Connect Invest is an API solution that provides carbon emission estimations for stocks & shares investments.
The rise of sustainable investing
More and more investors, both individual and institutional, recognise ESG (environmental, social, and governance) factors as drivers of value and consider a company’s impact when deciding whether to acquire its shares or not. Carbon emissions, being the biggest contributor to the acceleration of climate change, are a key part of ESG investing.
88% of Millennials are interested in investments that address climate change (Morgan Stanley, 2021)
With the growing awareness of climate change consequences, people of all generations are selecting investments that align with their values because it poses an attractive opportunity to maintain strong financial performance while having a positive impact on the environment. For example, as much as 84% of millennials cite investing with a focus on ESG impact as a central goal (EY, 2020) and understanding the carbon footprint of their investments is crucial.
Why is sustainable investing important?
As a shareholder in a public company, you own a small portion of the company and also a small portion of the carbon emissions that the company generates. Therefore, it is important for every investor to understand the emissions of their investment portfolio and their own carbon footprint.
Sustainable investing allows investors to use their money to create change and have a positive impact on the environment. Understanding the carbon footprint of an investment portfolio is the first step investors can take to address climate change.
Why is sustainable investing challenging?
Building a diversified portfolio that is also sustainable is tricky because there are very few investments that are carbon-neutral or carbon-negative and the carbon data of “regular” investments is not easily accessible.
This is why investors find it difficult to understand the carbon footprint associated with their potential investment, not to mention their whole investment portfolio.
Why do investors need to know the carbon footprint of their investments?
Because when you buy shares in a company, you inherit responsibility for a percentage of that company’s carbon footprint as your own.
Investors are increasingly interested in understanding the carbon footprint of their investments so they can consider this factor when making investment decisions and build a more sustainable portfolio. Moreover, investors are looking to add the carbon footprint of their investments to their overall, personal carbon footprint and better understand their individual impact on the environment.
The same reasoning applies to our clients – investment banks or other institutional investors. They need to evaluate their portfolio from the carbon footprint perspective in order to inform change and become more sustainable. And this is what their customers will be looking for anyway.
How is Connect Earth providing this data?
At Connect Earth, our mission is to empower consumers and businesses to make more sustainable choices. We believe that together we can transition towards a low-carbon economy. We are building an API-based data infrastructure to power this movement.
Our new product Connect Invest is a quick, easy-to-integrate API solution that allows investment platforms to retrieve scope 1 and scope 2 emissions information related to a specific investment. With our solution, investment platforms and banks have easy access to reliable, up-to-date data that allows their users to understand the carbon emissions of potential and existing investments within their portfolios.
Who will benefit from using Connect Invest?
- Investment platforms and banks can display carbon emissions estimations for all investments to allow investors to make informed decisions based on sustainability factors. Individual investors can then access carbon emissions data associated with a potential investment before adding it to the portfolio.
- Investment impact platform providers can calculate the carbon footprint of their customer’s portfolios. Investors can then understand the carbon emissions of their existing investment portfolio and add it to their overall, individual environmental impact.
Get started with Connect Earth!
At Connect Earth, we democratise easy access to sustainability data and aim to foster innovation in the climate space by removing one of the most challenging barriers: the aggregation and standardisation of emissions data.
About Connect Earth:
Founded in 2021, Connect Earth is a London-based environmental data company that democratises easy access to sustainability data. With its carbon tracking API technology, Connect Earth is on a mission to empower people to make sustainable choices and bridge the gap between intent, knowledge and action. Connect Earth supports financial institutions in offering their customers transparent insight into the climate impact of their daily spending and drives sustainable finance.
Reach out if you think Connect Earth can help your business.