The Transition Score
Blunomy developed the Transition Score: using an innovative and transparent methodology, it evaluates the transition made by corporate actors to facilitate dialogue between financial institutions and corporates, focusing on the most material carbon issues and levers and making it possible to allocate capital to the most committed economic players.
The sticking point
Given the multitude of corporate undertakings and objectives when it comes to the transition, it can be challenging for banks and funds to analyse their performance. There are major benefits to financial institutions being able to understand the speed of a company’s transition in relation to their corporate commitments: capital can be allocated to the right projects, and relationships between companies and financial institutions can be streamlined.
Blunomy developed the Transition Score: a methodology which assesses the maturity and speed of client transitions, and makes it possible to draw comparisons with industry peers, instigate strategic discussions and provide information for business action plans on transition financing. The Transition Score analyses a company’s ambitions, actual performance to date, and transition speed; ultimately, it provides an overall score and guidance which is largely absent from mainstream ESG ratings.
Based on publicly available information, the methodology is transparent; this ensures greater auditability and reliability. The score itself is strictly quantitative and doesn’t rely on any subjective indicators. It can be applied to all sectors, incorporating specific rating methods for each industry.
The Transition Score can be used in different ways: it can be used to initiate dialogue with clients, encourage debate and discussion about transition financing, and support opportunity development by identifying the most promising players.