of many investment portfolios, the current lack of a standardised method for quantifying its impact has prompted these two global leaders to collaborate on a solution.
GenZero is a pioneering platform, launched by the Singapore-based investment company Temasek. The platform centres its focus on solutions for decarbonisation, providing investors with a clear and quantifiable avenue to contribute towards global efforts in tackling climate change.
On the other hand, BCG is a worldwide renowned management consulting firm that provides advice on strategic, organisational, operational, and technological issues to the world’s leading businesses and public institutions.
Their expertise in strategy development and operational effectiveness makes them a fitting partner in creating this innovative framework.
The newly proposed Climate Impact Measurement Framework is set to introduce four key aspects of climate impact measurement. It covers the nature of the climate impact, such as whether the solutions offer direct, indirect, or transformational impact; the share of climate impact to ascertain attribution concerning ownership share or contribution across the value chain; the timeframe to pinpoint when the impact occurs and is measured, and; a balancing mechanism to evaluate the interplay between the quality, quantity, and cost of climate impact over time.
GenZero CEO Frederick Teo said, “To properly assess the impact of our climate action and investments, we need a shared understanding and consensus on how we measure, track and report decarbonisation. Investors are taking net zero targets seriously and they must be equipped with the right tools as well as quality industry data to assess the impact of their investments.”
Daniel Oehling, Partner at BCG, said, “It is becoming increasingly important to measure the actual climate impact delivered by climate-positive investments. The GenZero Climate Impact Measurement Framework is an important milestone that will accelerate the global conversation and convergence on climate impact measurement, providing a practical framework that investors can apply on their journey to responsible investing.”
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