Finance
This page describes one of the possible roles for a carbon on invoices precursor, which aims to associate each product or service with its precise and truthful greenhouse gas weight (or « carbon footprint »). The list of roles is at the bottom of the page.
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The climate challenge leads each profession to re-evaluate its skills in the light of what it can contribute to the climate transition, to reinvent itself. It is an opportunity for finance.
Carbon on Invoices is the name of a climate innovation that, in a few years, has made it possible to equip virtually all accountable organisations, even the smallest, with their carbon footprint and the strategic information that it provides. It relies on cooperation along the production and distribution chains and on the organisation’s accountant, who will break down the carbons he finds on suppliers’ invoices for services rendered (for a public authority) or on customers’ invoices (for a company) (see the mechanism)
Carbon on invoices is also the name of a full-scale experiment to test the innovation and get it off the ground. The first step is to define a common charter for Carbon on Invoices Precursors, describing the commitments they make and from which they benefit from the other Precursors. This page is dedicated to the « finance » part of the charter, as essential partners of the Precursor companies and communities.
For the collective interest, it is a formidable accelerator of the climate transition (see why).
It is also an opportunity for finance. Precursor companies and local authorities provide financiers and investors with an immense amount of accurate, reliable and dated accounting data that can help them simplify and generalise their financing selection and monitoring processes. (See the article Carbon on invoices to facilitate the financing of the climate transition). Precursor players in the finance sector can be the first to adapt their processes and information systems to this new data ; to enhance and support their precursor clients; and to signal to all their partners their commitment to climate change and their ability to « play as a team » in this collective initiative.
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- A financier can be a Precursor as a producer in his operational activity
- He can be a precursor in his lending activity and indicate to his borrowing clients that he will progressively introduce into his processes a valuation of precursors, with a link explaining the C/f logic.
- He can be a precursor in its investment activity, by helping to build a measure of the contribution to the climate trajectory of the footprints of a loan or equity portfolio. Then by telling its investor clients that it will gradually introduce a measure of the contribution of their savings to the climate trajectory.
- Other points to be explored?
Having its greenhouse gas weight on each product represents a fabulous accelerator of the climate transition
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- Every company, city, administration, and individual get the information to manage their climate risk.
- Political, economic, and financial institutions are entering into a virtuous climate competition.
- The political debate is based on a simple and sincere measure that improves the efficiency and equity of climate effort.