ESG performance and risk management software, data and services provider Sphera announced today the launch of SpheraCloud Corporate Sustainability–Portfolio Management, a new foftware solution aimed at enabling financial institutions to measure financed and portfolio emissions, as well as to assess climate-related risks and opportunities and meet ESG reporting requirements.
Founded in 2016, Sphera offers SaaS software, proprietary data and consulting services, helping organizations around the world to surface, manage, and mitigate ESG risk in the areas of Environment, Health, Safety & Sustainability, Operational Risk Management and Product Stewardship. The company was acquired in 2021 by alternative investment manager Blackstone in a deal valuing Sphera at $1.4 billion. Blackstone announced last year that it is integrating Sphera’s carbon accounting solutions, to support its initiative to reduce emissions across its portfolio.
Sphera said that it worked with Blackstone to engage expertise to develop the new solution for the financial services industry and its investors.
Eli Nagler, Senior Managing Director at Blackstone, 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.”
According to Sphera, the new solution uses AI and advanced analytics to allow lenders and investors to collect, calculate, report and manage financed emissions, and includes key features including automated data collection, a robust calculation engine, integrated emissions factor libraries, portfolio performance management and audit-proof reporting.
The modular software solution provides a standardized methodology to measure financed emissions, utilizing the Partnership for Carbon Accounting Financials (PCAF) and Greenhouse Gas (GHG) Protocol standards.
Sphera CEO and President Paul Marushka said:
“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.”
Sphera announced an alliance with global professional services firm PwC last year, providing PwC’s clients with access to Sphera’s ESG software solutions. PwC and Sphera said that they will work together to leverage the new solution for financial institutions.
Sammy Lakshmanan, a Principal at PwC said:
“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.”