Shaping the Climate Landscape

Throughout our history, IDEAglobal Group has been at the forefront of developing solutions to address climate change and its associated risks. Notable milestones in our journey include:

• Advising Gujarat State’s Climate Policy: We provided advisory services to Chief Minister Narendra Modi and the State of Gujarat, shaping the foundational elements of their state climate policy framework. This advisory played a pivotal role in incubating the national climate plan, which would later give rise to the Solar Alliance.
• Guiding the UN Global Compact’s Carbon Pricing Champions: Our expertise extended to the United Nations Global Compact (UNGC), where we provided guidance to their leading Carbon Pricing Champions on setting internal carbon prices. The Carbon Ratings Agency, a part of our group, contributed by developing the Geo/Sector Carbon pricing model for UNGC members.
• Empowering Arnold Schwarzenegger’s G20 Regions Group: IDEAglobal Group advised Arnold Schwarzenegger’s G20 Regions Group, assisting in the creation of effective structures and financing frameworks for their regional members to fund climate-related projects and actions.

Benchmark Climate Risk Solutions

In 2018, IDEAglobal Group intensified its commitment to benchmark solutions for managing climate risk. We became advisors and strategic investors in Veridium Labs, an organization at the forefront of blockchain-based climate risk solutions, with the backing of IBM. Our collective solutions are designed to accelerate the transition toward lower carbon portfolio selection at the institutional investor level.

Calculating Carbon Liability of Listed Companies

One of our flagship products is a tool for calculating the carbon liability of publicly listed companies. At the enterprise level, it dynamically and comparatively assesses climate risks in real time, utilizing consistent data and a uniform methodology. Our proprietary harmonized dataset captures level 3 data, enabling cross-company and cross-sector comparisons among the world’s top 1,000 listed companies. This tool empowers investors to rank companies based on their inherent exposure to carbon risk, a critical aspect for chief investment officers striving to optimize a “climate risk-resilient” portfolio.

Our carbon risk product is currently in beta testing and is now poised for evaluation by a select group of institutional investors. We anticipate that this product will become a pivotal benchmark solution, aiding investors grappling with multiple Environmental, Social, and Governance (ESG) standards, while providing regulators with a practical and effective means of enhancing the resilience of their financial systems to climate risk.

Supplying Natural Capital Assets Against Carbon Liabilities

The second component of our product portfolio is a blockchain-based natural capital-backed currency, supported by IBM. This innovative solution aims to enable “natural capital assets,” grounded in fundamental valuation aligned with the United Nations Sustainable Development Goals, to be tradable alongside other asset classes. Our proprietary model has been meticulously designed to facilitate the creation of financing vehicles such as bonds, leveraged loans, and ETFs, catalyzing the “supply” of scalable and tradable natural capital assets.

Future Focus

As we look to the future, our core areas of focus from 2020 to 2025 are:

• Climate Risk Assessment Tools and Platforms: Continuing to develop cutting-edge climate risk assessment tools and platforms to empower informed decision-making.
• Natural Capital Asset Structures: Expanding our portfolio to provide natural capital asset structures that integrate seamlessly into the balance sheets of corporations and institutional investors.
• Natural Capital-Backed Tokens/Currency: Pioneering blockchain-based natural capital-backed tokens and currency to further advance sustainable financial practices.