Carbon4 Finance brings major innovations to its methodology for assessing the risks and contributions of companies worldwide to the low-carbon transition

Carbon4 Finance's proven Carbon Impact Analytics (CIA) methodology has been enriched with new "top-down" analysis capabilities that are highly complementary to its historical "bottom-up" approach. 

These innovations significantly enhance the accuracy of assessments. The CIA methodology is now applicable to the Carbon4 Finance database, which covers 41,000 companies, representing 82% of the world's market capitalization.

Paris, June 2, 2025 - Carbon4 Finance announces a major evolution of its Carbon Impact Analytics (CIA) methodology, designed to measure the risks and contributions of companies, financial institutions and sovereign states to the low-carbon transition. This evolution is based on the introduction of advanced "top-down" analysis elements, significantly reinforcing the accuracy of the indicators applicable to the Carbon4 Finance database. This database covers a total of 41,000 companies, representing 82% of the world's market capitalization, making it one of the most comprehensive on the market.

These developments are in line with Carbon4 Finance's mission to provide financial sector players with increasingly robust and accurate data to inform their investment and financing decisions, steer the climate risk management of their portfolios, promote alignment with the low-carbon transition and meet the requirements of sustainable finance.

The CIA methodology is based on a detailed approach, specific to each sector and activity, to assess the transition risk exposure of companies [and economic players] and their contribution to a low-carbon world. It is based on a bottom-up analysis of companies representing 75 sectors worldwide, using published physical and financial data. Estimators based on these "bottom-up" analyses are then developed for cohorts of comparable companies for over 1,200 activities, and can be used for the "top-down" analysis of other companies covered in the Carbon4 Finance database.

The evolution introduces the following innovations:

Market-leading depth of analysis

This new approach to the "top-down" part of the assessment provides an additional level of analytical finesse compared with current market practices, by making it possible to take precise account of the diversity of a given company's activities, as well as their respective weightings. The assessment of a company's climate performance is thus more nuanced and contextualized, and enables better differentiation between companies.

Robust foundations validated by industry experts of Carbon4 Finance

This development is based on rigorous estimators derived from proprietary bottom-up analyses covering 75 different economic sectors. These estimators have been meticulously reviewed and validated by Carbon4 Finance's sector experts, to guarantee the consistency and comparability of the data provided to customers. Our clients benefit from indicators and ratings based on solid parameters, using up-to-date, representative samples.

Extended coverage potential

The new methodology makes it possible to evaluate any economic entity, provided that a breakdown of revenues by sector or activity is available. It is therefore applicable to a much wider range of players, irrespective of their size, location or field of activity. This offers the prospect of further expanding the scope of companies assessed with the CIA methodology, and of the data provided to users to consolidate results across their portfolios.

About Carbon4 Finance

Carbon4 Finance is the data provider for the financial sector and the climate and biodiversity research office of the Carbone 4 group, which has over 18 years' expertise in the climate field. Carbon4 Finance offers a comprehensive set of data and methodologies covering physical, transition and biodiversity risks. Its clients include financial institutions such as investment funds, asset managers, insurers, index providers and commercial banks, as well as central banks.

Its innovative and exclusive methodologies enable financial organizations to measure the carbon and biodiversity footprints of their portfolios, assess their alignment with the Paris agreements, and measure the impacts of climate change and biodiversity erosion.

Carbon4 Finance's mission is to provide financial institutions with research and data on climate and biodiversity, enabling them to play a full role in the transition to a decarbonized economy that respects the climate and nature.