1、JUNE 2023Investors Can Measure and Maximize Their Climate ImpactContext and objectivesSource:BCG and GenZero analysis.GenZero partnered with BCG to develop a robust and practical framework that incorporates climate impact into the strategy and measurement of decarbonization investments.The framework

2、 also facilitates GenZero to achieve its double bottom-line mandate.We hope that this study will galvanize greater discussions and action on climate impact measurement among the investment community,as well as foster further convergence on the topic in the market.This study highlights the importance

3、 of climate impact measurement,shares the key considerations when measuring climate impact,and introduces the GenZero Climate Impact Measurement Framework.2Source:BCG and GenZero analysis.Why climate impact measurement mattersFrom framework to practiceFour key aspects to consider 3More than$1.5 tril

4、lion of private investments went toward climate finance over the past five yearsSources:Climate Policy Initiative;BCG analysis.Yet,many investors dont know if they are funding the right opportunitiesPRIVATE CAPITAL INVESTMENTS IN DECARBONIZATION SOLUTIONS($BILLIONS)2662803033334252021202020192018201

5、74Climate impact measurement can help private capital investors make informed decisions at each step of the investment process Source:BCG and GenZero analysis.Portfolio constructionInvestment decisionsPerformance measurementReportingAssess the potential climate impact of individual investment opport

6、unities or a portfolioMeasure the realized climate impact of individual investments or a portfolio5Climate impact measurement is distinct from carbon accounting because it assesses the amount of carbon removed,reduced,or avoidedSource:BCG and GenZero analysis.Assesses the carbon emissions of a compa