EIT Climate-KIC’s Carbon Delta takes on climate disclosures project with the UN

Carbon Delta, the climate risk analysis company supported by EIT Climate-KIC, has raised €1.5m (1.7m Swiss Fr) to expand its team, ahead of a major climate-related financial disclosures project with the UN Environmental Program Finance Initiative (UNEP FI).

The Swiss-based company, which went through EIT Climate-KIC’s Accelerator programme in 2015-2016, is working with 13 major asset management companies including Nordea Investment Management, Norges Bank Investment Management and Rockefeller Asset Management to develop a climate risk tool and online portal with functionalities that will support the work of the Task Force on Climate-related Financial Disclosures (TCFD).

An availability of forward-looking climate change assessments

The project, with UNEP FI — the global partnership between the United Nations Environment Program (UNEP) and the financial sector to implement sustainability principles into financial institutions — kicked off last month (June 2018) and will conclude early next year. The results of the work, detailing the process to help achieve initial forward-looking climate change assessments, will be then made available to all financial institutions.

“This should help move the industry closer to the transparent disclosure of climate change related risks and opportunities of equities, corporate bonds and real estate within investment portfolios,” said David Lunsford, Co-founder and Project Manager, Carbon Delta.

At the same time, Carbon Delta is planning to plough its recent investment into building out its team to include more software engineers and client advisers, according to Oliver Marchand, Co-founder and CEO, Carbon Delta. Additionally, the company is looking to establish a subsidiary in Potsdam, with this branch working mostly on software development and physical risk modelling.

Climate considerations can be mainstreamed into financial decision-making through comprehensive models that reveal climate risks and opportunities for investors, according to Carbon Delta. Currently, professional investing doesn’t adequately factor in climate change. Climate change risks aren’t properly accounted for, nor are the gains of climate-smart investment. This is due to the broad scope of climate change as well a lack of awareness in the financial industry, ultimately resulting in a shortage of data.

Every transaction should account for climate

To address this, Carbon Delta’s analysis of more than 20,000 publicly-listed companies aims to translate the climate change risks and opportunities into costs and profits, before projecting the potential price changes of stocks and bonds for investors.

“Although we are all invested in capital markets through our pension funds, often, we know very little about the details of investments that are made with this money. This gap presents a fantastic opportunity for fundamental change. Every financial transaction should take climate change into account. In total, that’s a very broad spectrum of opportunities,” said Marchand.

“We are starting to see the financial sector integrating climate change into their investment activities, which we see as a huge lever towards achieving the goals of the Paris Agreement. Ultimately, we would like to see the long-term costs of climate change to be properly priced in capital markets. This would be beneficial for investors and the public alike,” added Marchand.

2016 Venture Competition winner

Carbon Delta participated in both stage one and stage two of EIT Climate-KIC’s Accelerator programme. During stage two, it won EIT Climate-KIC’s 2016 Venture Comptetition and was awarded an additional €80,000 in prize money. EIT Climate-KIC supports Carbon Delta as part of its work to mainstream climate in financial markets.

 
Location
Related Goal
Goal 10: Mainstream climate in financial markets
Articles you may be interested in
In The News
EIT Climate-KIC to work with Google on Impact Challenge

EIT Climate-KIC is delighted to announce that it will...

EIT Climate-KIC to work with Google on Impact Challenge
In Detail
EIT Climate-KIC’s case studies on innovative land use set the stage fo...

EIT Climate-KIC launches ‘Innovations in land use,’ a collection of case studies demonstrating the organisation’s innovation-led, systemic approach that’s poised to help Europe deliver...

EIT Climate-KIC’s case studies on innovative land use set the stage for transforming whole systems
In The News
What role can finance play in the green recovery? EIT Climate-KIC and UNEP Fin...

EIT Climate-KIC, in partnership with the UNEP Finance Initiative,...

What role can finance play in the green recovery? EIT Climate-KIC and UNEP Finance Initiative ask leading thinkers to weigh in
In The News
EIT Climate-KIC supports European green recovery with €4 million for start-u...

EIT Climate-KIC is investing €4 million in nine climate...

EIT Climate-KIC supports European green recovery with €4 million for start-ups affected by COVID-19
Opinion
How public servants can engage unlikely allies to deliver climate policies
Juan Azcarate Deputy director of Energy and Climate Change, Madrid City Council
How public servants can engage unlikely allies to deliver climate policies
In The News
The City Finance Lab calls on urban leaders to help build back better

Organised by sustainability expert South Pole, the competition for...

The City Finance Lab calls on urban leaders to help build back better
In The News
EIT Climate-KIC supported cities – Leuven, Milan, Valencia and Vienna no...

Twelve cities are in the final stage of the...

EIT Climate-KIC supported cities – Leuven, Milan, Valencia and Vienna nominated as European Capital of Innovation 2020
Opinion
Going beyond investments in single-point solutions, an Opinion by Kirsten Dunlop
Kirsten Dunlop CEO, EIT Climate-KIC
Going beyond investments in single-point solutions, an Opinion by Kirsten Dunlop
In The News
The climate emergency demands bold policy innovations – can cities d...

While the challenges of climate change and a global...

The climate emergency demands bold policy innovations – can cities deliver? 
In The News
EIT Climate-KIC joins circular economy side event at UN High Level Political F...

“Bold leaders are needed to drive a collaborative approach...

EIT Climate-KIC joins circular economy side event at UN High Level Political Forum on Sustainable Development
In The News
EIT Climate-KIC and Silesian Metropolis join forces to transform Europe’s la...

EIT Climate-KIC and the Metropolitan Association of Upper Silesia...

EIT Climate-KIC and Silesian Metropolis join forces to transform Europe’s largest coal region in the face of the climate crisis
In The News
Anders Wijkman represents EIT Climate-KIC at the International Society for the...

Speaking online at the inaugural Conference of IS4CE—the International...

Anders Wijkman represents EIT Climate-KIC at the International Society for the Circular Economy Conference
In The News
EIT Climate-KIC receives €8.4 million for innovation projects that stimulate...

Eleven climate innovation projects across Europe tackling COVID-19 related...

EIT Climate-KIC receives €8.4 million for innovation projects that stimulate job creation and support a post COVID-19 green recovery
In The News
CEO Kirsten Dunlop represents EIT Climate-KIC at Climate Policy Forum

On 25 June, EIT Climate-KIC attended the Climate Policy...

CEO Kirsten Dunlop represents EIT Climate-KIC at Climate Policy Forum
In Detail
A net zero future offers significant opportunities for the European economy,...

EIT Climate-KIC’s views on the EU 2030 Climate Target Plan.  The recent announcements from the European Commission on the EU Recovery Plan from the...

A net zero future offers significant opportunities for the European economy, society and citizens
In The News
EIT Climate-KIC supported LOOP-Ports project wins prestigious sustainability a...

The LOOP-Ports project, led by the Fundación Valenciaport  and funded by EIT Climate-KIC,...

EIT Climate-KIC supported LOOP-Ports project wins prestigious sustainability award
In The News
EIT Climate KIC joins roundtable as Republic of Korea moves Green Deal forward

On 24 June, EIT Climate-KIC attended the 7th Green...

EIT Climate KIC joins roundtable as Republic of Korea moves Green Deal forward
In our community
Water scarcity in Southern Europe: Manufacturing expert insights
Water scarcity in Southern Europe: Manufacturing expert insights
Opinion
A scientist’s opinion: Interview with Cliona Howie Del Rio about systems thinking
A scientist’s opinion: Interview with Cliona Howie Del Rio about systems thinking
In Detail
Citizen activation is essential for Europe to meet its climate ambition

EIT Climate-KIC provides ideas for action under the European Climate Pact. The debate on how to achieve ambitious climate targets is often dominated by...

Citizen activation is essential for Europe to meet its climate ambition
In The News
EIT Climate-KIC shines at the GLF Bonn Digital Conference, the year’s la...

EIT Climate-KIC’s Director of Sustainable Land Use and member...

EIT Climate-KIC shines at the GLF Bonn Digital Conference, the year’s largest global digital conference on the environment
In The News
EIT Climate-KIC supported Climeworks raises over €67 million to expand its c...

Climeworks, the world leader in capturing CO2 from air,...

EIT Climate-KIC supported Climeworks raises over €67 million to expand its carbon dioxide removal capacities
In The News
EIT Climate-KIC supported Zeleros raises €7 million for the development of h...

EIT Climate-KIC supported Zeleros Hyperloop has completed a financing...

EIT Climate-KIC supported Zeleros raises €7 million for the development of hyperloop in Europe
In our community
A just transformation for Rugeley, as the power station comes down
A just transformation for Rugeley, as the power station comes down
In Detail
Challenging paradigms as the gateway to innovation: New IIPP report for EIT ...

EIT Climate-KIC partner the UCL Institute for Innovation and Public Purpose (IIPP), which works on changing how public value is imagined, practiced and evaluated...

Challenging paradigms as the gateway to innovation: New IIPP report for EIT Climate-KIC’s Landscapes as Carbon Sinks Deep Demonstration
In our community
Water scarcity in Southern Europe: Raw materials expert insights
Water scarcity in Southern Europe: Raw materials expert insights
In Detail
Challenge-led system mapping: A knowledge management approach

The challenge-led system mapping approach responds to the need to improve the practitioner’s capacity to move towards system change by providing mechanisms by which...

Challenge-led system mapping: A knowledge management approach
In The News
EIT Climate-KIC is restructuring to deliver systems transformation for climate...

EIT Climate-KIC is restructuring to provide “systems transformation as...

EIT Climate-KIC is restructuring to deliver systems transformation for climate change
In our community
Water scarcity in Southern Europe: Food expert insights
Water scarcity in Southern Europe: Food expert insights
In The News
EIT Climate-KIC and partners reassess our values in the ‘new normal’

EIT Climate-KIC, together with Edgeryders, ETH Zurich and IOTA,...

EIT Climate-KIC and partners reassess our values in the ‘new normal’