How our customers use the ESG Base platform
Review performance predictions in reportable format
Users of ESG Base are often subject to ESG reporting requirements and are interested to find out what the future reports would look like from that asset. ESG Base provides predictions of both financial and environmental performance in reportable format, and helps investors get a clearer view on the future reports that an asset would generate.
"With ESG Base it is possible to set the investment criteria to exactly match our reporting criteria. This feature helps me operate as a more informed investor. When making an investment it is assuring to know what to expect in the future environmental reports of that asset"
Benchmark and compare against alternative assets
In a fast-paced deal flow environment, investors are often faced with resource constraints that prevent them from front loading ESG assessment. As a result, very often at the top of the funnel, attractive deals with healthy and assured financial returns and significant positive ESG impact can be passed. With ESG Base, now there is the option to compare between and benchmark projects on multiple criteria at the top of the deal flow funnel, and execute more effective deal screening.
"ESG Base allows me to visually compare and contrast between different assets based on a variety of criteria. With this feature, I can optimise my screening process on multiple criteria rather than focusing only on cash flow"
More accurate and confident reporting
Continuous monitoring and reporting of asset performance can sometimes be challenging and limited by the lack of robustness of the cloud and digital infrastructures at the location of the asset. As a result, reports can have the risk of being inaccurate or flawed. Because ESG Base provides an independent performance prediction based on a bottom-up fundamentals approach, its predictions can act as a sense check against measured data.
"Our asset location sometimes encounters power outages, and this can lead to missing or corrupt data. If we compare our aggregate measured data to the ESG Base predictions and there are large discrepancies, this is a trigger to take a closer look at our collected data and address any issues in data quality"
Identify greenwashed or exaggerated claims
Proposals for real asset investments may contain greenwashed information or exaggerated claims which are not easy to detect without detailed analysis of the engineering details. Because ESG Base uses a bottom-up first-principles approach, its predictions can help identify and account for outliers in the proposals.
"ESG Base independently predicted the expected financial and environmental performance of the asset and helped us identify and account for outliers at an early stage of deal flow"
Identify focus areas and navigate to innovation
Because ESG Base predictive analysis is based on a bottom-up fundamentals approach, it is an indicator of how the asset will perform if operated effectively. Deviations between predicted and actual performance can be viewed as an indication of operating issues rather than an issue with the asset itself, and would act as a call to action for the asset manager to focus on the operating issues. As a strategic option, an asset manager can use ESG Base's virtual representation of the asset and explore innovative changes to the asset configuration to increase profitability or environmental impact.
"ESG Base scenario analysis feature is an effective way to determine the effect of future capital projects on the performance of the asset. "