CREDIT & EQUITY INVESTORS
For investors asking how to invest into energy companies in the future. Orbio helps benchmark existing energy portfolios on emission performance, and model related transitional risks.
WHY NOW
With the EU and US imposing stringent regulations on emissions, the financial sector faces heightened risks. It is also a critical juncture where many asset managers and financiers are trying to understand how to invest in oil & gas in the future.
Accurate asset-level emissions data is essential to better understand the cost of abatement for your portfolio in the future energy transition, whilst also understanding what could be the associated reputational risks along the way.
Investors need to understand the true emission profiles of their portfolio companies to make future-proof investment decisions in different transition scenarios.
Orbio maps emission events to assets from parent (operated) and equity (non-operated) entities across the globe every couple of days.
This enables investors to understand portfolio emissions under-reporting, the cost of abatement, and related transition risks on an apples to apples basis for the first time.
What % of a company, bond, or subsidiaries Scope 1 emissions are made up from measured methane emissions vs what is reported.
From recent research we found that for some companies measured methane emissions increased their overal scope 1 emissions by 17%
How much will it cost this company to abate methane emissions from their operations?
Through asset-level emissions mapping and modelling, Orbio is able to derive a cost of abatement for all entities related to parent companies in the oil & gas sector.
Contextualising emissions data and abatement costs within wider regulatory and market movements.
This helps investors understand the speed of which companies in their portfolio will need to transition in the coming years.
Case study
Orbio partnered with a leading investor in the energy space to help them better understand the cost of abatement for one of their portfolio companies in the coming years.
We found that the cost of abatement for this particular portfolio company could represent 8% of their total net-income.
We did this by generating yearly totals for each individual facility owned by the portfolio companies. From there we modelled the average cost to decarbonise the infrastructure based on the type of production and the equipment on site.
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