The Australian fintech’s “first of its kind” solution, which is being backed by UK-based Illuminate Financial, local capital firm Artesian VC and local investors in the tech and climate sector, aims to “understand and solve climate risk” and transition portfolios to net zero.
Emmi said its Global Carbon Efficiency Rating (GCER) has assessed over 40,000 globally listed companies and outlines what needs to occur to achieve net zero in a specific timeframe.
Emmi chair Tim Samway said carbon transition is “the biggest risk of our time”, with the fintech’s data-driven system identifying $43 trillion of manageable assets at risk, while 28 per cent of the world’s companies are net-zero compatible.
“The investment sector carries much of the burden of carbon transition risk and if not managed well, it threatens the very stability of our global economic and capital systems,” Mr Samway said.
“Up until now, the investment sector has been without a tool that goes beyond a simple score, and as investors, it is critical to have access to objective and trusted insights that give us confidence to make decisions to protect and grow capital.”
Emmi CEO Michael Lebbon added that carbon risk has previously not been properly considered by investors and that the financial system has failed to factor environmental decisions.
“The financial system now realises it holds the majority of the financial risk associated with climate change, and those investors who do not factor carbon into all decision-making will underperform and see their assets under management drastically reduce,” Mr Lebbon said.