Climate impact measurement framework launches

GenZero and BCG enter 'nascent' measurement industry with solution for private climate investments

GenZero, a Temasek-owned investment company based in Singapore and focused on decarbonisation, has launched a climate impact measurement framework in collaboration with Boston Consulting Group for climate-focused private investors.

Attempting to address the “formidable challenge” presented by the “lack of measurement standards and tools as a roadblock to achieving decarbonisation goals”, the groups said, the framework uses four measures, identifying the type of climate impact and investment is having, the share of impact, the timeframe and assessing the interplay between the quality, quantity and cost of climate impact over time.

It also classified impact into three types: direct, indirect and transformational.

Source: BCG and GenZero

Launched at Ecosperity Week 2023, GenZero CEO Frederick Teo said he hoped to “contribute towards an industry consensus on more holistic and robust climate impact measurement.

“This can help us and others make better investment decisions that maximise our climate impact while ensuring sustainable financial returns,” he added.

Daniel Oehling, partner at Boston Consulting Group, said: “It is becoming increasingly important to measure the actual climate impact delivered by climate-positive investments.

“The GenZero Climate Impact Measurement Framework is an important milestone that will accelerate the global conversation and convergence on climate impact measurement, providing a practical framework that investors can apply on their journey to responsible investing.”