We constructed a financed emissions baseline for BlueEarth Capital to provide insight into the emissions profile of its portfolio of investments
BlueEarth Capital (BlueEarth) is a specialist impact investor active across multiple industries in developing and emerging markets. BlueEarth asked Steward Redqueen to develop a greenhouse gas (GHG) emissions baseline of its portfolio of investments to inform its climate strategy. Using our proprietary GHG accounting methodology and tailor-made data collection templates, we developed a comprehensive picture of BlueEarth’s financed emissions across the whole portfolio (debt, private equity, funds).
The diversity of BlueEarth’s portfolio can pose challenges in GHG accounting. And in most cases, investees in emerging markets do not yet report on their emissions, leaving substantial data gaps. Our methodology allows financiers to overcome these data hurdles. While directly reported emissions are the preferred option, our methodology makes it possible to estimate emissions based on readily available portfolio-level financial information, in accordance with industry best practice (PCAF, GHG Protocol). Applying this to BlueEarth’s portfolio allowed us to construct accurate emissions profiles of BlueEarth’s investees across a variety of sectors and investment types, bridging data gaps.
The findings highlight the emissions exposure across sectors, countries, and investees, giving BlueEarth insights into the different emissions hotspots in its portfolio. Consequently, BlueEarth can use this to engage with its investees, and to target its mitigation efforts going forward.