Climate impact rating for investment funds

Climpax - game changer for climate friendly investing.

CLIMPAX will develop the world’s first climate impact rating for investment funds. It is a Climate-KIC innovation project led by South Pole Group and CDP Europe. Working together with key financial industry and NGO stakeholders, the two organisations are developing an easy-to-use tool that will support climate conscious decision-making.

What is CLIMPAX? A holistic climate impact assessment of investments.

CLIMPAX will develop a holistic methodology that includes:

  • Current climate exposure and trends, including underlying holdings’ past emissions and their trajectory;
  • Forward looking indicators, including underlying holdings’ climate strategies;
  • Commitment and policies, including fund managers’ commitment to reducing their climate impact.

Why now? It’s a game-changer for climate-friendly investing.

Financial markets play a key role in tackling climate change. However, most parts of financial markets lack transparency when it comes to the climate impact of an investment. This is especially true for investment funds, which channel millions of private savings into companies’ stocks and bonds every day.

This comes at a time when more and more investors – private and institutional – are concerned about the climate impact of their money and the risk that climate change poses to their savings. At the same time, new investment opportunities from climate change are appearing in which many want to participate, especially since the latest COP in December 2015 in Paris showed the international community will move towards a transition to a low carbon economy.

Transparency is key to action. CLIMPAX will for the first time make the climate impact of a fund transparent, allowing any investor to make divestment decisions in the favour of selecting more climate-friendly funds. The project thus aims to provide a transformational level of transparency to a market of over 29,000 mutual investment funds across the European Union.

 

Better divestment decision with CLIMPAX
Better divestment decision with CLIMPAX

What next? Become involved in CLIMPAX.

In 2016, CLIMPAX will be beta-tested. This includes stakeholder consultations with investors and NGOs. If your are interested in joining the beta-testing please contact:

Viola Lutz, South Pole Group, , +41 (0) 43 501 35 50

Nico Fettes, CDP, , +49 (0)30 311 777 175

 

Who is behind this? A consortium of industry leaders.

The project team is made up of leading institutions in the fields of climate change reporting, carbon footprinting and sustainable finance research.

Name
CLIMPAX
Project Type

Innovation project – Develops and brings to market climate-relevant knowledge, products and services

Lead Partner

CDP Europe

Project Partners

South Pole Carbon

University of Hamburg

University of Reading

Project Manager

Viola Lutz, South Pole & Nico Fettes, CDP Europe

Project Start Date
March 2015
Theme

Decision Metrics & Finance