The climateXcellence model was initially developed by The CO-Firm together with Allianz Global Investors, Allianz Climate Solutions and the WWF Germany in 2015. The new “bottom-up” model showed that the financial risks of climate change can be substantial for companies, based on the dairy and cement sectors. The model is unique, as it is far superior to traditional “top-down” evaluation models and carbon footprinting.
climateXcellence is an agile and expanding product based upon recognition by science and economy
The Beginning of a Successful Transition Model
Expansion of the model with recognized partners
Together with the Investment Leaders Group, and co-operating with the Cambridge Institute for Sustainability Leadership (CSIL), The CO-Firm extended the model to three other energy-intensive sectors and tested its applicability for various investment forms. The project focused on “electric utilities”, “oil refining” and “gas production”. The model evaluated the effects of climate change on the profitability of individual companies at national level and on CO2 and energy regulation. Thus, the results show significant differences between companies in the same industry and same geographical extension, especially when companies’ adaptability is taken into account. You can see the results in the “Feeling the Heat” report.
Expansion and validation on a wider scale
Currently, the model is validated for the systematic application of valuation of portfolios, for example, shares, loans and bonds, within the “Energy Transition Risk Project”. The project consortium, which is supported by the European Commission, consists of the following partners:
Feedback from distinguished organisations
The discussion of the transition risk model behind climateXcellence has already been taken up publically, among others, by the G20 Green Finance Study Group and the UNEP Finance Initiative.
Expansion in the real estate sector
The climateXcellence framework is supplemented by a stranding asset risk analysis for assessing the 2°C compatibility of property portfolios for the real estate sector. The CO-Firm developed this tool together with the German initiative of several companies “Energy Efficiency” and with partners such as Union Investment, Credit Suisse and other investment partners. You can test the Stranding Toolset on the The CO-Firm’s website.