Genzero Launches Climate Impact Measurement Framework in Collaboration with Boston Consulting Group

• The GenZero Climate Impact Measurement Framework aims to provide a common methodology for investors to effectively measure the climate impact of decarbonisation investments globally

 

SINGAPORE – June 7, 2023 – GenZero, a Temasek-owned investment platform company dedicated to accelerating decarbonisation globally, has launched its Climate Impact Measurement Framework (the Framework) in collaboration with Boston Consulting Group (BCG), introducing robust methodologies for effective and holistic measurement of the positive climate impact of investments in decarbonisation solutions.

With the Intergovernmental Panel on Climate Change predicting in its latest report that global warming is likely to reach 1.5°C between 2030 and 2035, the need to decarbonise economies and industries has become more urgent than ever. While this presents an opportunity for meaningful climate action, the nascent and diverse approaches that have been developed to measure progress present a formidable challenge. More than half of 500 global business leaders surveyed by Economist Impact identified the lack of measurement standards and tools as a roadblock to achieving decarbonisation goals. For private capital investors funding climate action globally, the necessity to embed climate impact measurement into their investment process is fast increasing, but common frameworks are lacking.

The GenZero Climate Impact Measurement Framework was developed to tackle this challenge. Tailored for climate-focused private investments, the Framework is designed to be simple to use, easy to explain, and adaptable to evolving market norms, which provides investors like GenZero with a robust and practical methodology to start measuring their climate impact and potentially setting relevant targets. The Framework can help investors be more consistent and comparable in their methodology and measurement.

Grounded in industry best practices and advised by BCG, the Framework adopts the following four aspects of climate impact measurement to provide guidance to investors seeking to ascertain the impact of investments made:

1. Type of climate impact: Determining whether solutions and investments contribute direct, indirect, and/or transformational climate impact;
2. Share of climate impact: Determining the climate impact attribution in terms of ownership share and/or investees’ contribution across the value chain;
3. Timeframe for climate impact: Determining when the climate impact occurs and is measured; and
4. Balancing different considerations: Assessing the interplay between the quality, quantity and cost of climate impact over time.

Frederick Teo, Chief Executive Officer, GenZero, said: “To properly assess the impact of our climate action and investments, we need a shared understanding and consensus on how we measure, track and report decarbonisation. Investors are taking net zero targets seriously and they must be equipped with the right tools as well as quality industry data to assess the impact of their investments. With the development of the GenZero Climate Impact Measurement Framework, we hope to contribute towards an industry consensus on more holistic and robust climate impact measurement. This can help us and others make better investment decisions that maximise our climate impact while ensuring sustainable financial returns.”

Daniel Oehling, Partner, BCG, added: “It is becoming increasingly important to measure the actual climate impact delivered by climate-positive investments. The GenZero Climate Impact Measurement Framework is an important milestone that will accelerate the global conversation and convergence on climate impact measurement, providing a practical framework that investors can apply on their journey to responsible investing.”

For the full report, please visit BCG’s and GenZero’s websites at:

• https://www.bcg.com/publications/2023/measuring-and-maximizing-climate-impact-investment
• https://genzero.co/climate-impact-measurement-framework

Framework presentation at GenZero Climate Summit
GenZero will be convening its inaugural GenZero Climate Summit today and tomorrow (7-8 June 2023), as part of Temasek’s Ecosperity Week 2023 in Singapore. To accompany the launch of the Framework, GenZero’s Investment Strategy & Business Development Director Ashley Chan, together with BCG’s Partner and Director Dr Greg Fischer, will present the design of the Framework and facilitate a question-and-answer session with the audience as part of the summit’s agenda.

To find out more about the GenZero Climate Summit, please visit: https://genzero.co/climatesummit2023/

About GenZero
GenZero is an investment platform company focused on accelerating decarbonisation globally. Founded by Temasek, we seek to deliver positive climate impact alongside long-term sustainable financial returns by investing in opportunities with the potential to be nurtured into impactful and scalable solutions.

Driven by a common purpose to decarbonise for future generations, we recognise the need for a holistic and integrated approach to achieve a net zero world. At GenZero, we adopt a flexible investment approach across three focus areas to drive climate impact: (i) nature-based solutions that help protect and restore our natural ecosystems while benefiting local communities and biodiversity; (ii) technology-based solutions that deliver deep decarbonisation impact; and (iii) carbon ecosystem enablers which refer to companies and solutions that support the development of an effective, efficient, and credible carbon ecosystem.

For more information on GenZero, visit https://genzero.co/.

About Boston Consulting Group
Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders—empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact.

Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place.

For more information on BCG, visit https://www.bcg.com/