Sphera’s solution for investors and lenders seeks to enable financial institutions like Blackstone to measure financed emissions and deliver value by managing applicable climate-related investment risks and opportunities at scale. PwC and Sphera are working together to leverage this solution for financial institutions.
CHICAGO, June 20, 2023 /PRNewswire/ — Sphera, a leading global provider of environmental, social and governance (ESG) performance and risk management software, data and consulting services, today announced the launch of SpheraCloud Corporate Sustainability–Portfolio Management software solution, designed to help organizations reliably measure and manage their portfolio carbon footprint, assess climate-related risks and opportunities, integrate a climate strategy into their organization, as appropriate, and meet ESG reporting requirements.
The announcement comes as financial institutions are seeking to report financed emissions, which stem from daily financial service activity (i.e., through investments, loans and services). A financial institution’s financed emissions can be substantially higher than its direct emissions. Capturing and analyzing financed emissions becomes especially complex for financial entities that have a multitude of loans, investments and debt holdings.
The modular software on Sphera’s industry-leading software as a service (SaaS) platform allows financial institutions to accurately collect, calculate, report and manage financed emissions utilizing AI and advanced analytics. Notable features of SpheraCloud Corporate Sustainability–Portfolio Management include automated data collection, a robust calculation engine, integrated emissions factor libraries, portfolio performance management and audit-proof reporting. The software leverages deep industry knowledge and industry standards to attribute emissions to specific financial assets, enabling financial institutions to quickly assess the emissions footprint of their portfolio’s investment and lending activities, improve data quality and act towards their decarbonization strategy.
SpheraCloud Corporate Sustainability–Portfolio Management was developed for business leaders at financial institutions to accurately assess, calculate and report on their financed emissions using the Partnership for Carbon Accounting Financials (PCAF) and Greenhouse Gas (GHG) Protocol standards. This enables a standardized, robust methodology to measure financed emissions across a portfolio and allows financial institutions to report in a transparent and credible manner to investor and other stakeholder requests. Sphera worked with Blackstone to engage expertise in developing a solution that can prove valuable to the financial services industry and its investors.
“Enabling companies to set science-based targets and accurately measure and report on their carbon footprint is critical to our mission of creating a safer, more sustainable and productive world. To support the transition towards a more sustainable economy, financial institutions need to adapt their business models and put the necessary tools in place in advance of current and upcoming regulatory policies,” said Paul Marushka, Sphera’s CEO and president. “SpheraCloud Corporate Sustainability–Portfolio Management solution was designed with that in mind, and we are grateful for the expert guidance provided by Blackstone to help ensure financial institutions can accurately identify and manage climate-related risks and opportunities associated with financial service portfolio management.”
Eli Nagler, a Senior Managing Director at Blackstone, said “Blackstone’s investment in Sphera in 2021 represents our alignment on the ability of an ESG strategy to provide enhanced opportunities to create strong, resilient companies and assets that drive value for our investors and supporting businesses globally as they position themselves for success. This newest solution is the latest example of Sphera continuing to bring to market audit-ready solutions that facilitate sound ESG reporting.”
Sammy Lakshmanan, a Principal at PwC said, “Calculating financed emissions is extremely complex, but it is of utmost importance for financial entities to have a holistic view of their GHG inventory and identify climate-related risks and opportunities. PwC is excited to continue collaborating with Sphera, helping bring these new capabilities to the market to support financial institutions with reporting in line with PCAF standards.”
Sphera is the leading provider of environmental, social and governance (ESG) performance and risk management software, data and consulting services focusing on Environment, Health, Safety & Sustainability (EHS&S), Operational Risk Management (ORM), Product Stewardship and Supply Chain Risk Management (SCRM). For more than 30 years, we have served over 7,000 customers and a million-plus users in 80 countries to help companies keep their people safe, their products sustainable and their operations productive. Learn more about Sphera at www.sphera.com. Follow Sphera on LinkedIn.
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