In this relatively new discipline of corporate sustainability, POINT380 has been assisting leading companies and NGO’s with questions of how to qualify and quantify the issues and solutions of marketing, energy technology investing, and internal communications. Questions such as:
- How does a corporate sustainability team respond to questions from the C-suite, the Board of Directors, or the company’s stockholders?
- How can energy utility companies better target energy efficiency programs to their customers?
- How can a corporate sustainability team best interact with the rest of its company?
- How can we more easily calculate a company’s science-based emissions targets?
- How can a company better affect it’s supply chain’s GHG emissions targets?
- How can investment firms rate a company’s GHG emissions reduction performance?
Here are some highlights of our work in this area
Portfolio Rate of Change (P-ROC) – A Science-based Target Calculation Method
Science-based GHG emissions targets (SBTs) link climate science with the commitments made by the corporate sector to reduce emissions. SBTs can provide a clear standard for a company’s environmental performance and objectives. POINT380 developed the Portfolio Rate of Change methodology to promote the mass adoption of SBTs by providing a straight forward way to set and track these targets. The P-ROC methodology is a simple, scientifically valid SBT methodology applicable to individual companies, conglomerates, as well as groups of companies in any industry and at any stage. The enabled us to develop supply chain SBTs as well as the Climate Point Ratio described below.
Science-Based Targets for your Supply Chain
Innovative companies are looking beyond their own emissions consumption and seeking reduce the emissions from their total value chain. We worked with HPE to develop the first supply chain SBT program. This analysis began by calculating HPE’s portion of each supplier’s emissions. We then calculated the science-based targets and forecasted where we expect the total supply chain would end up based on current or proposed targets. Since we established this methodology we have applied it to other companies in the information technology and retail sector.
Climate Point Ratio™ (CPR) – Sustainability Metrics for Investors
There are currently no measurable ways to assess a company’s environmental performance. This poses an issue for investors looking to create portfolios that achieve environmental goals as well as financial returns. POINT380 developed the Climate Point Ratio™ (CPR) to create a quantitative benchmark to assess a company’s annual emissions performance relative to a science-based emissions trajectory. The CPR of all companies in an investment portfolio in each year are weighted based on their percent of portfolio value, then aggregated to compute the portfolio-level CPR. A CPR < 1 indicates the portfolio outperforms relative to a science-based emissions trajectory. Conversely, a CPR > 1 indicates underperformance.
Business Case and Publications
POINT380 has provided the analytics for, or authored part of, these reports and books:
- Reinventing Fire, Rocky Mountain Institute
- The 3% Solution: Driving Profits Through Carbon Reductions, World Wildlife Fund
- The Climate Has Changed, We Mean Business
- Seizing the Global Opportunity, The New Climate Economy
- Green Giants, Freya Williams