ESG data provider GRESB’s asset impact team has designed a transition-focused tool to help asset owners and managers better manage transition-related risks in their public equity and fixed income portfolios. Transition Analytics covers 11 of the world’s most emissions-intensive and climate-critical sectors, including power, and links more than 148,000 physical assets to 3,000 listed companies that own stakes in them – alongside 32,000 listed and private subsidiaries. “Rather than just having access to granular data, investors increasingly want asset-based insights quickly to inform the transition of their portfolios,” Vincent Jerosch-Herold, Chief Product Officer at GRESB’s Asset Impact, told ESG Investor. “By starting at the asset-level and producing indicators at the company-level, we’re able to address a lot of the flaws that exist within corporate reporting, [including] the absence of forward-looking data.” The tool’s absolute and physical emissions data goes as far as 2030, giving investors the ability to stress-test their investment strategies and form an idea of future impacts in their portfolios. They are also be able to select bottom-up sectoral targets in line with guidelines issued by the Net Zero Asset Owner Alliance (NZAOA) and Net Zero Asset Manager initiative (NZAM). “We wanted to strike a balance between providing investors with top-level analysis and more granularity, so users can quickly identify high-level transition signals – such as whether a company is building out new coal projects or investing in renewables – before we break it down with more granularity,” said Jerosch-Herold. “We wanted to give investors an entry point into our product universe that’s simpler but isn’t the ending. Investors have the option to go deeper, to access data on individual assets.”
