A new index designed to provide a holistic view of corporate decarbonisation activities is set to be developed, with BearingPoint’s I Care and Winrock International today selected to take its creation forward.
The Corporate Climate Contribution Index (CCCI) aims to give investors and the public a clearer picture of which companies are making extra efforts to contribute to the reduction of global greenhouse gas (GHG) emissions.
Philippe Zaouati, chief executive officer of Mirova, which, along with Sweep, selected the two firms to develop the index, said: “The Corporate Climate Contribution Index is a key part of a broader strategy to enhance engagement policies and accelerate the transition of companies towards sustainable practices.”
The CCCI follows the launch of the Avoided Emissions Platform (AEP) by a group of asset managers, including Edmond de Rothschild Asset Management, Mirova and Robeco. The platform is intended to help investors credibly quantify the impact of companies facilitating decarbonisation.
By adopting a holistic approach, the CCCI aims to help companies prioritise the actions that will most effectively contribute to global net zero goals. For investors, the index is intended to improve their assessments of corporate climate performance, inform decarbonisation strategies, and enhance engagement efforts.
Moreover, the CCCI is hoped to encourage better climate action across industries.
The development of the CCCI and the launch of the AEP come as asset owners are increasingly looking to integrate climate solutions investments into their portfolios and adopt more nuanced approaches to assessing corporate carbon mitigation activities.
Among these emerging approaches is ‘beyond-value-chain mitigation’ (BVCM), a concept referring to decarbonisation efforts that extend beyond a company’s direct operations and value chain. Such initiatives aim to encourage real-world emissions reductions and support transition plans.
Guillaume Neveux, founder and partner at I Care by BearingPoint, said: “The climate contribution of companies cannot be assessed with a ‘one-size-fits-all’ indicator.
“We see the CCCI initiative as a real opportunity to define a ‘meta-indicator’ that captures the specific decarbonisation levers available to each company, depending on its sector and position within the value chain.”
Brad Schallert, director of net zero services at Winrock International, added: “Having a validated science-based target is not enough for investors to compare companies with one another. The CCCI could be the mechanism that allows investors and other stakeholders to see greater differentiation among companies.”
The methodology behind the CCCI will score corporate climate contribution efforts primarily across three levers: direct decarbonisation, indirect decarbonisation through climate solutions, and climate financing.
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