Carbon4 Finance - CARBON IMPACT ANALYTICS (CIA) For climate transition risk
Data category
- Environmental data
- Governance data
- Indices/Exchange data
- Rankings
- Ratings
- Research data
- Verification/Certification/External opinion
- Research data
The data offers solutions for:
- Carbon footprinting
- Climate scenario analysis
- Environmental impact analysis and insight
- Investment decisions and portfolio insight
- Nature-based information
- Nature-based information: Water
- Norms-based screening
- Physical risk
- Reporting: CSRD
- Reporting: EU Regulations
- Reporting: ISSB standards
- Reporting: Impact
- Reporting: Other Regulations
- Reporting: SEC climate
- Reporting: SFDR
- Reporting: TCFD
- Reporting: TNFD
- Reporting: UN SDGs
- Temperature alignment
- Transition plan assessments
- Article 29
Who are the data users?
- Corporates
- Financial institutions
- Government
- Investors
- Trustees
- NGO; Schools; Banks; Index providers
Brief description of the data offering
The Carbon Impact Analytics (CIA) methodology and database provides financial sector players with robust, comprehensive qualitative and quantitative indicators to inform their investment and financing decisions, manage climate risk in their portfolios, promote alignment with the low-carbon transition, and meet sustainable finance requirements.
The CIA methodology relies on data reported by companies, verifying them and recalculating them if necessary to enable financial institutions to assess transition and physical risks, measure biodiversity and climate footprints, and evaluate alignment with a 2°C pathway. A recent major evolution significantly enhances the accuracy of the indicators with one of the broadest coverages on the market.
The CIA database covers 42,000 entities, 210 countries, 75 sectors, and the main indexes, including Corporates, Financial Institutions, and Sovereigns. Green bonds are also assessed using a specific methodology.
We provide qualitative, quantitative, and physical indicators such as :
- Emissions induced (scope 1, 2, and 3): as indirect emissions (categorized as scope 3) are significant for most business sectors, it is essential to account for these to have an accurate picture of climate-related risks and opportunities. We provide scope 3 emissions for all sectors, allowing investors to identify areas for improvement as part of a shareholder engagement strategy or to select the best-performing companies within a sector as part of an intra-sector allocation strategy.
- Emission savings (Scope 1, 2, and 3): Beyond the carbon footprint and induced emissions, it is necessary to account for a company’s capacity to contribute to the climate transition. This is integrated in the CIA database via the calculation of emission savings.
- Forward-looking analysis: CIA reflects on the future climate-related performance of analysed companies, providing a qualitative, “forward-looking” analysis which assesses the decarbonisation strategy, the transition plan and other forward-looking criteria.
- Overall rating: All aspects of a company’s contribution are aggregated into an overall rating, which encompasses past, current, and forward-looking scores of all underlying activities of the company. This overall rating allows for thorough comparison between portfolio constituents, or between a portfolio and its benchmark. It also represents a good proxy for the asset’s exposure to transition risks.
Our data is accessible through our platform and SFTP stream. We offer our clients an unlimited number of users and access to our research team. Our platform works with Excel import/export and provides portfolio aggregation.
Where and how do you source your data?
The CIA methodology is based on a detailed approach specific to each sector and activity in order to assess the transition risk performance of companies and economic actors. It is based on individual assessments (bottom-up analysis) of representative companies in 75 sectors and more than 1,200 activities worldwide, using publicly available physical and financial data.
The CIA methodology assesses the carbon footprint on the complete value chain based on financial reports of companies. In fact, Carbon4 Finance collects physical and activity data, converts it into tCO2eq thanks to our emission factors developed by Carbone 4 expertise, and calculates Scope 1 & 2 and Scope 3 emissions. Our 20-strong analyst team scour companies' annual reports to collect reported emissions and physical information to be able to verify and recalculate them if necessary using a bottom-up approach.
To take a concrete example from an automotive company like Toyota. Analysts will open Toyota's annual report and collect the number of hybrid, combustion, and diesel vehicles. They apply different emission factors for the same electric vehicle sold in France and China, as we do not have the same energy mix and therefore not the same Scope 3. Indeed, China's energy mix is much more carbon-intensive. This bottom-up and sector-based approach is our strength.
We cover more than 75 business sectors with this bottom-up approach, thanks to the expertise of the Carbone 4 group, developed through multiple in-depth missions with key actors in each sector. These missions not only enable us to develop sectoral expertise and master the challenges of each sector but also to create emission factors for modelling purposes.
Estimators based on these thousands of bottom-up analyses are then developed using relevant company comparables for each activity concerned and applied to cover a broad additional set of 31,000 companies worldwide, representing 82% of global market capitalization. This approach enables us to cover a total of 42,000 entities.
What is the cost for your data offering?
Our subscription costs are discussed according to our client's needs.