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The solution: Measuring and managing financed emissions with Pathzero Navigator

Efforts to reduce global greenhouse gas emissions can only succeed with the full engagement of corporations and the financial institutions that fund them. Pathzero Navigator, an innovative software solution, was developed in response to this need.

 

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What is Pathzero Navigator? 

Pathzero Navigator is a tool that asset owners and managers use to measure, analyse and manage the financed emissions of their investment portfolios. 

It has been designed and built specifically to meet the needs of investors, no matter where they are on their climate journey.  

It is flexible enough to be used by investors who want an initial emissions estimate across their portfolios – requiring only a small number of financial data points – as well as those who have more granular emissions data directly from the portfolio. 

How does Pathzero Navigator work? 

Pathzero Navigator uses the Partnership for Carbon Accounting Financials (PCAF) methodology to calculate financed emissions.  

The PCAF Standard allows calculations to be made at varying levels of data quality. A PCAF score of 5 or 4 denotes that sector and region-based factors have been used to estimate the emissions of a portfolio company. Whereas a PCAF score of 2 or 1 shows that actual reported emissions data has come from the portfolio company.  

This is important because Pathzero Navigator allows investors to calculate financed emissions at any PCAF score – meaning that it is possible to start with estimates if you are just beginning your climate journey, and progress to more accurate calculations over time.

Access an emissions snapshot 

With the correct investment data to hand, it is possible to generate a PCAF-aligned estimate of financed emissions across your portfolio in minutes, without having to contact portfolio companies. If you do have reported emissions data from some, or all parts of the portfolio, this can easily be inputted alongside the estimates to produce a more accurate calculation. 

Identify emission hotspots

The analysis function on Pathzero Navigator allows investors to analyse their financed emissions across a whole portfolio, by fund, or at the individual asset level. This can be done in absolute terms or using intensity metrics such as emissions per full-time employee and emissions per $ million invested.  

It is possible to view data by company, country, sector, emissions scope or emissions category – giving investors all the data they need to make informed stewardship and decarbonisation decisions.  

Investors can use the data to identify emissions ‘hotspots’ – parts of the portfolio that have high emissions or high emission intensity – and use the information to engage with portfolio companies on how to decarbonise. 

Collaboration through connection 

Pathzero Navigator connects seamlessly to Pathzero’s other platform, Pathzero Clarity. The platform can be used by any organisation to calculate organisational emissions across scopes 1,2 and 3 at the whole of business and individual location (e.g., office or facility) level.  

When Pathzero Clarity is used by portfolio companies, it automatically connects to an investor’s portfolio view in Pathzero Navigator. The secure connection between platforms means investors can ask for specific data points from their portfolio companies without the need for offline emails and spreadsheets.  

If you need more help, please contact us at support@pathzero.com