Smart Climate® Data Solutions

Smart Climate® Data Solutions provides security level performance and risk data under multiple climate scenarios.

Smart Climate® Data Solutions: Data Subscription

Smart Climate® Data projects a security’s performance and risk under multiple climate pathways.

Our data uses climate scenario signals from a global climate model to determine climate risk exposures for individual securities. The Smart Climate® methodology predicts the total return on securities for up to two years, using multiple future climate scenarios, then computes the variance among these returns as a climate risk indicator.

Smart Climate® Data Key Features

The transition toward a low carbon economy suggests that corporations may face big shifts in asset values or higher costs of doing business than others. Smart Climate® Data Solutions equip investors with predictive tools to identify the risks and opportunities associated with plausible climate and energy transitions.

 

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Smart Climate® Data Solutions: E-Score™

 

Smart Climate® Data Solutions include subscription access to the proprietary Entelligent E-Score™ metric which are rankings using a proprietary formula that weight a business' general historical and projected financial strength, current and projected impact and regulatory costs, and risks of business operations considering environmental, economic, energy, social, and governance factors pertinent to the business.  E-Score™ metrics include:

EMTR Score: Energy Mix Transition Risk Scores are measures of climate risk exposure computed by applying a top-down approach using climate modeling and energy mapping driven down to the portfolio level and the individual securities within.

ADAPT Score: Measures a company’s ability to adapt to an extreme, high carbon environment. The ADAPT scores reward the companies that show lower-risks and superior performance in high carbon scenarios.

T-Risk Score: Measures a company’s transition risk in a low carbon environment. The T-Risk score rewards the companies that show superior performance and lower risks in transitioning to low carbon scenarios.

The Smart Climate E-Score can be computed for any publicly traded equity.

 

Back test results with E-Score integration show:

Emergence: The impact of climate change risk is more prominent in recent years (3-5 years) relative to earlier years.

Adaptation: Companies having lower exposure to climate change risk are at least 65% more likely to be investing in energy efficiency (and thus carbon cost reductions).

Outperformance: Use of the E-Score can statistically improve portfolio performance with a frequency greater than by chance.

 

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Smart Climate® Data Solutions: Score Carding

Entelligent’s Smart Climate® Score Carding ranks companies inside a portfolio or within their industrial sectors. When combined with specific financial indicators, Smart Climate® rankings have demonstrated a probabilistically significant increase on returns.

The Smart Climate® Score Card integrates the three E-Score scenarios and allows side-by-side comparison of how companies fare across all plausible future climate these scenarios. Smart Climate® Score Cards also include the Radar GINI, a combined score, which represents a company’s overall climate fitness.