Investment Strategies

Bespoke Inference & Corporate Engagement
 

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Urgentem works closely with clients to provide the coverage and detail of climate data they require. We are able to further enhance our emissions dataset to meet clients’ needs with our transparent and statistically robust inference methodology.

 

As well as using the inference methodology to model incorrect, incomplete, or missing emissions data, additional factors and enhancements can be incorporated to tailor our models to specific use cases, such as sector specific applications. This is particularly useful for private companies, where disclosures are limited. 

Our bespoke inference supports our clients' alignment with the PCAF footprinting methodology, by taking asset class specific guidance into account.

 

Urgentem’s Climate Solutions team works with our Corporate Engagement team to effectively collect and incorporate additional data points into our inference methodology. The corporate engagement team has extensive experience engaging with corporates, building relationships with sustainability teams via our annual engagement process, and design and execute bespoke data collection programmes.

 

These additional data points can include, but are not limited to:

  • Total energy consumption

  • Renewable energy purchased

  • Scope 3 category relevance

  • Production volumes

  • Floor area (Real estate)

Case Study: Folksam

Folksam, a large Swedish pension firm, was seeking to develop a well structured strategy for corporate engagement on climate change issues. They wanted to identify the key sectors and companies with high carbon exposure within their portfolio in comparison to the company's peers. They had a specific requirement to better understand the materiality of Scope 3 emissions for the various sectors they were exposed to.

 

 

Using Urgentem’s Scope 1, 2 and 3 emissions dataset and forward-looking metrics such as Scenario Analysis,  we identified and engaged with companies particularly at risk in a low-carbon transition. This included companies that were not disclosing, or underreporting their Scope 3 footprint for categories that were deemed material for their business. As a result of this exercise, Folksam effectively used corporate engagement for their climate risk management and saw many of their investee companies greatly enhance the quality of their reported data during the following disclosure year.

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