2030 Finance | February 19, 2020

Solactive takes stake in startup calculating companies’ climate footprint

Jessica Pothering
ImpactAlpha Editor

Jessica Pothering

ImpactAlpha, February 19 – A Frankfurt-based company, called “right. based on science” (yep, that’s their name) says it has developed a model for analyzing companies’ climate contribution and risk exposure, down to the °C degree. Right’s model is compatible with other climate risk models and churns out data that can be used for setting and managing climate targets, risk management, reporting and communication.

German index provider Solactive paid an undisclosed sum for a minority stake in the company. Solactive’s Steffen Scheuble said it was “astounding to see the share of a company’s contribution to global warming in such a tangible and accurate manner.” Right is working on an open-source version of its model.

The deal comes as European investors and oversight bodies ramp up efforts to mitigate climate risk exposure. The Bank of England is instituting climate stress tests for lenders and insurers in the U.K. Sovereign wealth funds in Ireland and Norway are divesting from fossil fuels companies (see, Fossil-fuel divestment is not just prudent asset-management. It’s the law.)