Knowledge Base
Assess risks and opportunities related to climate and ESG factors within corporate social responsibility (CSR)
Which climate risk assessment methodology was developed by Carbone 4?
The OCARA methodology, developed by Carbone 4, structures climate risk assessment in six steps, from analysing past risk exposure to formalising conclusions in a report. This methodology is specific and widely recognised in the field.
What is the minimum ESG analysis rate required for a fund claiming a central ESG approach according to AMF Doctrine DOC-2020-03?
The ESG analysis rate must reach at least 90% of assets for a fund claiming a central ESG approach. This ensures that the majority of assets are evaluated according to ESG criteria, which is crucial for the fund's credibility.
What formula is used to calculate the carbon footprint according to the SFDR RTS?
The formula for calculating the carbon footprint is (GHG Emissions x Investment / Enterprise Value) / Total Portfolio Value, expressed in tonnes of CO2 equivalent per million euros invested. This formula enables the normalisation of emissions relative to portfolio size.
The EU Taxonomy requires that sustainable economic activities comply solely with the technical criteria detailed in the delegated acts.
The EU Taxonomy requires four cumulative criteria: substantial contribution to an environmental objective, no significant harm to other objectives, compliance with minimum social safeguards, and conformity with technical criteria. Compliance with technical criteria alone is insufficient.
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Items to categorize:
Cumulative criteria for a sustainable activity
Optional criteria for a sustainable activity
The EU Taxonomy requires that sustainable activities meet four criteria: substantial contribution to an environmental objective, do no significant harm (DNSH), compliance with minimum social safeguards, and conformity with technical criteria. Each criterion is distinct and necessary.
Mandatory PAI indicators under the SFDR RTS
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The 18 mandatory PAI indicators cover environmental and social dimensions, including GHG emissions (scopes 1, 2 and 3), carbon footprint, carbon intensity, exposure to fossil fuels, share of non-renewable energy and energy intensity. These indicators are essential for assessing principal adverse impacts.
Eligibility under the EU Taxonomy means that the activity is listed in the delegated acts.
Eligibility under the EU Taxonomy means that the activity is listed in the delegated acts. Alignment implies that the activity meets all the criteria. This distinction is crucial for understanding the compliance of economic activities.
According to the TCFD framework, what are the two fundamental types of climate risks to be assessed?
The TCFD framework distinguishes two fundamental categories of climate risks: physical risks (extreme events and gradual changes) and transition risks (policy, technology, market and reputational). This distinction is essential for a comprehensive assessment of climate impacts on a company.