Innovative Data Solution Brings Powerful Climate Risk Measurement Capability to Portfolio Managers Positioning for Net Zero Future
January 25, 2023 | Boulder, Colorado—Entelligent, an independent climate data and analytics provider, and FactSet, a global financial digital platform and enterprise solutions provider, today announced the launch of Entelligent’s patented climate transition risk data, known as T-Risk, on FactSet’s digital platform.
T-Risk is a directional score that estimates the return spread for a given equity in a business as usual (BAU) scenario versus a Paris Accord-aligned scenario (temperature increases < 2.0 degrees Celsius above pre-Industrial levels). The model, which also includes a range of other scenarios being applied by regulators, is well-suited for identification of securities or construction of portfolios likely to generate greater returns in a low-carbon future.
Live access on FactSet, including in the Portfolio Analysis solution and the Programmatic Research environment, puts Entelligent’s T-Risk data at the fingertips of thousands of institutional investment professionals who rely on FactSet daily to manage trillions of dollars in assets. FactSet’s digital platform is ideally suited to leverage the forward-looking T-Risk score, which enables users to measure the relative climate-transition readiness of companies and securities for portfolio construction, attribution, and analysis.
“Entelligent offers a proprietary, science-based methodology for positioning companies under various climate transition scenarios, speaking to a need we see in our market,” said Ali van Nes, Senior Vice President and Head of Special Projects at FactSet. “This unique dataset allows asset owners and asset managers to address climate issues in their investment strategies and is a natural complement to the broad ESG data and robust portfolio analytics already available on our platform.”
Unlike most climate data providers, which help investors apply broad-brush decarbonization strategies via divestment, Entelligent’s approach facilitates diversification, a key pillar of risk management. Critical use cases include identifying opportunities that deliver higher risk-adjusted return compared to similar companies / portfolios; limiting exposure to companies that have a weak ability to pay a future price on carbon; generating standardized reporting on all of the above via FactSet Universal Screening, Portfolio Analysis and Alpha Testing; and more.
“We’re excited to put our data and methodology at the disposal of a global investment community that’s hungry for relevant, useful insight about the impact of the climate transition on their holdings,” said Entelligent CEO and cofounder Thomas H. Stoner, Jr. “We can’t think of a better platform than FactSet to bring Entelligent’s model to the world’s capital allocators.”
T-Risk, a solution within Entelligent’s patented Smart Climate® suite, covers more than 35,000 equities globally, with over 13 years of data. T-Risk’s dataset includes deep supporting metrics that enable granular analysis of energy-price sensitivities.
Entelligent was awarded a U.S. patent in 2019 for a system and methodology that uses climate and energy scenarios to simulate individual energy sources’ impact on securities, and in turn to generate profitability and investment return data.
Founded by Thomas H. Stoner, Jr., a clean-tech entrepreneur, and by David Schimel, Nobel laureate and NASA scientist, Entelligent is a pure-play, climate-data analytics platform with a patented approach to measuring climate risk. Entelligent offers a powerful market-based solution to mitigate climate change by focusing capital on companies that are actively managing the turn to a low-carbon economy. Our technology improves financial returns while illuminating the rate of reduction of global emissions required in future climate and economic scenarios. Learn more at www.Entelligent.com.
FactSet (NYSE:FDS | NASDAQ:FDS) helps the financial community to see more, think bigger, and work better. Our digital platform and enterprise solutions deliver financial data, analytics, and open technology to over 7,000 global clients, including over 180,000 individual users. Clients across the buy-side and sell-side as well as wealth managers, private equity firms and corporations achieve more every day with our comprehensive and connected content, flexible next-generation workflow solutions, and client-centric specialized support. As a member of the S&P500, we are committed to sustainable growth and have repeatedly scored 100 on the Human Rights Campaign® Corporate Equality Index and been recognized amongst the Best Places to Work in 2023 by Glassdoor as a Glassdoor Employees’ Choice Award winner. Learn more at www.factset.com and follow us on Twitter and LinkedIn.
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