NEC -

Net Environmental Contribution

Quick description

The NEC is a user-friendly tool that measures the environmental impact (climate, biodiversity, resources) of an economic activity, company or sector to deliver a net contribution value. The indicator attributes a single number calculated on a scale from -100%, for the most damaging activities, to +100% for clear environmental solutions that fulfill the same given function, 0% being the world average.

Designed to inform and empower investment decision makers and corporates, it uses physical data from across the whole value chain to provide a snapshot of an activity’s net environmental contribution and it can be applied at a company, portfolio, index or product/source level.

 

The NEC metric can be used to:

  • Measure Risks and Opportunities
  • Implement smart investment strategies
  • Engage dialog with investees
  • Gain in reporting clarity and transparency
  • Demonstrate compliance and achieve certification

Sustainable finance associated use case

Alignment:

  • EU Taxonomy: provides complementary analysis and more refined views on EU taxonomy blind spots

 

Impact:

  • Environmental Impact: Climate change, biodiversity (direct & indirect) & resources  (water, soil & land, …). Hollistic & relative metric based on physical impact in a life cycle analysis perspective
  • biodiversity
  • pollution
  • water / marine resources
  • Climate change mitigation
  • Circular economy transition

Risk:

  • Transition risk: risk and opportunities assessment

 

Sustainability tools:

  • Reporting: See the example of Sycomore AM reporting on its fund Sycomore Europe Eco Solution
  • Impact Measurement: Relative metric based on physical impacts in a life cycle analysis perspective
  • Sustainability Rating







A tool developped by:                 


In partnership with:                             


Financed by:                 
     

Credit : This tool has been made in the context of the EquipEx+ ANR-21-ESRE-0036:

Special thanks to Maria VILLALONGA, Thibaud BARREAU and all other contributors.