Sphera unveils new tool for sustainable portfolio management


Sphera, an ESG performance and risk management software firm, has launched its SpheraCloud Corporate Sustainability–Portfolio Management product. 

Founded in 2016, the company is known for its cutting-edge SaaS software, proprietary data, and consulting services.

The new product has been introduced to empower financial institutions to accurately measure financed and portfolio emissions. This innovative tool will also enable the assessment of climate-related risks and opportunities, ultimately meeting ESG reporting requirements. The launch marks a significant step forward for institutions striving to meet growing sustainability goals.

Sphera’s core competency lies in aiding organisations globally to expose, manage, and mitigate ESG risk. Their comprehensive portfolio includes environment, health, safety, and sustainability management, operational risk management, and product stewardship. The company’s remarkable expertise led to its acquisition by Blackstone, the alternative investment manager, in 2021 for $1.4bn.

SpheraCloud Corporate Sustainability–Portfolio Management is a software solution that utilises artificial intelligence and advanced analytics. This enables lenders and investors to gather, calculate, report, and manage financed emissions efficiently. The solution encompasses automated data collection, a robust calculation engine, integrated emissions factor libraries, portfolio performance management, and audit-proof reporting.

An exceptional feature of this software solution is its standardised methodology for measuring financed emissions. This has been created in alignment with the Partnership for Carbon Accounting Financials (PCAF) and Greenhouse Gas (GHG) Protocol standards.

Additional significant information includes Sphera’s alliance with PwC, a global professional services firm. This collaboration, established last year, grants PwC’s clients access to Sphera’s ESG software solutions. Both PwC and Sphera are set to work together to optimise this new solution for financial institutions.

In highlighting the implications of this new product, Blackstone Senior Managing Director Eli Nagler said, “Blackstone’s investment in Sphera in 2021 represents our alignment on the ability of an ESG strategy to provide enhanced opportunities to create strong, resilient companies and assets that drive value for our investors and supporting businesses globally as they position themselves for success. This newest solution is the latest example of Sphera continuing to bring to market audit-ready solutions that facilitate sound ESG reporting.”

Sphera CEO and President Paul Marushka emphasised the mission of the company, stating, “Enabling companies to set science-based targets and accurately measure and report on their carbon footprint is critical to our mission of creating a safer, more sustainable and productive world. To support the transition towards a more sustainable economy, financial institutions need to adapt their business models and put the necessary tools in place in advance of current and upcoming regulatory policies.”

Sammy Lakshmanan, a Principal at PwC, also expressed his views, “Calculating financed emissions is extremely complex, but it is of utmost importance for financial entities to have a holistic view of their GHG inventory and identify climate-related risks and opportunities. PwC is excited to continue collaborating with Sphera, helping bring these new capabilities to the market to support financial institutions with reporting in line with PCAF standards.”

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