Solactive expands its engagement in ESG data providers by placing strategic investment into German start-up right.based on science
- 17.02.2020 10:53 am
Solactive concluded its strategic investment in scientific climate data start-up right. based on science. The Frankfurt-based company’s software enables clients to measure the contribution of a company or a portfolio to climate change. Backed by the peer-reviewed XDC Economic Climate Impact Model, results are expressed tangibly and easy to interpret in °C. The software features scenario analysis and a variety of use cases ranging from portfolio and product design to climate reporting and risk management.
right. based on science’s XDC (X-Degree Compatibility), which allows the start-up to measure a company’s individual contribution to global warming, pushes an open door in the current market and regulatory environment. As policymakers incite investors to reallocate their portfolios to meet the criteria of the Paris Agreement and the Bank of England recently announcing the undertaking of climate stress tests for UK lenders and insurers, the XDC Economic Climate Impact Model, which will be open-source by 2021, of right. based on science has its green thumb right at the pulse of time.
“A coherent and stress-tested model to precisely compute a company’s ecological footprint is a precious asset and of significant importance for our society,” says Steffen Scheuble, CEO at Solactive. “When we first heard of right. based on science, we were fascinated immediately by their model’s outstanding degree of sophistication and its simple and straightforward output. It is astounding to see the share of a company’s contribution to global warming in such a tangible and accurate manner.”
Solactive’s minority stake allows right. based on science to accelerate software development and expand its audience through Solactive’s ties within the financial industry while staying independent to provide objective and unbiased analyses for its clients and Solactive as the strategic partner in the indexing space.
The team headed by the two founders Hannah Helmke and Dr. Sebastian Müller, who established the start-up in 2016, shares Solactive’s vision of utilizing technology to give their clients a real added value. This mindset gains special importance in an age where capital markets are more and more subjected to investors’ conscious decisions in terms of their asset’s impact on climate change and their overall ESG strategy.
Hannah Helmke, CEO of right. based on science comments: right.’s mission is to increase transparency on climate-related risks and opportunities within the market so that capital can be steered in the right direction. With its minority stake, Solactive is a partner that has excited us through its incredible agility, the team’s fresh, entrepreneurial, and tech-focused mindset and its profound financial expertise. We believe that together we can take the XDC Model to the next level and make it a valuable instrument for everyone looking for an open-source standard for climate impact measurement.