Assessing the credibility of companies' net zero commitments
Unique financial digital twins
designed to forecast companies' emissions pathways and CapEx allocation.
Purpose-built analytics
to help assess the credibility and feasibility of companies' net zero plans and targets.
Data-driven insights platform
enabling asset managers to deliver both competitive financial returns and net zero alignment.
Insights to deliver both competitive financial returns and net zero alignment
Unlocking the path to net zero emissions hinges on companies' CapEx allocation.
Just as Modern Portfolio Theory emphasizes asset allocation's importance for the performance of investment portfolios, companies' CapEx decisions — whether carbon-heavy or low-carbon — directly influence future profitability and net zero alignment.
Our platform empowers asset managers to scrutinize listed companies' CapEx strategy by highlighting the trade-off between costs, financial returns and climate action.
Climate Action 100+ Companies
We provide forward-looking indicators and tools to assess the credibility of Climate Action 100+ focus companies' net zero transition plans and quantify the financial implications.
Will companies achieve their net zero targets?
We measure companies’ transition readiness and progress by quantifying the gap between forecasted emissions pathways and stated reduction targets. We also provide net zero emissions pathways by analysing what it will take to reach net zero in terms of actions and CapEx.
What are the financial implications of net zero alignment?
We analyze what it will take for companies to reach net zero and the impacts on revenues, profits and CapEx allocations.
How to distinguish transition leaders from laggards?
We provide forward-looking transition metrics, KPIs and league tables to evaluate companies’ performance against peers globally.
What are the key factors influencing companies’ performance?
Harness our financial digital twins to gain deep insights into material factors impacting companies’ emission pathways and financial performance. We provide tools enabling customers to simulate various scenarios and assess the impact of changes in key parameters.
Our AI Assistant is here to help
Ask your questions to our AI Assistant and dive deep into the fabric of the financial digital twins to unlock powerful insights. The AI Assistant is your personal guide through the intricacies of our modeled financial digital twins, offering a user-friendly interface to explore complex data.
Ready to assess the credibility of companies' net zero targets?
Our platform is being used by a number of leading asset managers. Join them in doing your own analyses based on our financial digital twins.
Request your demo todayFrequently asked questions from our users
What is the biggest dilemma facing asset managers in relation to the net zero transition?
As all asset managers know, the primary dilemma in the context of the net zero transition is effectively navigating the intersection of financial performance and the imperative to address climate change. Striking the right balance between sustainable investments aligned with net zero goals and delivering competitive financial returns poses a considerable challenge. Asset managers grapple with evaluating the credibility and feasibility of companies' net zero transition plans, understanding the evolving regulatory landscape, and managing the inherent uncertainties associated with transitioning to a low-carbon economy. Successfully addressing this dilemma requires a strategic approach that integrates climate considerations into investment decisions while upholding financial objectives, ultimately contributing to a sustainable and responsible transition to net zero emissions.
How does Zerolytics differ from other analytical tools in the market?
The net zero transition is inherently non-linear, given the complex interplay of influential factors. Traditional linear financial models are, therefore, ill-suited for accurately capturing the dynamics of this transition. Zerolytics stands out in the market for its unique approach to integrating system dynamics and financial modeling, offering a more holistic and dynamic approach to business analytics. Unlike traditional tools which often rely on static data and linear analysis, Zerolytics utilizes advanced modeling and financial digital twins to simulate complex business scenarios and forecast costs related to reaching net zero. This predictive capability, combined with a user-friendly interface, makes Zerolytics particularly effective for asset managers, asset owners and companies looking to understand the long-term transition risk towards a future net zero scenario.
What is system dynamics?
System dynamics is a methodological framework used to understand, model, and analyze complex systems. It involves the study of how different elements within a system interact over time, often focusing on feedback loops and time delays that influence the behavior of the entire system. In the context of business analytics, system dynamics helps in capturing the interdependencies and nonlinear behaviors of various business components, from market dynamics to internal processes. This approach allows for more accurate forecasting and decision-making, as it considers the evolving nature of business environments and the cumulative effects of decisions over time.
What is a financial digital twin?
Hundreds, if not thousands, of companies are on the cusp of undergoing massive transformations, akin to an industrial revolution. At Zerolytics, we believe this presents both risks and opportunities. For asset managers, such opportunities to create alpha are rare. However, having a fair shot at outperforming the market and generating alpha for our clients requires a deeper understanding of climate transition risks than what the market currently offers. That is why we at Zerolytics have created financial digital twins, virtual models that replicate and analyze a business's financial operations, including cash flow, expenses, and investments. As a subset of digital twins technology, these models provide a controlled environment for users to evaluate the financial effects of various scenarios and decisions, thereby facilitating more informed and strategic decision-making.