Carbon Quotient provides climate risk analytics that integrate financial and accounting principles with climate action metrics. Their platform helps financial institutions assess and manage climate-related risks within their investment portfolios, informing capital allocation decisions. By combining open-source tools with AI, Carbon Quotient enables a more comprehensive understanding of climate impact.
Funding
Funding not disclosed
Founders
Product
Problem
Financial institutions lack standardized, transparent tools to accurately measure and manage climate-related financial risks within their investment portfolios. Existing climate risk metrics often rely on subjective assumptions and proprietary methodologies, hindering comparability and informed capital allocation decisions. This makes it difficult to assess the potential for asset impairment or stranding due to the energy transition.
Solution
Carbon Quotient provides open-source climate risk analytics that apply finance and accounting principles to quantify climate-related financial risk. The platform integrates forward-looking environmental and financial data to reveal unrealized emissions embedded in long-lived tangible assets. By monetizing these unrealized emissions, Carbon Quotient enables investors and corporate managers to make informed capital allocation decisions that account for the financial risks and opportunities of the energy transition. The Carbon Quotient ratio offers a normalized metric for comparing assets, projects, companies, or portfolios, facilitating the assessment of impairment risk and potential liabilities.
Target Audience
The primary audience includes financial institutions, investors, corporate managers, accountants, and financial analysts seeking to measure, manage, and report climate-related financial risk and the transition to net zero.
Features
- Open-source financial equations and ratios for measuring climate-related financial risk
- Calculation of unrealized emissions embedded in emission-producing long-lived tangible assets
- Monetization of unrealized emissions at the estimated cost to remove them from the atmosphere
- Carbon Quotient ratio for comparing assets, capital projects, companies, or investment portfolios
- Integration of forward-looking environmental and financial data
- Identification and assessment of risks associated with the transition to net zero
- Analysis of climate-related impacts on expected future cash flows