Asset managers to develop avoided emissions database

Impax, abrdn and Mirova are among 13 firms putting a call out for interest in the project

Mirova, AXA IM and Robeco are among 13 financial institutions coming together to launch a global database of avoided emissions.

Avoided emissions, sometimes called ‘Scope 4’, are emission reductions that occur outside a product’s life cycle or value chain, but as a result of the use of that product, for example, fuel-saving tires.

Unlike induced emissions, which have fairly standardised methodologies, avoided emissions are calculated in a variety of ways by different companies, which jeopardises their credibility and prevents their use at scale.

The group of firms have therefore put a call out to academics, consultants and data providers to express their interest in creating a database by 16 July 2023.

The database would be a full life cycle analysis as well as an attribution of avoided emissions across the entire value chain, and be transparent and accessible in its methodology. It should also contain a precautionary principle with the least advantageous baseline scenario being selected to calculate avoidance factors.

Manuel Coeslier, lead expert, climate and environment at Mirova, said: “The financial sector plays a key role in driving the economy towards net-zero emissions globally. To this end, clear and comprehensive information on companies’ true contribution to the global net-zero objective is essential. This includes a robust measurement of avoided emissions.”

Lucian Peppelenbos, climate and biodiversity strategist at Robeco, added: “Forward-looking metrics are key to increasing climate finance. This includes a credible measurement of avoided emissions. Transparency and a common methodology are essential, and we hope this initiative may contribute towards establishing this.”

The full list of signatories on the call for an expression of interest in this are:

  • Mirova
  • Robeco
  • abrdn
  • AXA IM
  • Comgest
  • Impax Asset Management
  • Natixis Investment Managers
  • OFI AM
  • PGGM
  • Railpen
  • Sienna Investment Managers
  • Smart Pension
  • Sycomore AM

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Natasha Turner

Natasha was global editor at ESG Clarity, part of Mark Allen Financial, and a financial journalist for seven years. She has been shortlisted for Story of the Year and Investment Journalist of the Year...