Emmi, a carbon risk data platform, has received support from super funds, and landed some high-profile board members, as it aims to make carbon data more accessible and actionable.
Tim Samway, Chairman of Hyperion Asset Management, will be Emmi’s Chairman, while Catherine Brenner, investment banker and founding panel member at Adara Group, will also be joining the Emmi board.
The startup allows investors to understand the carbon risk of a company, including scope 3 emissions, and its alignment with Net-Zero commitments. However, it doesn’t rely on company reporting of net-zero progress,instead, it relies on raw emissions data and the carbon budgets that climate scientists report as being required to reach targets in certain industries. With these insights they report their own assessment of carbon risks, avoiding the hyperbole of self-reported progress.
“Shareholders are increasingly realising carbon emissions carry added financial risk and want to support businesses that are making a measurable commitment to carbon emission reductions. At the same time, regulators are placing closer scrutiny on businesses’ efforts in this respect. However, before now, there was no credible or independent way to easily reconcile these concerns with an accurate assessment of businesses’ exposure or strategies. This left a big gaping hole in the analytical toolkit,” CEO, Michael Lebbon, says.
Lebbon has been working in carbon markets for 15 years, he’s well versed in the vagaries of climate economics and the frustrations of political inaction. He recognised that while there was ample progress in the supply side of the carbon markets, there was far less in the demand side, where investors lacked actionable data.
“Most people drawn to carbon and climate finance markets gravitate to the supply side of the equation – that is the creation of carbon credits and other green certificates. However only focussing on the supply side of the equation creates a one sided and dysfunctional market, resulting in very little action towards carbon reductions. The real solution requires bolstering the demand side of the carbon market so I started designing and implementing ideas which is where Emmi was born.” he says.
Super funds are already starting to use it, with Aware Super, Energy Super and Future Super reportedly supporting it.
“Having a tool like Emmi gives us valuable insights into our carbon exposure and climate risks to ensure our investments are sustainable and continue to deliver for our members in not just years to come, but decades to come,” Liza McDonald says , Head of Responsible Investments at Aware Super.
The company was part of the Startmate Accelerator program, and has received funding from Tim Samway, Hyperion; Catherine Brenner, Director Coca-Cola Amatil; and Patrick Sieb, from Startmate.