Assessment
of your
investment
carbon
impact
A busy climate agenda
The IPCC scientific reports are unanimous on the importance of rapid action to limit global warming to no more than 1.5°C. To reach this objective by 2030, the main lever for action is to reduce greenhouse gas emissions and transition to a low-carbon economy.
For purpose of a sustainable approach to investment, we pay particular attention to the analysis of extra-financial risks, and to the carbon impact of our solutions.
Understanding the carbon impact
Climate risk is now predominant due to its probability and consequences. We want to contribute to a better understanding of these issues and are developing tools to understand the climate impact of investments through independent and unified information for all our products.
The SILEX
Carbon Score
To develop our SILEX Carbon Score, we have chosen to work in partnership with Carbon4 Finance. Our proprietary methodology allows for a uniform carbon rating for all our investment vehicles: the SILEX Carbon Score, rated A / B / C or D.
Concrete use
Our mission in sustainable investment is to assist our clients in: - measuring and understanding the impact of their investments - structuring an asset allocation strategy aligned with their sustainability criteria and contributing to solutions to major challenges - implementing this allocation strategy and measuring its financial and non-financial performance
. understanding
Our awareness of the climate emergency and its social implications requires us to provide rigorous information to our clients and investors. SILEX is committed to providing clear, reliable and standardized information on the impact of investments in order to ensure comparability of supports (structured products, portfolios and AMCs) and to participate in the acceleration of the diversion of financial flows towards the best sustainable alternatives.
Our analysis is mainly focused on the carbon impact of products, as it is a recognized scientific metric, benefiting from a consensual calculation methodology, allowing the integration of the transition criterion in portfolios.
Nowadays, ESG filters, applied alone, do not guarantee the sustainability of an investment or a portfolio because the normative framework is still under construction.
The measurement of the carbon impact of an economic entity benefits today from a consensual accounting protocol (GHG Protocol) and standardized indicators based on several reference climate scenarios (IPCC). Detailed carbon footprint data is available for most listed entities.
Measuring the carbon footprint of a product is a key information for investors, allowing them to understand the direct climate impact of the investment, to compare it and to act accordingly on its allocation.
Assessing and limiting the carbon impact of investments is both urgent and possible.
. the SILEX carbon Score
SILEX favors a quantitative approach to extra-financial data and relies on partners with historical expertise in carbon impact.
As part of the Silex Carbon Score, we work with data from Carbon4 Finance, a pioneer in carbon assessments and one of the few players measuring direct, indirect and avoided emissions (scope 1, 2, 3 & 4) of companies. The integration of avoided emissions allows us to integrate a vision of the transition of companies and their dynamics of change.
The SILEX Carbon Score links Carbon4 Finance’s carbon impact analysis data to its concrete use in investment portfolios, in the form of a readable grade on 4 levels: A / B / C or D.
This information can be made available for all our investment supports (structured products, funds and AMC) for which the data is available. The SILEX Carbon Score provides essential information for integrating sustainability criteria into investments, particularly for structured products: the score integrates the analysis of the support by including each characteristic: underlying, issuer, product terms.
. utilisation
Environmental (physical and transitional) and social risks must be integrated into modern allocation models because they are the major challenge facing our societies and condition the measurement of an investment’s sustainable performance.
We are now in a position to make the SILEX Carbon Score available to our partners with a view to informing them about the carbon impact and temperature trajectory of our products at investment level. Our tools allow us to accompany investors at all levels of ambition and integration of sustainability in investments, by integrating climate impact to the return / risk approach.
Where are you about carbon?
. issues and limits of our actions
The financial industry does not have a direct role in putting the energy transition into practice, but it does have a shared responsibility to identify where these impacts are occurring and what they are, in order to enable the positive orientation of investments.
Through these innovations, we aim to improve our support and inform our partners and clients about extra-financial risks and in particular the low-carbon transformation of companies.
The choice of carbon measurement is explained by the methodological and reliability limitations of other extra-financial data currently available. Our CSR Committee and quantitative analysts regularly evaluate new standards and innovations related to the reliability, standardization and verification of data, in order to develop our analysis tools and aim for continuous, innovative and differentiating progress.
The financial industry does not have a direct role in putting the energy transition into practice, but it does have a shared responsibility to identify where these impacts are occurring and what they are, in order to enable the positive orientation of investments.
Through these innovations, we aim to improve our support and inform our partners and clients about extra-financial risks and in particular the low-carbon transformation of companies.
The choice of carbon measurement is explained by the methodological and reliability limitations of other extra-financial data currently available. Our CSR Committee and quantitative analysts regularly evaluate new standards and innovations related to the reliability, standardization and verification of data, in order to develop our analysis tools and aim for continuous, innovative and differentiating progress.
. recent news
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