Innovate UK, the UK’s national innovation agency, is funding innovative solutions that integrate climate and environmental factors into financial services through its SBRI – Climate and Environmental Risk Analytics for Resilient Finance competition. CGFI is supporting Innovate UK and successful applicants to deliver the next generation of green finance analytics through expert advice and connecting applicants with potential users to shape the development of these innovative solutions early on.
The projects below are funded in the first phase of the competition under the Climate Outcomes theme.
Detailed Scope 3 Analytics for Unlisted Assets
Our market opportunity is to create a platform to provide detailed carbon analytics, including scope 3 for unlisted equities and SMEs. Our project creates a due dilligence product, that will provide detailed and accurate scope 3 assessments for unlisted assets for use in commercial appraisals, monitoring of supply chains and to conduct sustainability due dilligence. We will achieve this by combining data consolidation and data in-filling techniques, with Scope 3 estimation approaches employed for listed equities. As a result our project will demonstrate how we can link the detailed datasets for unlisted equities and SMEs with robust estimation and validation techniques to fill the critical gap in carbon intensity data.
Stratiphy Sustainability Platform
We are developing an end-to-end climate checkout. This consists of an API for businesses to specify portfolios of securities (stocks, bonds etc..), to receive an aggregated carbon emissions attribution for the portfolio, to receive an executable market price for fractional offsets and fixed against market risk exposure, to receive information about carbon credit project quality based on our AI-led monitoring, and to be able to offset emissions in the carbon credit market directly.
Zumo Enterprise is the intelligent, embedded crypto solution fully regulated in the UK. It allows fintech and financial institutions to effortlessly embed crypto in their existing infrastructure, and meet the demands of modern customers.
Our innovative Renewable Crypto project will encourage global adoption and the decarbonising the crypto industry at large.
The Insurance-Debt Nexus: How risk policy keeps renewable energy bankable
This project will investigate and deploy an innovative insurance solution that supports delivery of the UK’s climate objectives. A recent narrowness of ‘insurability’ with less cover for new projects is leading in turn to a reduction in ‘bankability’ which reduces ‘investability’ since the equity internal rate of return (IRR) is less leveraged by debt. This is not about the cost of insurance, it’s about the cost of capital. The project’s focus of innovation is in applying a hybrid discretionary mutual to emerging risks in renewable energy, with benign intervention from an entrepreneurial State. We call this ‘The Insurance-Debt Nexus’.
An outcomes-based instrument for investing in Nature-based Solutions.
TreesAI is developing a financial instrument to channel capital (from public and private sources) in urban Nature-based Solutions (uNbS), establishing nature as an investable infrastructure asset class. TreesAI aims to fund portfolios of urban Nature-based Solutions that are aggregated and analysed via the TreesAI platform, a cloud-based platform integrating impact and financial modelling to calculate the ecosystem services delivered by Nature-based Solutions and assess the potential to mitigate climate-related transition and physical risks. We are developing our first pilot with the city of Glasgow.