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Partners in the Sustainable Edge project gathered at CICERO at the kick off for the project in August 2019. PHoto: CICERO

Partners in the Sustainable Edge project gathered at CICERO at the kick off for the project in August 2019. PHoto: CICERO

Sustainable Edge: climate risk assessment for companies

The Norwegian real estate company Entra is the first company in Norway to have its revenues, investments and governance structure assessed in shades of green or brown in line with the updated Shades of Green methodology. The methodology has been developed in the ‘Sustainable Edge’ project in cooperation with leading Norwegian financial institutions, CICERO Shades of Green and ENOVA (the Norwegian public energy enterprise). 

 Read the full company assessment here

The ‘Sustainable Edge’ project has developed a tool for investors and creditors to understand how well-aligned a company’s business activities are with the transition to a low carbon economy.

The transition to a low carbon and climate-resilient society requires financial flows to be channelled from 'brown' to 'green' investments. The project is led by CICERO Center for International Climate Research in partnership with its subsidiary CICERO Shades of Green and leading Norwegian financial institutions. It is financed by ENOVA, a Norwegian state enterprise established to promote environmentally friendly restructuring of energy use and production, as well as other partners who are actively participating in the project.

The analysis methodology that is developed is rooted in CICERO's climate science and build on CICERO’s acknowledged Shades of Green methodology for green bond framework assessment. The methodology is now further developed to offer company assessments.  

A company's revenues and investments are assessed on a scale from dark green to dark brown depending on how the activities contribute to a low carbon future.

 

In the report Missing the forest for the trees. A review of climate risk data providers as part of the Sustainable Edge project fra CICERO (2019) we briefly review possible approaches: environmental social and governance (ESG) information covering climate, specialized approaches to physical and transition risk and approaches combing aspects of climate risk and impact. We also present a discussion on how different sources can be used to understand climate risks. Read the report here. 

In the Sustainable Edge methodology report we describe the methodology that is developed to assess the greenness of companies. Read the report here

 A company assessment report in line with the CICERO Shades of Green methodology: 

  • provides transparency on how green a company's revenues and investments are
  • makes it possible to follow over time a company's share of green revenues and investments, providing information on the company's transition efforts and climate adaptation
  • gives assessment of risk management for physical climate risk and transition risk
  • gives assessment of the company's use of climate scenarios and alignment with the climate risk reporting recommendations from the Task Force on Climate-related Financial Disclosure (TCFD).
  • gives information on possible alignment to the EU taxonomy