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Fixed Income & Data Services/ICE Climate/Avoided Emissions

Avoided Emissions

Avoided emissions are emission reductions that occur outside of a product or technology’s life cycle or value chain, as a result, of the use of that product or technology*. Examples include electric vehicles, renewable energy generation, heat pumps or sustainable textiles.

Asset owners and managers can use avoided emissions assessments to evaluate how their investments are transitioning to a low-carbon economy and whether their investments are having a positive climate impact. Avoided emissions can be used for pre-investment screening and decision-making, annual sustainability, post-investment reporting and to conduct in-depth impact research.

*Source by World Resources Institute (WRI)

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Overview

ICE Avoided Emissions Methodology Overview

As part of the ICE Climate offering, ICE provides modelled avoided emissions data and analytics (through ICE’s Climate Transition Analytics (CTA) tool), at the company, sector and portfolio level. Product or project-level avoided emissions data can also be provided.

ICE’s methodology for avoided emissions assessments aligns with industry best practice and guidelines such as World Business Council for Sustainable Development (WBCSD), Mission Innovation’s Avoided Emissions Framework and World Resources Institute (WRI) guidance and provides transparency at all stages. This includes undertaking a Life-Cycle Assessment (LCA) approach to conduct avoided emissions assessments, along with ensuring a comparative baseline scenario that is as accurate and reflective of the current market as possible. ICE can also provide a more bespoke approach to suit clients’ requirements.

ICE also collects company-reported avoided emissions data, with validation and quality checks conducted, to ensure acceptance of reported data is in line with ICE methodology and WRI, WBCSD and GHG Protocol guidance.

Product features

Percentage Increase
9,500+
Companies reviewed for reported avoided emissions.
Percentage Increase
50+
Avoided emissions methodologies.
Percentage Increase
Life-Cycle Assessment
(LCA) approach
Percentage Increase
Bottom Up Data & Analytics
Product, company, sector and portfolio-level data and analytics.
Percentage Increase
Scenario Analysis
Current and forward-looking avoided emissions data.

Solutions coverage

Analytics

Related insights

Avoided Emissions: Unlikely heroes

ICE’s research on identifying and quantifying potential Avoided Emissions has highlighted how climate opportunities can be found in unlikely sectors and companies outside of the obvious candidates.

Making an impact: Avoided Emissions

Within environmental and climate analysis, the positive impact of an investment is often not fully recognised or considered, and could be overlooked altogether.

Avoided Emissions: Unlikely heroes

ICE’s research on identifying and quantifying potential Avoided Emissions has highlighted how climate opportunities can be found in unlikely sectors and companies outside of the obvious candidates.

Making an impact: Avoided Emissions

Within environmental and climate analysis, the positive impact of an investment is often not fully recognised or considered, and could be overlooked altogether.

Impact Awards 2023

ICE's Avoided Emissions solution was recently awarded by Environmental Finance as part of 'Impact Awards 2023', for the Impact Measurement and Metrics (Climate Transition) category. The was based on ICE's recent joint whitepaper with Ecofin Advisors on avoided emissions, highlighting ICE's approach and methodological capabilities.
Impact Awards 2023 logo

Quantify your climate risk and opportunity