AXA Climate today announces the launch of new functionality on its Altitude platform, aimed at providing private equity investors with a comprehensive assessment of climate, carbon and nature related risks. This move is in response to the increasing importance of climate change issues in the financial sector.
The Altitude platform allows asset management companies to gain a clear understanding of the climate risks for both their existing portfolio and during pre-acquisition. With the new functionality, companies can now obtain a consolidated view of environmental, social and governance (ESG) risks at both fund and portfolio level, helping them meet key reporting requirements from regulators and institutional investors.
Altitude has also become a collaborative tool for investment, management, and ESG teams to develop action plans for managing risks and pursuing sustainable value creation. This makes it an essential tool for companies looking to transform and align their strategies with climate and ESG goals.
Here’s an example of an executive summary report from Altitude
With its latest update, Altitude demonstrates the ever-increasing correlation between climate and finance, as reflected by the expanding prevalence of robust ESG policies and the growing deployment of article 8 and 9 funds.
A rapidly growing platform
Altitude has experienced remarkable growth since its launch in September 2022, with over 750 companies screened and leading asset management organizations such as Naxicap Partners and RAISE adopting the platform. Its exceptional capabilities have also been acknowledged by ESG Investing, which named it the “Best ESG/Climate reporting platform” in 2023, further reinforcing its reputation as a cutting-edge platform.
Altitude’s algorithm and scientific databases automatically identify all risks related to climate change, carbon emissions and biodiversity loss for businesses, regardless of their sector, size, or location, providing a more accurate valuation and decision-making process for investment committees.
The initial version of the platform empowered analysts to adopt a risk-based approach in their due diligence by incorporating climate data. For each target, it offered a comprehensive summary of the actions required to respond to climate change and mitigate its effects on the environment.
“At RAISE, we use Altitude as part of our climate strategy to analyze and manage climate risks and their impact on biodiversity, at the level of our portfolio companies, in a dual-materiality approach,” explains Benoît ESCHER, Sustainability and ESG Manager at RAISE.
Joanna TIRBAKH, ESG Director at Naxicap Partners, also explains that, “At Naxicap, we have scanned the hundred portfolio investments and are holding discussions with them based on these results. The analysis of physical climate risks is very easy to interpret and act upon.”
CEO of AXA Climate, Antoine Denoix, continues: “We are delighted to reach this new milestone with Altitude. Private equity will be a powerful lever for transitioning to a more sustainable economy. With Altitude, we are giving them the means to strengthen the fight against climate change and biodiversity loss.”
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