Center for Active Stewardship’s Splice tool in the Financial Times

The Financial Times’s Lee Harris, of Moral Money, featured Splice, a new tool from JFI’s affiliate initiative the Center for Active Stewardship.

“Shareholder activists and climate economists have long sought to draw tighter links between a company’s emissions and its long-term financial health. Could there be better ways to measure how the green transition will become financially material? …

” ‘Emissions are a vanity metric. They tell you little about what a company is actually doing to invest in decarbonisation,’ Nolan Lindquist, director of the Center for Active Stewardship, told me. Lindquist, who was previously a research analyst in equities at asset management giant Fidelity, argued that green-minded shareholders need tools to assign more value to durable investments, and strip out transient factors beyond their control.

“For example, emissions can rise due to temporary changes in the grid’s energy mix. Recall the
summer of 2022, when drought-stricken France saw a drop in hydropower generation and nuclear output, which led to greater reliance on gas- and coal-fired power.”

The article also demonstrates the utility of CAS’s new emissions-analysis tool, Splice, which allows users to see what is really driving emissions increases or reductions at major companies.

Read the article.