Impax has developed an impact measurement framework for measuring positive environmental impact through investee companies' end products and services. The impact KPIs are: 1. Net carbon emissions, 2. renewable energy generated, 3. water saved and treated, 4. materials recycled and recovered (and 5. carbon displaced for our Asian strategy only).
The Net Carbon Emissions calculation entails a full carbon footprinting (all direct and indirect emissions) and calculating the carbon emissions avoided through the production and sales of environmental products and services, during the one-year measurement period, by our investee companies. In 2018, the three thematic environmental investment strategies on which impact measurement is conducted, had more carbon avoided than emitted in aggregate or net terms by the investee companies. This methodology, measurement and data has been externally assured by EY.
In 2018, we added impact measurement for one new strategy, including one new impact metric. We additionally calculated how this net carbon avoidance compared to investments into portfolios representing the "global economy today" and the "2-degree global economy" that the Paris Climate Agreement requires, for comparison.
We also mapped how our environmental sub-sectors and strategies align to the UN Sustainable Development Goals (SDGs).
Methodology and Impact Report 2018: https://www.impaxam.com/media-centre/white-papers/environmental-impact-report-2018