😁 Laugh and Learn: 6 Quirky Definitions to Nail Climate Tech Impact
5 min-read to demystify Climate Tech Impact with 6 Witty Definitions for a Good Chuckle. Let’s go!
👏 And a big welcome to the 27 new followers this week! If you haven’t joined our Climate gang yet, subscribe now:
1. ESG
Imagine a company as a superhero with superpowers. ESG stands for "Environmental, Social, and Governance" – the three areas where this superhero needs to shine. Among these, the "E" is like their superpower that tackles environmental challenges.
Climate Tech funds focus on the "E" because they invest in companies that fight climate change, like superheroes battling pollution and emissions to save the planet.
2. SFDR
SFDR is like the rulebook that guides sustainable finance in the EU. It stands for "Sustainable Finance Disclosure Regulation."
It's like having a Referee on the field, ensuring that companies and funds play fair when it comes to sustainability. SFDR sets standards for disclosing environmental and social information, making sure everyone is transparent and accountable.
3. SFDR Article 6, 8, and 9 Funds
Article 6 Fund: Think of this as the "Green Innovation Lab." It’s the lowest level of impact classification. Funds without a sustainability scope.
Article 8 Fund: This is the "Green Energy Squad." Funds that promote environmental or social characteristics (light green 🟢)
Article 9 Fund: This is the "Impact Avengers." Funds that have sustainable investment as their objective (dark green 🟢🟢🟢)
4.LCA (Life Cycle Assessment)
Imagine you're a detective investigating a company's life story. LCA, or "Life Cycle Assessment," is like following the trail from birth to retirement.
It involves examining every step in a product's life, just as a detective unravels a mystery.
LCA helps companies understand their environmental impact by evaluating raw materials, manufacturing processes, transportation, product use, and even disposal. It's like shining a spotlight on their sustainability journey.
5. Tons of CO2e
Let's compare greenhouse gases to a swarm of pesky mosquitoes.
When we talk about "Million Tons of CO2e," we're counting the total number of mosquitoes in the swarm.
It's a way to measure the scale of greenhouse gas emissions. To solve climate change, we need to reduce this swarm by taking action. For example, if we reduce 10 million tons of CO2e, it's like swatting away 10 million mosquitoes, making a significant positive impact.
6. Impact Attribution and Additionality
Impact Attribution: Imagine you're running a group project.
Impact attribution is the process of determining who is responsible for generating positive impact or reducing CO2 emissions, and who can claim the benefits of those actions.
Additionality: Additionality is like the cherry on top of a sundae. It represents the EXTRA impact that wouldn't have occurred without specific actions or interventions.
It's about assessing the ACTUAL positive change that can be attributed to the cherry, and not the sundae.
CONCLUSION
Want to put it all into practice and listen to the real experts? Check out this week’s podcast episode 👇
PODCAST: MASTERING CLIMATE IMPACT MEASUREMENT
Mastering Climate Impact Measurement: Your Expert Crash Course (ft. Isabelle Canu and Stefan Maard)
I asked two of Europe's Top Climate impact experts and Partners of Climate Tech Funds how they put it all into practice when making investments and growing their startup portfolio.
That's all for this Saturday. Simple insights in 5 minutes.
What do you think about my weekly Newsletter? Love it | It's great | Good | Okay-ish | Stop it
If you have any suggestions, want me to feature a topic in the newsletter or a guest in the podcast, hit me up! Just respond to this email, I respond to every email.
And if you are enjoying this newsletter, the best support would be to recommend it to a Climate friend or colleague 🙏