Insights

Our research applies AI-based methodologies to quantify impact variables that traditional analysis cannot capture. Here you'll find our publications, methodology explanations, and commentary on the evolving landscape of impact investing.

Featured Publication

The Climate Efficiency Ratio: A Tool for Impact-First Investors

The Problem

Two investors each allocate €10,000 to climate-focused equities. One purchases a solar manufacturer. The other purchases an industrial conglomerate with a small green hydrogen division. Both believe they are "investing in climate solutions."

One avoids 167,000 tonnes of lifetime CO₂. The other avoids 0.07 tonnes.

Same capital. Same stated intent. A 2.4 million-fold difference in climate impact.

The Solution

The Climate Efficiency Ratio (CER) answers a question no existing metric addresses: how much capital is required to avoid one tonne of emissions?

CER = Market Capitalization ÷ Lifetime Carbon Savings

Lower CER indicates greater efficiency—fewer euros required per tonne avoided.

Key Findings

  • CER spans six orders of magnitude across 100 climate-focused companies
  • The interquartile range alone represents a 20× efficiency difference
  • Within sectors, efficiency varies 10–120× between direct competitors
  • A 5% allocation to high-efficiency companies can deliver 32× more carbon avoidance than 100% in a diversified climate ETF

The Impact Sleeve Strategy

Rather than spreading capital across all climate companies, investors can concentrate a small allocation (5–20%) in the most efficient tier while maintaining return-focused positions in the remainder. This resolves the perceived tradeoff between impact and returns—it's not impact versus returns, it's smarter allocation within the impact portion.

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How AI Enables This Research

Traditional impact measurement relies on self-reported company disclosures and analyst estimates—subjective, inconsistent, and often disconnected from actual outcomes.

Our AI systems analyze primary data sources: product specifications, emissions factors, lifecycle assessments, regulatory filings, and academic research. This bottom-up approach calculates impact metrics from first principles, revealing insights invisible to conventional analysis.

The result: precision where none existed before.

Upcoming Research

We are extending our methodology to additional impact themes:

Access to Healthcare Quantifying capital efficiency in expanding healthcare access—cost per quality-adjusted life year gained.

Education and Skills Development Measuring the capital required to deliver measurable educational outcomes at scale.

Sustainable Agriculture Efficiency metrics for agricultural investments balancing yield, environmental impact, and food security.

Water and Sanitation Capital efficiency in expanding access to clean water and sanitation infrastructure.

Affordable Housing Quantifying the cost per household housed across different investment approaches.

Food Security Measuring impact efficiency across the food system from production to distribution.

Each theme applies the same principle that drives CER: identify a measurable outcome, calculate efficiency across the investment universe, and enable precision allocation.

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