Frequently Asked Questions

Investing for the Future 

Climate Risk: Clouds on the Horizon – Decision makers are increasingly focused on climate change as an emerging and important risk category. Companies are subject to new policies, technologies, and shifts in energy supply and pricing impacting their operational budgets. Today decision makers have an eye toward forecasts based on these same metrics but using different climate scenarios.

Some are better prepared than others to handle the unique challenges each climate scenario presents. Investors are taking note — stock prices and portfolio returns are ultimately driven by risk and market expectations of future earnings dependent upon the scenario outcome. 

For investors concerned with climate change risk, the opportunity is to apply predictive analytics to climate scenarios to reduce risk, improve performance and have Total Impact.

SOLUTIONSTechnology
What is Entelligent technology?


Our  technology, patented in 2019, is a climate and financial data processing system estimating the effect of a changing  climate and  changing global energy production and consumption patterns  on public  equity  performance.  Entelligent  evaluates  a range of  scenarios  to provide investment strategy guidance on climate change risk.

Smart Climate® uses a 3-step process to derive our E-Score, a rating system that grades public companies according to their transition risk relative to a peer group.

Entelligent’s  Smart Climate®  technology is trusted by global leaders  in sustainable investment  including the United Nation Joint Staff Pension Fund, Societe Generale, FactSet and S-Network.

 

How does the  3-step  process  work?    


First,  Entelligent  evaluates  multiple  climate  scenarios  with  an integrated assessment model. The model  simulates energy transitions arising from a range of  policy, technology, demographic and economic  outlooks.

Second, for each  scenario,  Entelligent  generates   price  and profitability  forecasts for  every major  energy  source  (e.g. oil, coal, nuclear, renewables).

Third,  Entelligent  scores  companies  based on sensitivity of share-price (or total returns  with dividends reinvested) to historical and forecast energy prices  using machine learning algorithms. Companies with higher sensitivity to energy volatility  are rated as  higher risk by  the  E-Score.  

 

How does the  3-step  process  work?    


First,  Entelligent  evaluates  multiple  climate  scenarios  with  an integrated assessment model. The model  simulates energy transitions arising from a range of  policy, technology, demographic and economic  outlooks.

Second, for each  scenario,  Entelligent  generates   price  and profitability  forecasts for  every major  energy  source  (e.g. oil, coal, nuclear, renewables).

Third,  Entelligent  scores  companies  based on sensitivity of share-price (or total returns  with dividends reinvested) to historical and forecast energy prices  using machine learning algorithms. Companies with higher sensitivity to energy volatility  are rated as  higher risk by  the  E-Score.  

 

How does the  3-step  process  work?    


First,  Entelligent  evaluates  multiple  climate  scenarios  with  an integrated assessment model. The model  simulates energy transitions arising from a range of  policy, technology, demographic and economic  outlooks.

Second, for each  scenario,  Entelligent  generates   price  and profitability  forecasts for  every major  energy  source  (e.g. oil, coal, nuclear, renewables).

Third,  Entelligent  scores  companies  based on sensitivity of share-price (or total returns  with dividends reinvested) to historical and forecast energy prices  using machine learning algorithms. Companies with higher sensitivity to energy volatility  are rated as  higher risk by  the  E-Score.