OCARA, 1er référentiel d’analyse des risques climatiques pour les entreprises

L'Agefi - Dérive climatique, Carbone 4 donne le cap aux entreprises

Face au risque - Lancement d’Ocara : analyser les impacts du climat sur l’activité des entreprises

Vauban Infrastructure Partners (“Vauban”), long term investor in essential infrastructures and Carbone 4, a leading consulting firm specialized in low-carbon strategy and climate resilience, are delighted to announce a new partnership.In a world transitioning to a business resilient and low-carbon economy, it is crucial that the actors of infrastructure financing are equipped with operational and shared tools to contribute to carbon neutrality and controlled climate risks. Following this observation, Vauban and Carbone 4 decided to create a partnership dedicated to developing a methodology for analysing the climate physical risks in North America.This common initiative is based on the existing CIARA methodology (Carbon Impact Analytics for Real Assets), aimed at developing innovative key performance indicators regarding two climate preoccupations:<ol><li>Climate impact: the alignment of infrastructure portfolios to the Paris Agreement.</li><li>Business resilience: the climate risks linked to the assets subject to climate change.</li></ol>Laurent Morel, Associate at Carbone 4 explains: "This methodology benefits from Carbone 4' fifteen years of experience in the field of climate change physical risks. It allows investors to identify potential risks for their portfolios. Infrastructures are particularly exposed to climate change effects due to their long lifetime. Performing a CIARA analysis is the crucial first step for investors wishing to implement a climate change adaptation strategy."Gwenola Chambon, CEO of Vauban Infrastructure Partners added: “Vauban is already committed to being at the forefront of ESG implementation in the European infrastructure sector, through our annual open research with our stakeholders, industrial and academic experts1, and initiatives such as the Infrastructure committee of UN PRI or the initiative for Climate International (iCI). The new development of our partnership with Carbone 4 will allow us to align the calculation methodology of our portfolios’ climate impact globally, a further significant step in advancing our strategic climate plans across our portfolio. This historic partnership will allow Carbone 4 to expand its scope of analysis to all of North America. This represents a significant milestone in the ongoing battle to fight climate change, not just for us; but the whole community.”(1) The Infrastructure impact on climate change in 2021 and The importance the Social License to Operate for the infrastructure sector in 2022About Carbone 4Led by Alain Grandjean, Laurent Morel and Jean-Marc Jancovici, Carbone 4 is an independent consulting firm specializing in the energy transition, which offers its expertise to public and private sector economic players. Convinced that anticipating the climate change constraint is the best possible option, Carbone 4 assists its clients in transforming this constraint into a formidable gas pedal of innovation, a factor of commercial differentiation and an element of motivation for their teams. For the financial sector, Carbone 4 develops methodologies and tools adapted to each business line to enable them to measure and highlight the carbon impact of financing and their contribution to the energy transition.&nbsp;<a href="www.carbone4.com">www.carbone4.com</a><a href="https://ciara.carbone4.com/">https://ciara.carbone4.com/</a>About Vauban Infrastructure PartnersVauban Infrastructure Partners is a leading Infrastructure Asset Manager focused on core infrastructure investments. Headquartered in Paris, the Company employs over 65 professionals, the majority of whom have been working together for over a decade.Vauban targets predominantly European brownfield mid-market assets, and pursues a long-term, yield- driven strategy that matches the underlying nature of the assets &amp; the long-term commitment to all stakeholders’ interests through a strong focus on creating sustainable value. Vauban has raised c.€7.2 billion across 6 funds in core infrastructure from over c.100 investors from 17 different countries and has invested in over 70 assets in the mobility, energy transition, social infrastructure, and digital infrastructure sectors across 13 different geographies.<a href="https://vauban-ip.com/en/">https://vauban-ip.com/en/</a>&nbsp;

CIARA

Vauban Infrastructure Partners and Carbone 4 announce their common initiative to develop a pioneering methodology for analysing physical risks of infrastructure assets in North America

Reaching global carbon neutrality in 2050 will need drastic efforts of decarbonation in all human activities.&nbsp; Mobility represents ~25% of direct worldwide GHG emissions from fuel combustion, and road transport (passenger + freight) accounts for nearly three-quarters of transport CO2 emissions. This sector has to reinvent itself to respond to the climate challenge. All decarbonization levers will have to be activated, through new uses and actions on demand but also through technological developments and especially battery electric vehicles (BEV).&nbsp;A BEV emits less than a conventional internal combustion engine car on its life cycle (source: <a href="(https://www.carbone4.com/en/publication-road-transportation-what-aternative-motorisation-are-suitable-for-the-climate">Carbone 4 study</a>). However, the production emissions of a battery are still significant. Decreasing the carbon footprint of batteries is therefore an important lever to reinforce the decarbonation impact of the BEV everywhere. The currently discussed UE Battery Directive aims to reinforce in the coming years the environmental traceability and carbon performance of the batteries sold in UE.&nbsp;The supply chain of battery manufacturing is also complex and raises many industrial, social, and environmental issues: from the upstream extraction and transformation of metals to cell &amp; pack production and finally its end of life. That supply chain is currently under Asian domination (Korea, China, Japan) and China’s influence is growing quickly. In addition to that context, automotive industry suffers from COVID crisis and supply chain’s disruptions.The development of a sovereign, competitive and low carbon battery industry is now seen as mandatory by most of economic and political players in Europe. &nbsp;Some companies are already developing solutions to decrease batteries' carbon footprint all over its life cycle: lower carbon production of materials, optimized cell and pack production, eco-designed batteries to improve their recyclability and reusability, new recycling processes to valorize most of the materials contained by old batteries. It is therefore key to capture with accuracy those improvements in battery carbon footprint calculation, by using specific values of those innovative processes and materials rather than average values.Therefore, following preliminary studies with Verkor (which is developing battery gigafactories), Carbone 4 is launching an open initiative to improve carbon footprint calculation of batteries, to precisely quantify the emissions related to any battery used in road transportation. It anticipates the upcoming UE regulation, which will ask for such information in the coming years. The carbon footprint calculator will be publicly accessible, to help structure the lowest emissive EU battery industry.&nbsp;That initiative is supported by key players of the EU battery supply chain: EDF, Eramet, Infinity Lithium, InnoEnergy, Plastic Omnium, Tokai COBEX, Verkor and 3 other industrial which will be revealed later.&nbsp;It is still open to additional partners to intensify the development of that initiative for the battery industry.&nbsp;First results will be made public in H2 2022.&nbsp;

Mobility

Carbone 4 launches an open initiative to improve carbon footprint calculation of batteries, supported by key players of the EU battery supply chain

Impact assessment

Carbon footprints and reporting

<h3>Press release</h3><h4>To address coming business disruptions induced by both low carbon and climate change challenges, major European companies join forces with Carbone 4 and its partners to design new strategic foresight tools. Critical decisions will be made in an unstable and disruptive business environment&nbsp;</h4>Both the low-carbon transition and adaptation to climate change are unavoidable challenges to face in the long run. These challenges will arise in a chaotic and uncertain way, and will disrupt both companies’ operations and markets. The president of the French association of large companies, M. Burelle, thus stressed in November 2019 that “companies must build their future by integrating a robust energy-climate foresight analysis in their strategy to&nbsp; better anticipate the potential disruptions on their business environment". This observation, is also outlined by TCFD and has since been widely spread.&nbsp;<h4>Considering a diversified panel of possible futures consistent with physical boundaries&nbsp;</h4>The IRIS initiative addresses to both companies and their stakeholders. Its purpose is to design a new generation of tools and methods to support corporate strategic thinking evolution:&nbsp;<ul><li>Systemic and sectorized "framework" scenarios, suited to the companies’ needs, that will explore different climatic (&lt;2°C and &gt;2°C), technological and sociological pathways. They will also describe the possible transformations along the value chains in coherence with the planetary boundaries (resources availability, environment feedback loop, etc.) and that are now well documented;</li><li>A guidance through the understanding and use of scenarios for strategic thinking via a dedicated skills upgrade platform : “the Scenarios lab”.</li></ul><h4>The time has come for a paradigm shift: transform strategic thinking to build resilient paths for companies&nbsp;</h4>To seize opportunities, manage risks related to this new context and, most importantly, build confidence both within and outside the company, traditional approaches are no longer appropriate. Indeed, they often prove to be focused on short-term and over compartmentalized, carrying results often disconnected to current realities. The strategic thinking of economic players will only be effective (e.g. to prevent investments in potentially stranded assets) only if it includes long term issues, in a global and systemic approach that consider the physical grounds of their businesses.&nbsp;<h4>Systemic approach, consistency with physics laws and relevant data: a basis for a new generation of scenarios dedicated to economic players</h4>Current reference scenarios, initially designed to meet other needs (e.g. public policies assessment or academic researches), present several gaps that reduce their relevance, especially for companies. Beyond the data issue (availability and use), these scenarios often describe transformations whose physical coherence is questionable and do not include a detailed “narratives” which grant meaning to the underlying assumptions. Transformation scenarios must be diversified and shall include the description of the companies’ underlying business activities, as well as ensure their "physical" feasibility, and their overall consistency.&nbsp;<figure class="image"><img src="http://www.carbone4.com/files/wp-content/uploads/2020/11/graph-GDP-Energy_-1024x754.png" alt=""></figure>Regardless of the issuer, almost all current scenarios rely on a decoupling of GDP and energy, while it has never been observed to such an extent. Relying on such scenarios leads to an incomplete understanding of business impacts of low carbon transition by companies<h4>&nbsp; Companies take the lead to think with courage and lucidity about the coming deep transformations of our economy&nbsp;</h4>Several large companies have already joined the IRIS Initiative ; the project team expects to complete the panel in the coming weeks. Such a mobilization of companies will enable us to build a common and opposable framework for reflection in order to rationally and courageously assess the transformations of our society and economy. For any company, it is a matter of sustainability and prosperity. The IRIS initiative is thus an indispensable complement to the normative approaches of "alignment" on a 2°C (or less) pathways. Designed with transparency, all of the IRIS initiative’s deliverables will be freely accessible. The IRIS Initiative partners will join efforts to ensure a wide diffusion and to raise enthusiasm and contributions from both economic and academic players. The target is clear: enable all organizations to embrace and use both tools and methods to reshape their strategy and meet the energy and climate challenges. The project is scheduled to begin early 2021. The first deliverables (scenario narratives, modeling tools, data sets) will be issued in one year later.<h4>Leading international institutions are partners alongside Carbone 4 to take up the challenges of reaching a top academic excellence level while making scenarios easy to read and use by companies</h4>Prestigious institutions have joined forces with Carbone 4 to carry out the work and share their expertise in key areas (modelling; economy and society; corporate strategy and training; environment systems: energy, resources, climate, land use and biodiversity):&nbsp;<ul><li>A leading American university</li><li>An European development bank</li><li>A leading European business schools</li><li>Several leading laboratories from European universities</li></ul>This dream team of partners plus the circle of involved companies will enable to build a bridge between academic excellence and the concrete expectations of the economic players.

Resilience

large_IRIS_siteC4-1.png

medium_IRIS_siteC4-1.png

small_IRIS_siteC4-1.png

thumbnail_IRIS_siteC4-1.png

IRIS_siteC4-1.png

IRIS initiative: connecting business strategy and planetary boundaries

Strategy

<h4>The 2-infrachallenge team is glad to announce the support of an international high-level scientific committee all along the project.&nbsp;</h4>The following members of this scientific committee are:&nbsp;<ul><li>Carel Cronenberg – Associate Director, MRV Manager – EBRD&nbsp;</li><li>Stéphane Hallegatte – Lead Economist – World Bank&nbsp;</li><li>Mireille Martini – Policy Analyst, Green Finance and Investments – OECD&nbsp;</li><li>Morgane Nicol – Programs Director – I4CE&nbsp;</li><li>Aurélien Saussay – Responsable du Pôle Environnement – Sciences Po, Observatoire Français des Conjonctures Economiques&nbsp;</li></ul>This scientific committee aims at challenging and enriching the methodology pillars regarding investment scenarios compatible with the Paris Agreement and climate risks. Also, it will ensure the coherence of methodological choices in light with the latest scientific progress.&nbsp;About 2-infrachallenge&nbsp;"2-infra challenge" is a new method led by Carbon 4 will measure the alignment of infrastructure with a 2-degree trajectory and associated climate risks.&nbsp;This project is supported by major players in the infrastructure: Agence Française de Développement (AFD), La Banque Postale Asset Management, Meridiam et l’EIT Climate KIC To achieve the objectives of the Paris climate agreement, it is essential to redirect funding towards resilient and sustainable infrastructure that will enable the low carbon transition. The choices made in terms of infrastructure today are decisive and determine the future emissions related to their use over the decades following construction. In other words, today's infrastructure investment decisions represent a long-term commitment in terms of climate change impact. In addition, infrastructure is highly exposed to the risks raised by climate change, particularly physical risks and transition risks, which can lead to losses in value. To align their investment strategy with a 2-degree trajectory and to manage climate risks, infrastructure finance actors need operational and shared tools.&nbsp;The "2-infra challenge"methodology, will allow infrastructure investors and managers to answer two questions:&nbsp;<ul><li>Is my investment strategy aligned with the 2 degree objective and how to foster the correct trajectory to achieve this goal?&nbsp;</li><li>To what extent are my assets exposed to climate risks including transition risks and physical risks?&nbsp;</li></ul>This methodology, which will be multi-sectoral and multi-geographic, can be used by all actors of investment and infrastructure financing. Launched in October 2018 as part of the Paris InfraWeek, the development of the methodology will run until June 2019.AFD&nbsp;Lou Bachelier-Degras Tel : +33(0)1 53 44 34 24 <a href="mailto:bachelierdegrasl@afd.fr">bachelierdegrasl@afd.fr</a>La Banque Postale Asset Management&nbsp;Céline Guilbert-Bénard Tel :+33(0)1 57 24 21 07 Celine.guilbert-benard @labanquepostale-am.frCarbone 4&nbsp;Alexia Soyeux Tel : +33 (0)1 76 21 10 00 <a href="mailto:alexia.soyeux@carbone4.com">alexia.soyeux@carbone4.com</a>Meridiam&nbsp;Antoine Lenoir Tel&nbsp;: + 33 (0) 6 07 50 75 85 <a href="mailto:a.lenoir@meridiam.com">a.lenoir@meridiam.com</a>EIT Climate KIC&nbsp;Catherine Ouvrard Tel : + 33 (0) 7 62 20 29 15 <a href="mailto:catherine.ouvrard@climate-kic.org">catherine.ouvrard@climate-kic.org</a>&nbsp;About l’Agence Française de Développement&nbsp;A public and solidarity-based financial institution, AFD is the central player in French development policy. It commits itself to projects that concretely improve people's daily lives, in overseas territories as well as in developing and emerging countries, in accordance with the Sustainable Development Goals (SDGs) and the priorities of the region. the external action of France. Present in 109 countries through a network of 85 branches, AFD currently supports more than 3,500 development projects. <a target="_blank" rel="noopener noreferrer" href="http://www.afd.fr">www.afd.fr</a> &nbsp;&nbsp;About Banque Postale Asset Management&nbsp;With aggregated assets under management (LBPAM + Tocqueville Finance) of €220 billion as at 31 December 2018, La Banque Postale Asset Management (LBPAM) is the fifth largest French asset management company. LBPAM became majority shareholder of Tocqueville Finance in June 2018. A subsidiary owned 70% by La Banque Postale, 25% by Aegon AM, and 5% by Malakoff Médéric, LBPAM manages most of the funds offered to individual and wealth management clients of La Banque Postale. To clients that are institutional investors, insurers, mutual insurance companies, large companies, and external distributors, LBPAM offers open-ended funds, dedicated funds, and portfolio management services. As a full-service manager, LBPAM works in all asset classes. In addition to being a credit management and insurance solution specialist, LBPAM also has recognised expertise in private debt fund management (on infrastructure, real estate and corporate sectors). <a target="_blank" rel="noopener noreferrer" href="http://www.labanquepostale-am.fr/">www.labanquepostale-am.fr/</a> &nbsp;&nbsp;About Carbone 4 Led by Alain Grandjean, Jean-Marc Jancovici and Laurent Morel, Carbone 4 is an independent consulting firm, leader in climate strategy, energy transition and adaptation to climate change. Our team supports public and private economic players in the transition to a low-carbon, climate resilient economy. <a target="_blank" rel="noopener noreferrer" href="http://www.carbone4.com">www.carbone4.com</a> &nbsp;&nbsp;About EIT Climate KIC&nbsp;EIT Climate-KIC is a European knowledge and innovation community, working to accelerate the transition to a zero-carbon economy. Supported by the European Institute of Innovation and Technology, EIT Climate KIC identifies and supports innovation that helps society mitigate and adapt to climate change. EIT Climate KIC believes that a decarbonised, sustainable economy is not only necessary to prevent catastrophic climate change, but presents a wealth of opportunities for business and society. <a target="_blank" rel="noopener noreferrer" href="https://www.climate-kic.org/">https://www.climate-kic.org/</a>About Meridiam&nbsp;Meridiam was founded in 2005 by Thierry Déau, with the belief that the alignment of interests between the public and private sector can provide critical solutions to the collective needs of communities. Meridiam is an independent investment firm specializing in the development, financing, and management of long-term and sustainable public infrastructure projects and assets in the mobility, energy transition and social infrastructure sectors. With offices in, Addis Ababa, Amman, Dakar, Istanbul, New York, Luxembourg, Paris, Toronto and Vienna, Meridiam currently manages 7 billion Euros of assets, and more than 70 projects and assets to date. Meridiam is certified ISO 9001: 2015, ISO 26000 Robust by VigeoEiris and operates on a proprietary methodology in relation to ESG and impact based on UNSDGs. Find out more on: <a target="_blank" rel="noopener noreferrer" href="http://www.meridiam.com">www.meridiam.com</a><a target="_blank" rel="noreferrer noopener">"Download the press release here"</a>

large_Press-release-01.jpg

medium_Press-release-01.jpg

small_Press-release-01.jpg

thumbnail_Press-release-01.jpg

Press-release-01.jpg

The 2-infra challenge methodology is supported by an high-level international scientific committee

Press room

Contact

Press kit

Press releases

Press coverage

Contact us