Full-Cycle Financed Emissions Management
Our platform combines ease-of-use with extensive data sets and powerful tools to help you understand and manage your portfolio emissions through the full cycle.
Full-Cycle Financed Emissions Management
Measure Emissions
Fast, accurate, multi-asset portfolio emissions calculations in minutes from minimal data input. The platform includes information on all public companies and millions of private firms, including data on reported emissions, financial statements, sector averages and more. There are pre-built calculation models for all PCAF asset classes, including bonds, loans, equities, real estate, private equity, etc.
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Attribute Changes
Quantify how your portfolio emissions changed because of what you did, what the companies you invested in did, or other market drivers. Our platform attributes emission changes to shifts in portfolio holdings, changes in the emissions of underlying companies, or changes in valuation and investment/fund size. Full drill down to sub-portfolios, industry sectors, and individual positions. Comparisons to index or benchmark funds, and resolution active/passive causes of emissions.
Rebalance Portfolio
Identify, on a holding-by-holding basis, what changes in holdings mean for your financed emissions. Zfolio provides you with workbooks to help understand where emissions come from currently and the future impact of portfolio decisions – e.g., what the impact of changing holdings, sector allocations or new investments might be on financed emissions this year and next year.
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Plan Transition
Understand what climate scenarios and pathways your investments are aligned with. Compare the trajectory of your portfolio emissions to an established scenario, for example, the IEA Net Zero by 2050, or any other scenario. This can be done on a sector-by-sector basis, and the results segmented by sub-portfolios, custom groupings or asset class.
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Set Targets
Set informed annual or interim targets with an understanding of what needs to change in your portfolio to meet your long-term targets. Transition planning can provide realistic and achievable targets at different levels of granularity. Emissions attribution can help you track your progress towards these portfolio and sector level targets, while isolating the effects of changes beyond your control.
Why Zfolio?
Industry standard calculations
The Zfolio calculation methods align with industry standards including PCAF, TCFD and SFDR, as well as the new requirements of the SEC, OSFI, and SB 253. We have sourced emission factors and financial data to enable those calculations - all you need to do is upload your portfolio. However, the standards provide some room for interpretation, and allow you to deviate from the recommended approach with appropriate disclosure. Our system is designed to facilitate that - including being able to calculate emission with different methodologies and different data sources at the same time, or change methodologies and compare the results.
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Truly multi-asset-class
Zfolio supports all major asset classes (public and private equity and debt, real estate, mortgages etc.). Each asset class is fully supported across our system, from underlying emissions factors to analysis. We have reported emissions and financial data for the full range of global listed companies, as well as data on millions of private companies, and factors for real estate and vehicle loan emissions. All our calculations work seamlessly across the different asset classes - this includes emission calculations, emissions attribution and emissions modelling. Emissions attribution and modelling can be performed on portfolios containing multiple asset classes, and the results can be aggregated seamlessly.
Full visibility
The system provides full visibility into the emissions calculations - the source of the data and the calculations done for every holding. Portfolio totals can be broken down into multiple levels of sub-portfolio groupings and multiple levels of industry sectors. All methodologies are fully documented, while additional reporting can be provided to facilitate validation by third parties. Our team can help explain every number in the system - there is no need to accept ‘black box’ calculations.
Flexible implementation
Our technology provides extensive configuration and customisation options. You can decide where you source your emissions or financial data - we have a comprehensive data set available, or you can mix and match with data from other vendors if you prefer. The system has a library of emissions calculation methods, and you can choose which you would like to use for each asset class, or add your own. We are also flexible on how you implement our system. We have a complete cloud SaaS offering, but if you prefer to deploy on-premises, we can help you do that. Or, we can just provide code modules to integrate with your existing systems.
Leading emissions attribution
Zfolio has the most detailed and comprehensive portfolio emissions calculations in the industry, supporting attribution of financed emissions intensity and absolute emissions. Emissions attribution can be done over time (delta attribution) or against a benchmark, with emissions changes attributed to 5 possible influences. It is then easy to see how much of those changes were due to actions of the portfolio manager, changes to the emissions intensity of the companies or other factors. This is especially useful for understanding progress towards emissions reduction goals, and quantifying which emissions changes are transient or outside the control of management.
Emissions data warehouse
Zfolio has implemented a modern data warehouse architecture. This includes tools for loading data from external systems, such as spreadsheets, external relational databases, web services and xml data files. The database stores portfolio, emissions and financial data in an easily accessible star schema. Calculated results are also stored in the database, and can be exported to a file, displayed directly in a web browser or through an interactive dashboard. There is also a web services REST API.