Sweep Introduces Game-Changing Solution to Track Emissions Across Investment Portfolios for Financial Institutions

Published on: 26 September 2022
by KnowESG

Sweep, the leading carbon management platform, announced the launch of Sweep for Finance, the market's most advanced solution for financial institutions to acquire a complete, real-time view of investment emissions and collaborate with portfolio firms on decreasing their climate footprint.

Asset managers, private equity firms, and banks, for example, are struggling to effectively track the carbon footprint of their investments, as described by Greenhouse Gas Protocol Category 15. These indirect emissions can be 700 times higher than direct emissions.

Sweep's technological infrastructure was designed to allow the exchange of carbon data between organisations and foster collaboration across the life cycle. Sweep for Finance enables financial institutions to map all of their portfolio emissions and produce a reduction dynamic across all of their investees. This will not only help to streamline their decarbonisation efforts, but it will also allow investors to accelerate the economy's low-carbon transition.

Rachel Delacour, CEO of Sweep, said: 

“The finance industry can no longer afford to rely upon inaccurate estimates and assumptions. They need the right tools to accurately track emissions and inform their investment decisions and carbon reduction strategies. With access to reliable data, financial institutions will be able to confidently move towards their climate targets and report emissions following the latest reporting regulations and frameworks.”

Fast-changing climate disclosure standards, such as the Sustainable Finance Reporting Disclosure (SFDR) in Europe and the SEC proposed rules in the United States, are adding reputational and compliance challenges to the already complex task of managing financed emissions.

Sweep for Finance tackles these issues by performing industry-leading portfolio analysis under the Partnership for Carbon Accounting Financials (PCAF) standard. It provides complete and fully auditable reports that meet any national or industry reporting standards through CDP-based benchmarks, carbon assessments and secured data collaboration features.

Marie-Anne Vincent, Sweep’s VP of Climate Finance, said: 

“Whether dealing with potentially time-consuming emission reporting or navigating changing regulations, investors need to support their portfolio companies in the low carbon transition. Collaboration in carbon data will be key to tackling these challenges, ensuring companies and investors can work together to track and reduce emissions.”

Sweep's network approach to carbon management has helped several companies, like Coatue and 2050, an impact-focused VC fund, on their climate journey. It has been using its Connect function to acquire a granular view of the emissions emitted directly by its portfolio companies, identify emission 'hotspots,' and take steps to reduce their collective footprint.

Marie Ekeland, founder of 2050, said: 

“Companies aligning their business interests with those of society and the planet will be the champions of tomorrow’s economy. Sweep is a solution-oriented company that is greatly helping companies to accelerate the sustainable transformation of the economy.”

Sweep currently works in a wide range of industries, from consumer goods to manufacturing, and its new Sweep for Finance platform is expanding its customer base to include private equity firms, banks, and investors.

Sweep continues to grow and customise its carbon management platform features to key greenhouse gas emissions-emitting industries after raising $100 million within 12 months of becoming public. Verdantix, an independent research agency, named the company among the top three vendors for carbon finance management in the Carbon Management Software Green Quadrant 2022.

Source: Business Wire

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