Solutions

Metrics: what we offer

Carbon footprint

This measures annual greenhouse gas (GHG) emissions by an entity, be it a corporate, country or asset. We measure:

  • Scope 1 (direct emissions within an entity's operations)
  • Scope 2 (indirect emissions within an entity's operations, such as electricity consumption)
  • Scope 3 upstream (emissions in the upstream supply chain)
  • Scope 3 downstream (emissions in the downstream value chain)

GHG emissions include all relevant greenhouse gases (CO2, methane, nitrous oxide, etc.); non-CO2 gases are expressed in terms of their equivalence in metric tonnes of CO2.

We can express an entity's carbon footprint in absolute terms (total tonnes of CO2 equivalent emitted per year) or we can calculate carbon intensity (tCO2e emitted per financial unit or physical Key Performance Indicator).

Science-Based 2°C Alignment (SB2A)

Our Science-Based 2°C Alignment (SB2A) metric indicates whether an entity (corporate, nation or asset) is aligned with the Paris Agreement's landmark objective of limiting global temperature rise to well below 2°C compared to pre-industrial levels.

Our analysts calculate the entity's carbon intensity, including Scope 3 whenever relevant. Past trends in emissions performance are taken into account, as well as decarbonization targets. The final score, expressed in °C, represents a global implied temperature rise with which the entity is aligned, through comparison to its sectoral decarbonization target based on external reference trajectories (SBT and IEA models).

Corporate Biodiversity Footprint (CBF)

Biodiversity collapse is increasingly recognized by stakeholders as a global crisis in its own right. Iceberg Data Lab is at the forefront of developing and applying tools to measure and manage financial institutions' impacts on biodiversity.

Iceberg Data Lab developed the Corporate Biodiversity Footprint (CBF) as an indicator of corporate biodiversity impact. This metric reflects the extent to which ecosystems affected by a company's business have been degraded from their pristine natural state. The score factors in a company's land use, nitrogen deposition, GHG emissions and release of toxic compounds. The indicator is expressed in absolute terms (km2.MSA) and can also be calculated in terms of intensity (km2MSA per financial unit or physical Key Performance Indicator).

Green Share

The Green Share calculates the percentage of a company's total aligned activities considered to be "green" according to the EU Taxonomy (DNSH and minimum social safeguards). This metric allows fund managers to verify the compliance of their funds with the EU Taxonomy or to implement exclusion/selection criteria.

Net Environmental Contribution (NEC)

While traditional metrics tend to focus on one specific environmental issue at a time, the NEC combines various factors (water use, air quality, GHG emissions, biodiversity and resource waste) into a holistic environmental impact. The NEC metric is transparent; any stakeholder is free to join the NEC initiative to contribute to the methodology's development in an open process. For more information, please visit the NEC initiative's site.

The NEC ultimately assigns a score from -100% to +100%, indicating a company's deviation from their sector's average impact.

Climate risk

Iceberg Data Lab provides climate risk metrics to equip financial institutions with a straightforward assessment of the physical and transition risks of their portfolio:

  • Physical risk - the sensitivity and exposure of an entity to climate-induced hazards such as intensified storms, droughts, heat waves, etc.
  • Transition risk - the risk posed to an entity by factors associated with transitioning to a net-zero economy, such as shifts in consumer preferences, carbon pricing, technology substitutions, etc.

These risks are considered across a full value chain using geography-specific climate data and sensitivity metrics.

Climate risk is expressed in a score and converted to a financial metric, allowing financial institutions to know the value at risk or the depreciation risk of their portfolio due to climate change.

A broad universe and asset classes covered

Since 2015, Iceberg Data Lab enriches its corporate database on environmental metrics

Govies
Listed companies
Private companies
Loan Book
Green Bonds
Real Assets (Real Estate, Infra, Forests, ...)

  • 20,000 constituents for climate and biodiversity footprints

  • Of which 4,000 constituents analyzed in-depth by IDL analysts

  • Performing granular analysis of company's production and consumption: approximately 800 commodities in database with characteristics

  • Covering the company's value chain (Scope 1, 2 & 3)

  • Each issuer is analyzed once a year based on the latest information available

  • NACE 4 classification

Applications

Enabling Sustainable Goals

The value of our metrics comes in their application. Given the gravity of the issues at hand - climate change, biodiversity collapse, and more - it is critical to translate environmental data into concrete and scalable applications.

Reporting

Reporting (complying with TCFD, EU Disclosure Regulation and Taxonomy, Art. 29 …)
Portfolio analysis (listed and non listed companies, real assets)

Stewardship

Engaging with corporates
Voting policies

Index Solutions

Building universes
Construction of investment strategy

Investment strategies

Portfolio management
Exclusions
Best-in-class

Custom

Customised environmental tool
Loan book assessment
Research