What is an Assessment?

What is an Assessment?

Each Climate Impact ScoreTM assessment includes a summary of the investment’s score. The summary provides a quick, easy way to see the investment’s climate impact and how it compares to best in class scenarios.

Behind the summary score is a comprehensive assessment that is completed using a proprietary methodology developed for the specific sector the project is in. The assessment includes a full report that provides a summary of the project or portfolio of projects scored, an overview of the scoring methodology, details on the assessment numbers and additional content. In developing its methodologies, the Reserve’s approach is to provide a rigorous standard against which to quantify the greenhouse gas impact of an investment over a project’s lifetime. The rigor, comprehensive nature and transparency provide a heightened level of confidence and assurance in the climate impact an investment is supporting. Below is a portion of a sample assessment for an investment that includes several small-scale energy efficiency projects.

Small-Scale Energy Efficiency (EE)/Renewable Energy (RE)
In the assessment of small-scale renewable energy supply projects, we receive basic information about the facilities and the energy conservation measures (ECMs). Using this information coupled with powerful databases of energy use and efficiency, we make standardized estimates of baseline energy use and expected efficiency gain. An investment will typically fund many energy efficiency projects as a portfolio to aggregate to a scale that is attractive to investors. The benefits of all projects within the portfolio are then aggregated to provide a single assessment of the entire investment. The examples below represent programs that pool together such small project loans into larger investment funds. The “best in class” performance for energy supply projects is zero GHG emissions, whereas the “best in class” for energy efficiency projects depends upon the specific upgrade scenario.

Example Fund 1 Example Fund 2
Renewable Energy Projects 21 2
Energy Efficiency Projects 50 77
Total Loan Amount $17.3M $25.1M
GHG Savings Over Expected Useful Life (rounded to thousands) 68,000 tCO2 140,000 tCO2
GHG Intensity of Investment 3.9 t/M$ 5.6 t/M$