Decarbonization solutions-focused investment platform GenZero announced today the launch of a new Climate Impact Measurement Framework, developed in collaboration with Boston Consulting Group (BCG), and aimed at enabling investors to measure the climate impact of their decarbonization investments globally.
According to GenZero, launched last year by Singapore-based investment company Temasek, the new framework is being introduced as private capital investors increasingly need to embed climate impact measurement into their investment process, but lack a common framework to do so.
Frederick Teo, Chief Executive Officer, GenZero, 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.”
The new framework adopts four key aspects of climate impact measurement, including the type of climate impact being made by the investment, such as whether the solutions have a direct, indirect or transformational impact; the share of climate impact to determine attribution in terms of ownership share or contribution across the value chain; timeframe, to determine when the impact occurs and is measured, and; the balancing of different considerations, to assess the interplay between the quality, quantity and cost of climate impact over time.
Daniel Oehling, Partner, 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.”