Let the Planet Speak

Environmental VAR™ and Risk Scores

Fill the environmental data gaps with Big Data and AI technology

QuantCube

ESG Solution

 

Environmental VAR™ and Risk Scores to provide unique ESG insights

QuantCube developed one of the most sophisticated Environmental Risk Scores by leveraging its strong expertise in processing vast amount of alternative data.  QuantCube aims to fill the existing data gap for ESG investment solutions with reliable, comparable and transparent real-time environmental intelligence.  Tapping into billions of alternative data points and especially its proprietary Asset-mapping database, QuantCube’s Environmental Risk Scores are designed to address two key challenges for sustainable investment:

  • To effectively monitor the impact of the activity at a company or country level on the environment

    • Example: Air pollutants from a company might have a negative impact on atmosphere or biodiversity

  • To provide comprehensive metrics to gauge the impact of environmental changes on a company or country

    • Example: increased risk of floods or heat waves may affect company’s earnings prospect negatively

Environmental Risk Scores at company level aim to assist sustainable investment decisions and can be incorporated in robust portfolio construction process.  Country level Environmental Risk Scores are useful to gauge the overall risk for each environmental factor at a specific country.

For company level analysis Environmental Risk Score are then translated into a financial risk,  Environmental VAR™ (Value at Risk).  QuantCube Environmental VAR™ is expressed in dollars and provides the financial risk based on each Environmental Risk Score.  Air Pollution and Deforestation Scores are expressed in tons emitted and km² deforested respectively.  As for  Biodiversity, Drought and Flood Risk, scores range from 0 to 1.  

Environmental Risk Scores

Environmental Risk Scores and Environmental VAR™ are accessible via QuantCube Environmental Intelligence Platform (EIP), API and FTP for both country level and company level.

Air Pollution Score

Monitors emissions of multiple major pollutants at the facility level. Company and country level analysis.

Pollutants covered: Nitrogen Dioxide, Sulfur dioxide, carbon monoxide, Methane

Data source: Satellite Sentinel-5P with Tropomi spectrometer instrument (resolution of 7 km x 3.5 km) and meteorological data

 

Drought and Flood Risk Score

Evaluate the risk related to extreme climate events such as drought and flood using meteorological data. Also evaluate climate hazard and vulnerability for each asset. Company and country level analysis.

Data source: Sentinel-2 multispectral satellite images with 10m resolution and meteorological data

Deforestation Score

Monitors deforestation around mines with QuantCube’s proprietary computer vision algorithms. Focuses on both deforestation and re-forestation to monitor the trend. Company level analysis.

Data source: Landat-8 and Sentinel-2 multispectral satellites images with 10m resolution

 

Biodiversity Score

Tracks the impact of a company’s assets on sensitive local biodiversity areas. Company level analysis.

Data source: Sentinel-2 and Pléiades satellite images

 
 

Working closely with Satellite Technology Experts

QuantCube benefits from its strong collaboration with ESA (European Space Agency) and CNES (Centre National d'Etudes Spatiales)

QuantCube Environmental Risk Scores leverage QuantCube’s existing technology for satellite data analytics. Satellite images are being taken worldwide from independent satellite data sources including ESA and CNES.  Using highly sophisticated Computer Vision technique QuantCube is able to process satellite imagery accurately to offer robust environmental intelligence. 

Get in touch and find out more about QuantCube’s ESG Solution