Solutions

Regardless of a company’s unique business challenges or existing ESG and sustainability programs, our research-based offering helps organizations develop and execute a realistic, strategic roadmap to achieve their ESG goals.

Net Zero Analytics consulting reflects our expertise across public affairs, investor relations, shareholder activism and corporate communications. We see how ESG and sustainability public policies shape business strategy and know how to align corporate priorities with communications initiatives.

Our approach relies on the belief that companies should focus on developing a strategic framework that integrates ESG with business strategy for the long-term benefit of shareholders and stakeholders. Improved ESG ratings matter, but are an outcome of our work, not the focus.

Net Zero Analytics protects shareholder value by designing and delivering integrated sustainability strategies that improve performance, manage risk, and enhance market position.

Net Zero 's consulting services can help you:

• Obtain certified sustainability reports
• Achieve net-zero emissions
• Build business value from sustainability
• Reduce risks and optimize your environmental footprint
• Address unique environmental performance needs

Raising ESG Awareness

We guide you through the steps needed to establish appropriate management frameworks for environmental and human rights risks (also referred to as environmental, social, and governance (ESG) criteria):

• Develop  policies and processes aligned with your goals, your risk appetite, and the relevant regulations
• Understand ESG issues and how they might affect you
• Be prepared for internal and external discussions and decision-making

Corporate ESG Assessments

Investing responsibly, or considering environmental, social and corporate governance (ESG) criteria in the credit underwriting process, can generate long-term competitive financial returns and positive societal impact.

All the latest regulations place a significant emphasis on embedding ESG risks in the credit underwriting process. Responsible investment should also consider the impacts of megatrends (e.g. climate change), and emerging regulations or voluntary guidelines, as well as the requirements of wider stakeholders for transparency.

How can we add value to your business decisions?

Net Zero Analytics has extensive experience with assessing and managing ESG risks, and can help you structure and improve your own Due Diligence processes, or conduct a Due Diligence to uncover social, ethical, environmental and safety risks associated with a specific acquisition, or investment. Understanding the risks can help assess the costs and attribute value related to the investment.

We prepare ESG assessments to help financial institutions understand environmental and human rights issues, for example when financing companies in sensitive sectors.

ESG assessments are for:

Borrowers - Our ESG assessment takes into account the activity, fixed assets, supply chain, etc. The ESG assessment and rating is valid for a certain period of time (we recommend 1 year). No matter how many times the relationship manager submits a proposal to the credit committee, it uses the same ESG assessment as long as it is valid (unless the credit committee has requested an update).

A project or large investment - Regardless of the borrower ESG assessment, an ESG assessment is issued for the specific project taking into account the business plan, blueprints, licenses, etc. The ESG assessment is
updated at regular intervals according to the instructions of the bank, until the completion of the project when also a final rating is given.

You get tangible outcomes. These include:

• Provide an overview of the risks and hidden factors of your customer or investment
• Summarize deficiencies in compliance with laws and regulations and customer demands
• Help you better plan the integration of ESG criteria in the general due diligence process
• Prioritize expected cost related to improvement areas
• Methodology founded on a structured and robust methodology for documenting ESG Due Diligence and risk assessment
• Rely on necessary local expertise to ensure rapid and correct information

Green Bond Assessments

Green Bond Assessments are not credit ratings and they apply to bond issues rather than to the bond issuers. We have our own methodology for assessing green bonds, which are fixed-income securities, both taxable and tax exempt, that raise capital for use in financing or refinancing projects and or activities with specific climate or environmental sustainability purposes.

The Green Bonds Assessment provides an evaluation of the bond issuer’s management, administration, allocation of proceeds to and reporting on environmental projects financed with the proceeds derived from green bond offerings.

Our assessment process will score each bond issue on various factors, weighted to reflect their relative importance, to arrive at a composite grade. The composite grade, in turn, will inform an overall assessment that runs from AAA (low risk) to C (high risk).

After a Green Bond Assessment is initially assigned, it may be refreshed periodically, based on information provided in the issuer’s subsequently issued periodic reports.

As ESG criteria become increasingly important denominators among the investment community, specific metrics for measuring ESG performance are coming to the fore. But with such a broad range of issues falling under the ESG remit, investors should be considering a wider set of metrics, many of which are much harder to quantify.

With so much value being placed on sustainable investing, investors need accurate ways to  measure ESG performance, and  identify ESG risks  to inform the investment process. By doing so, they hope to identify companies likely to see good financial performance in the long-term due to their ESG-focused business models. Because impact investing gets results. Which is why investors need to identify the best ESG performers when constructing their investment strategy.

One route is through the voluntary GRI Sustainability Reporting Standards, established in 2016 by the Global Reporting Initiative  to support best practice in impact disclosure. Covering topics from tax to emissions, anticorruption, biodiversity and occupational health and safety, they aim to offer a flexible framework for creating integrated ESG reports.

At Net Zero Analytics we produce various sets of metrics for the benchmarking of sustainable business performance. The metrics are centred on four pillars, encompassing a number of ESG factors:

• People: Diversity reporting, wage gaps, and health and safety.
• Planet: Greenhouse gas emissions, land protection, and water use.
• Prosperity: Employment and wealth generation, taxes paid, and research and development expenses.
• Principles of governance: Purpose, strategy, and accountability informing risk and ethical behaviour.