Defining the problem

Huge Data Gaps and Quality Issues

There is a gap of at least $1.2 trillion annually needed to achieve Paris Climate Accord goals and prevent catastrophic disruption of the global economy and the natural world. There is no way to close that gap without large-scale reallocation of capital by financial institutions (pension and sovereign wealth funds, banks, insurance companies, and asset managers), corporations, individuals, and governments.

Most corporations are not acting quickly enough on their own in the absence of government regulation and incentives, carbon price signals, and market demand signals.

Therefore, it is crucial for institutional investors and banks to lead, by aligning their entire portfolios as quickly as possible with Paris Accord Goals, while pressing the companies they finance and invest in to do the same with their capex, R&D, product development, supply chain management, etc.

Data and existing tools’ coverage of asset classes beyond listed large-cap equities is poor, especially for countries outside the OECD. Even where coverage is good, quality, comparability, and trust are often poor.