Scope 4: Investors launch platform to standardise avoided emissions accounting

A group of investors and consultants have launched the Avoided Emissions Platform (AEP) to harmonise the way companies calculate Scope 4 emissions – those avoided by using their products.

The platform aims to standardise the assessment of climate solutions’ impact, by creating a more transparent calculation methodology, and is backed by 12 asset managers and owners representing more than US$4 trillion of assets under management.

The group, led by Robeco, Mirova, Edmond de Rothschild AM, I Care and Quantis, argue that the development of harmonised metrics to calculate Scope 4 emissions – those avoided outside the lifecycle of a product, thanks to the use of that product – is essential to channel capital towards the most effective climate solutions.

How the Avoided Emissions Platform works

The Avoided Emissions Platform (AEP) works as an interactive tool, modelling the avoided emission factors for 65 climate solutions, based on a transparent, open-access Scope 4 methodology.

The methodology was built on the recommendations of a scientific committee composed of representatives from the World Business Council for Sustainable Development (WBCSD), Climate Dividends, the University of Edinburgh, Rho Impact and Prime Coalition, to ensure consistency with existing guidance on avoided emissions. It can be accessed with a license and will be expanded with new solutions over time.

Manuel Coeslier, Lead Expert, Climate & Environment at Mirova, said: “The financial sector plays a key role in driving the economy towards net zero emissions globally. Clear and comprehensive information on companies' true contributions to this goal is essential, notably through the provision of climate solutions. We are confident the Avoided Emissions Platform will soon establish itself as a global market platform, thus enhancing ambition and transparency in measuring avoided emissions.”

AEP benefits

The platform’s backers say their goal is to promote transparency, collaboration, and informed decision-making and accelerate the transition to a sustainable and decarbonised economy. Companies can improve their credibility and access to capital by using AEP to report their avoided emissions.

Meanwhile for financial institutions, AEP aims to provide reliable metrics allowing them to align their portfolios with net zero objective. “This new database will help us credibly quantify their true contribution to climate mitigation. This addresses the high demand from our clients for more extensive impact measurement,” said Lucian Peppelenbos, Climate & Biodiversity Strategist at Robeco.

At the same time, the platform will provide insights to academics and regulatory bodies to inform sustainability research and policies.

Anne Désérable, Managing Director at Quantis, added: “To accelerate the environmental transition, we must not only reduce emissions but also scale up solutions that actively avoid them. This platform establishes robust and harmonized approaches to calculate avoided emissions, enabling both companies and financial institutions to assess climate contributions with greater clarity. It’s a critical step toward a more transparent and effective transition.”