Sustainability data and analytics company Clarity AI announced the launch of Transition Credibility Assessment, a new solution aimed at enabling investors evaluate whether companies are making progress towards their climate goals.
According to Clarity AI, the new solution comes as corporate climate targets are widespread, but evidence of delivery remains uneven, even as investors put a greater emphasis on implementation, creating pressure to distinguish between companies delivering on their climate commitments and those that are falling short.
Alice Borgonovo, Senior Product Manager, Responsible for Clarity AI’s Climate Solutions, said:
“There is no shortage of climate targets. What investors need to understand is whether companies are taking the steps needed to meet them.”
The new solution evaluates a series of dimensions of corporate climate transition, including emissions performance, low-carbon technology deployment, emissions disclosure, ambition and targets, decarbonization strategy, green capital expenditure, and governance, with ratings traceable to their supporting evidence, and distinguishing between the quality of a company’s reporting and its actual performance.
Clarity AI added that its solution applies detailed criteria to high-impact sectors and a simplified approach calibrated to sub-industry for other companies, and utilizes a methodology drawing on sector-specific net zero pathways and established frameworks, including the Transition Plan Taskforce Disclosure Recommendations and the Climate Action 100+ Net Zero Company Benchmark.
Borgonovo added:
“A credible plan shows up in the evidence: in emissions, in investments and in the technologies a company deploys. We built the assessment to examine that evidence, sector by sector, and show investors exactly where it comes from.”
