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
Helsinki launches Climate Watch to track city’s emission reductions

The City of Helsinki recently launched the ‘Climate Watch’,...

Helsinki launches Climate Watch to track city’s emission reductions
In The News
First European cluster accelerator programme launched in Frankfurt

How to take clusters to the next level and...

First European cluster accelerator programme launched in Frankfurt
Innovation Spotlight
Ioncell’s fiber innovation could help drive the circular economy transitio...

The textile, garment and fashion industries generate tonnes of pollution each year and recycle very little, which...

Ioncell’s fiber innovation could help drive the circular economy transition
Opinion
The challenge of redesigning venture capital
Dominic Hofstetter Transformation Capital, EIT Climate-KIC
The challenge of redesigning venture capital
In Detail
Clean and Healthy Construction

Insights from the C40 World Mayors Summit in Copenhagen: Master Class and Market Dialogue for Clean and Healthy Construction. Why clean construction? Kevin Austin,...

Clean and Healthy Construction
Opinion
If we have figured out transformation, why is the world still in such a mess?
Susannah Fisher Research, EIT-Climate-KIC
If we have figured out transformation, why is the world still in such a mess?
Opinion
The tyranny of categorisation
Dominic Hofstetter Transformation Capital, EIT Climate-KIC
The tyranny of categorisation
Opinion
EIT Climate-KIC strengthens biodiversity through systems change
Felicity Spors Head of International Affairs, EIT Climate-KIC
EIT Climate-KIC strengthens biodiversity through systems change
Opinion
Why our cities must act as beacons for ambitious climate action
Tom Mitchell Chief Strategy Officer, EIT Climate-KIC
Why our cities must act as beacons for ambitious climate action
In The News
Biggest-ever global hackathon to tackle climate breakdown

Over 100 Climathon events around the world turn grassroots...

Biggest-ever global hackathon to tackle climate breakdown
In The News
Global call for transformative solutions to tackle the climate emergency

EIT Climate-KIC launches Climathon Global Awards and Healthy, Clean...

Global call for transformative solutions to tackle the climate emergency
In The News
EIT Climate-KIC supported crop insurance project acquired by world’s largest...

The insurance sector is well aware of the rising...

EIT Climate-KIC supported crop insurance project acquired by world’s largest re-insurer
In The News
EIT Climate-KIC innovators celebrated at 2019 EIT Awards

The European Institute of Innovation and Technology (EIT) has...

EIT Climate-KIC innovators celebrated at 2019 EIT Awards
Opinion
Part three: Climate action #NotinNewYork
Andy Kerr Director, UK & Ireland, EIT Climate-KIC
Part three: Climate action #NotinNewYork
In Detail
New EIT Climate-KIC supported report finds digital technologies can vastly a...

As part of the UN Climate Action Summit, the Global Enabling Sustainability Initiative (GeSI) and Deloitte launched a report today, supported by EIT Climate-KIC,...

New EIT Climate-KIC supported report finds digital technologies can vastly accelerate the SDGs
Opinion
Part two: Climate action #NotinNewYork
Andy Kerr Director, UK & Ireland, EIT Climate-KIC
Part two: Climate action #NotinNewYork
Opinion
Climate action #NotinNewYork
Andy Kerr Director, UK & Ireland, EIT Climate-KIC
Climate action #NotinNewYork
In The News
Circular Cars Initiative launched at United Nations Climate Action Summit

On the occasion of the United Nations Climate Action...

Circular Cars Initiative launched at United Nations Climate Action Summit
In The News
We’re closing for business in solidarity with #ClimateStrike

EIT Climate-KIC will close this Friday 20 September, the...

We’re closing for business in solidarity with #ClimateStrike
In The News
Open Innovation Call targeting air quality and urban heat island effect launch...

The City of Copenhagen’s department Resilient and Sustainable City Solutions within...

Open Innovation Call targeting air quality and urban heat island effect launched
In The News
EIT Climate-KIC cleantech start-up ZOLAR attracts 10 Million Euro Investment

The Berlin-based start-up Zolar raises a 10 million EUR...

EIT Climate-KIC cleantech start-up ZOLAR attracts 10 Million Euro Investment
In The News
Breaking down barriers to climate-finance: the City Finance Lab launches secon...

Competition for the five most innovative financing solutions for...

Breaking down barriers to climate-finance: the City Finance Lab launches second call for proposals
Opinion
Innovating in complexity: Systemic investing
Dominic Hofstetter Transformation Capital, EIT Climate-KIC
Innovating in complexity: Systemic investing
In The News
Climathon onboard ‘Sail to the COP’

On 2 October, 36 young climate change agents will...

Climathon onboard ‘Sail to the COP’
In The News
Research reveals surprising link between socio-economic indicators and sustain...

A new study by EIT Climate-KIC partner academic institutions...

Research reveals surprising link between socio-economic indicators and sustainability transition
Opinion
Transformation capital: A new investment logic for catalysing systems change
Dominic Hofstetter Transformation Capital, EIT Climate-KIC
Transformation capital: A new investment logic for catalysing systems change
Opinion
Innovating in complexity: From single-point solutions to directional systems innovation
Dominic Hofstetter TRANSFORMATION CAPITAL, EIT CLIMATE-KIC
Innovating in complexity: From single-point solutions to directional systems innovation
In The News
Four EIT Climate-KIC innovators nominated for annual EIT Awards

The European Institute of Innovation and Technology (EIT) has released...

Four EIT Climate-KIC innovators nominated for annual EIT Awards
In Detail
Report offers recommendations for development of agricultural impact tool

A new report supported by EIT Climate-KIC’s CSA Booster programme proposes technical, governance and business arrangements for the development of a new tool for...

Report offers recommendations for development of agricultural impact tool
In Detail
Food value chains strategy report offers recommendations based on systemic i...

A new report details the work of EIT Climate-KIC and its partner Metabolic, a consulting company using systems thinking to tackle major sustainability challenges,...

Food value chains strategy report offers recommendations based on systemic impact