CICERO Green methodology description for Nasdaq Green Designations
1.5 °C Compatibility Assessment of tools/initiatives
Opportunities
Challenges
Description
Description comments
What the assessment is meant to be used for
5. Investor information: Focus is on assessing and linking environmental and financial sustainability for a given company source
6. Market/user information: Focus is on assessing and linking environmental and financial sustainability for a given company source
Scope of assessment
6. Preselected categories of solutions: As the assessment is based on a comparison between a company and preselected criteria/frameworks ( the Shades of Green methodology, EU Taxonomy, Nasdaq Green Equity Principles)
Stakeholder focus
3. Investors: The results of the assessments is generally targeted towards investors and other actors on the market related to finance/investing
Assessment activities
4. Collecting and disclosing data (Advocating for and/or facilitating data transparency): Provides information in relation to how viable an investment in a specific company is
Time horizon
1. now: Although it is stated that the assessment is meant to help track transition over time, no specific timeframe has been identified.
Methodology
1. Individual LCA/assessment: Assessments of individual companies
Approach
1. Reduce problems from existing sectors: Based on the 'shades of green' (i.e. levels of sustainability used as a metric/main results), the focus is on reducing emissions based on existing structures (e.g. an example of the most sustainable type of innovation are solar energy projects)
State of development
4. Fully working/Published: Assessments can be offered within 6 weeks for companies selected
Process
1. Static (just an assessment): Provide transparent data and investor information based on an existing companies focus
Assessment unit
3. Individual companies/start-ups: Identified as main focus
Solution categories
1. All possible solutions: No specific limitation in terms of what companies can be assessed has been identified
Solution areas
1. Technical: No explicit statement regarding solution area focus has been identified, but all examples provided in the source document focus on technical solutions
Process for verifying data
2. Open data: The information presented in the assessment results is related to the different frameworks/initiative that works as a baseline (i.e. Shades of Green methodology, EU Taxonomy, Nasdaq Green Equity Principles)
Data provided by
1. Start-up/company: Description and data is provided by the assessed company
1.5 C Pathway Focus
2. P2: Although there is nothing to indicate that P1 compatible innovations can be assessed, the interpreted limitation in the metric (the green shade) points towards a focus of significant focus on reduction on reduction from existing value chains
3. P3: Although there is nothing to indicate that P1 compatible innovations can be assessed, the interpreted limitation in the metric (the green shade) points towards a focus of significant focus on reduction on reduction from existing value chains
Scale of operations
5d. Other indicator of scale: Other: No information/data found
1.5 °C Compability Assessment comments
Opportunities
1. Help establish a dynamic solution perspective: Some focus on highlighting the positive aspects of low-carbons solution, however also gives room for high-carbon and resource intensive solution (as the main focus is financial, and to some extent environmental, sustainability
2. Quick and Easy Assessment: Main focus
3. Identifying acceleration potential for solutions: Given that the highest score is presented as solar energy, there is limited potential acceleration of solutions focused on human needs without significant change in focus
6. Solutions have Synergies with other sustainability goals: No significant focus identified
8. Aligned with Mission Innovations Net-Zero Innovation Compatibility Initative: Highlighting and transparently ranking/evaluating solutions (both "good" and "bad" examples) to some extent goes in line with Mission Innovation's NCI
Challenges
1. Lock-in Potential from the solutions: Focus includes, at least to some extent, on assessing solutions that are guaranteed to not have a significant role in a sustainable world (e.g. coal infrastructure)
2. Supply and End-of-Pipe Focus: Examples given have a clear supply focus rather than focusing on, for example, consumption patterns
4. Only including technology innovations: All examples for each of the 'shades of green' given is technological solutions, however the methodology as a whole does not clearly exclude other types of solutions
5. Resource Intensive Solutions: The methodology could likely assess various types of solution, but the focus identified indicates resource intensive solutions like "substantially more efficient manufacturing of fossil fuel intensive materials" having a score that is in the middle of the ranking system used
6. Only Focus on Problems rather than Human Needs: Significant focus on reduction and efficiency rather than opportunity and providing solutions related to human needs
7. Excluding other sustainability aspects (biodiversity and poverty): Little to no focus identified, however it could likely be used to evaluate other sustainability aspects as it has few limitation stated
8. No filter to support sustainable solutions for an equitable world with 11 billion: No filter identified
9. Limiting focus to existing/traditional sectors: All examples are part of existing value chains
11. Lack of implementation in global south/no focus on 11 Billion with equity encouragement: Not covered/mentioned
10. No focus on clustering of solutions: Not covered/mentioned