Investors

Value your portfolio companies’ contribution to global decarbonisation

Climate Dividends are the best tool to make sure that you’re investing into the solutions that contribute the most to global decarbonisation.

Assess your portfolio's climate performanceDiscover our users
Ademe
Mirova
Eurazeo
Serena
daphni
Team For The Planet
Demeter
ADEME Investissement
Via ID
2050
NCI
Asterion
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There is a critical need to link climate performance with investment returns

As of now, the return on investment of sustainable investors funding climate solutions is not correlated to their investees’ positive impact. Why?

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↳ Because sustainability is still not a direct component of financial valuations. Why?

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↳ Because there was no standardized way to measure the positive impact of a business (i.e its ability to remove or avoid emissions)

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That's a fundamental obstacle to shift traditional investments towards responsible investments - we need financial incentives!

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As the most robust and standardized measure of companies’ contribution to global decarbonisation, Climate Dividends provide sustainable investors the missing information to build the financial use case for avoided emissions.

How Climate Dividends work?

A simple 4-step process with continuous support from the Climate Dividends team.

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Embark your investees

Onboard your portfolio companies in the initiative (by including it in your shareholder engagement policy or requiring it for ESG reporting) and complete the process with or for them. You can support them by:

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  • Helping them through process - data collection, calculations, formalisation. Some funds actually commit to fill the claim for their investees to make it smoother and to bring value to them.
  • Paying for the process - as part of your reporting obligations and commitments to your LPs the fees (audit fees and Climate Dividends fees) can be paid with fund money (vs management fees)
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Receive Climate Dividends

After registering the claim of the company into the public registry, we will distribute the total volume of Climate Dividends issued to shareholders, following a similar allocation as the one used in the PCAF standard (Part A - Financed Emissions).

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You will therefore receive a distribution certificate, indicating the total amount of Climate Dividends received for your investment, reflecting the contribution to global decarbonisation of your equity stake.

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Reporting, communication and redistribution to LPs

Climate Dividends can be included in your general and impact reporting and it is complementary to other responsible investing frameworks: Article 8 fund, Article 9 fund, PCAF standards…

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  • Use Climate Dividends to transparently and robustly prove the avoided emissions or removed CO2e by your portfolio companies
  • Use Climate Dividends to report to LPs or even re-distribute the Climate Dividends you received to them (just like financial dividends!)  

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We provide guidelines and communication kits to ensure responsible and efficient communication.

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Financial use case

As the most robust and standardized measure of a company’s avoided emissions and removed emissions, Climate Dividends can be leveraged in various financial mechanisms for you and your investees. 

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  • Validate environmental targets hitting:
    • For your portfolio companies - extra-financial business plan, ESG-linked ratchets, management compensation
    • For you - ESG-linked carried interest, Article 8 or Article 9 targets
  • Improve portfolio companies' access to capital: 
    • Debt financing - access to debt with better interest rates (sustainability-linked loans, green bonds), lower banking fees
    • Equity financing - easier access to future equity rounds, smoother environmental due diligence, compatibility with ESG labels

Why use Climate Dividends?

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Serene communication

Communicate and report your positive contribution to global decarbonisation to external and internal stakeholders without the risk of being accused of greenwashing and strengthen your brand image

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Methodological support

Our experienced team supports you through the removed or avoided emissions assessment and we provide dedicated resources and tools - sectoral methodologies, use cases, Excel templates…

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ESG targets hitting

A neutral, robust and transparent metric to assess whether you (or your portfolio companies) have hit your avoided emissions targets. Use Climate Dividends as a trigger for ESG-related clauses (ESG-linked carried interest, sustainability linked-ratchets...)

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LPs engagement

Provide your LPs with a clear and actionable sustainability metric that highlights the environmental performance of your investments and demonstrates the impact of your sustainable investing strategy in climate solutions.

How to include climate performance in the financial valuation?

Climate Dividends were invented to complete current climate metrics, leverage avoided emissions from a financial perspective, and truly integrate climate performance into the funding rationale. Their ultimate goal is to value climate solutions and steer investment towards them, using standardized and audited data.

Discover how this is done, through innovative and concrete performance ratios, best practices, and concrete case studies, in this unique white paper.

Click on the button to download it!

Download

They already joined the initiative

More than 100 investors from all over the world are already receiving and using Climate Dividends. Climate Dividends can be used all along the investment process - early-stage VC, growth equity, infrastructure funds and project finance, asset managers.

Pilot Phase

"As an asset manager committed to safeguarding planetary boundaries, Eurazeo has partnered with Climate Dividends to foster a reliable, standardized measurement of its portfolio companies’ avoided emissions and encourage investors to channel their capital toward climate solutions."

Pilot Phase

"Startups raising funds from Climate tech investors must demonstrate real, measurable impact to gain credibility. Climate Dividends ensures their avoided emissions claims are backed by robust data, helping them secure top investors."

Pilot Phase

"Climate Dividends provides a standardised and transparent indicator of companies' climate positive contributions, complementary to conventional carbon footprint measurements. It represents a pioneering approach to assess the climate impact of our investment portfolios."

Pilot Phase

"As public investors, we must rigorously demonstrate the positive contribution of our portfolio companies to global decarbonization. Climate Dividends rely on a transparent, rigorous methodology shared by market players, enabling us to invest with confidence in the climate transition."

Pilot Phase

"Climate Dividends will help redirecting capital flows towards profitable and impactful solutions. Via ID is proud to be supporting the association and that our former portfolio company Fifteen is using the mechanism."

More use cases

Join the movement

Get in touch to support the Association or to start using Climate Dividends to value your portfolio companies' contribution to global decarbonisation!

Become a memberStart using Climate Dividends