Environment & strategy
Succeed the environmental transition

Financial actors

At I Care & Consult, we do not believe that the financial sphere is a kind of “neutral veil” in the type of economic development we are shaping. On the contrary, it plays a crucial role in its sustainability. The experience of the recent major financial crisis has confirmed it, if need be.

This is why we are convinced that its different categories of actors (institutional investors, pension funds, insurance companies, asset managers, banks …) have a responsibility to enforce concrete solutions to all the environmental changes, in particular those that will impact their business models.

As a financial player, whether you are an investor or a financier, you are confronted with the question of your impact: the impact of your financial activities on environmental issues and the impact of environmental issues on your Financial activities.

I Care & Consult has built its expertise for the past eight years around this “impact” concept, its measurement and its strategic and operational consequences for companies and public authorities.

The success of this development and its critical mass of expertise (about thirty engineers) now allows it to significantly strengthen itself in providing advice to its clients in the financial world. The objective is to provide them with all the metrics and methodologies that make it possible to evaluate and manage the consequences of their financial activities to the environment or, conversely, to find with them the tools that allow to decline and optimize the financial consequences of their environmental objectives.

This offer is available on three types of interventions:

  • R & D finance and environment;
  • Assessment of environmental impacts;
  • Definition of investment strategy focused on the integration of risks / opportunities related to the environment.

R&D finance and environment

These research and development programs aim to define specific methodologies and tools for assessing and managing the environmental impacts of an allocation of financial assets and each of its components. Conversely, it is also a question of defining the metrics that optimize the risk-return couple of one or more portfolios under constraints of environmental objectives. The evaluation of performance and the risk of “green assests” (green bonds for example), is also, among others, a research theme.

References
Construction of a methodology define and calculate the Contribution to the environmental transition of enterprises for all sectors of the economy.
Definition of scenarios for integrating risks linked to climate change

Assessment of environmental impacts

The measurement of impact is an essential step : the carbon footprint of financial assets using the usual methods of induced emissions (scope 1/2/3) is the best known. Other environmental risks (water, air, biodiversity) should not be forgotten. Next, tools should be available to aggregate and process the available, often heterogeneous, data for enterprises and states. From this point on, it becomes possible to define metrics for contributing to the ecological and energy transition (green share and avoided emissions) and to assess the share of financial asset portfolios exposed to the major risks of environmental transition and assessment of impacts of these risks. All these impact measures must be part of the increasingly stringent regulations (Article 173-VI at national level, recommendations being defined at the G20 level).

References
FIR Book on Article 173-VI
Risk assessment and climate opportunities for equity portfolios

Definition of investment strategies focused on the integration of risks / opportunities related to the environment

Once the diagnosis is made, it is a matter of accompanying investors in the definition of a new allocation strategy and the structuring of the asset portfolios that implement it. Naturally, these developments must be part of the policy of Responsible Investment defined by the owner of the assets. It is also in the long term to enable it to evaluate the conformity of the expected impacts with those desired, in particular the implementation of consolidated reporting instruments.

References
Climate strategy definition
Biodiversity strategy
Managers' training at the price of the environment
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