Modelling the Just Transition, a journey to net zero in emerging markets
Facing (often-justified) accusations of greenwash, the financial sector is responding by setting in motion lengthy and elaborate efforts to come up with better ESG metrics. Even if not a deliberate delaying tactic, doubling down on measurement is taking time that we just don’t have. This seminar introduces existing the Joint Impact Model (JIM) that can already estimate three key metrics for banking and investment portfolios: GHG emissions, jobs supported and value-added.
Tools like the JIM offer off-the-shelf, robust and comparable solutions to the carbon measurement dilemma, letting banks get on with planning and executing their net zero transitions in a jobs-rich way, starting now. Modelling is especially helpful for the 3,500 banks in developing countries that don’t have the bandwidth to hire expensive carbon accounting consultants and scrub their loan data – but models can also help fill in the (many) gaps in the carbon accounts of global banks. And for those banks that refuse to get started, third parties can use such models to disclose their financed emissions anyway.
The JIM is a publicly accessible web-based tool managed by the non-profit Joint Impact Model Foundation. It uses easily assembled input data (portfolio breakdowns by economic activity, energy production and client revenues) to model financial flows through the economy, thereby giving rapid estimates of the illusive scope 3 financed emissions (aligned to the PCAF global standard), as well as jobs supported, and dollars of GDP contribution. Launched in 2021, the JIM has been used in reports of 16 different financial institutions worldwide and tested by almost 100 institutions with a 3.0 release scheduled for December 2022 which incorporates further improvements which are harmonised with the industry.
In this seminar, we will discuss with experts how the JIM can help financial institutions to:
1. Measure GHGs emissions and positive impacts credibly and rapidly.
2. Reduce build and maintenance costs of carbon accounting and impact reporting.
3. Build strategic capacity on managing the socio-economic impact of the net zero transition.
Additionally, a current user of the JIM will explain their experience with the tool, and we will provide an update on future improvements to the JIM.
Learn more at www.jointimpactmodel.org