What we do
Breaking away from the inadequacies of linear projections, Zerolytics embraces a revolutionary method to understand a company's financial DNA related to climate risks and financial implications. By leveraging a system dynamics approach, enhanced by AI, we craft financial digital twins.
These models scrutinize a company's historical investment decisions, assets, and net zero objectives, providing a profound understanding of how they'll navigate their climate transition. Our tools answer pivotal questions such as:
Are companies likely to achieve their net zero targets?
What are the financial implications?
How can one distinguish leaders from laggards?
Asset managers must balance the need for proactive climate action with competitive financial returns. Our solution forecasts companies' carbon emissions, benchmarks emissions against stated reduction targets and quantifies the financial implications of achieving net zero.
Be leveraging our deep insights asset manager can make better informed investment decisions that align with both environmental and financial mandates.
System dynamics
System dynamics, developed in the 1950s by Jay Forrester at MIT, represents a foundational approach in understanding and simulating complex systems. This methodology extends beyond traditional linear analysis, incorporating feedback loops and time delays, representing organizational behavior and offers a better reflection of real-world physical and decision-making processes.
By modeling various scenarios within this framework, system dynamics facilitates a deeper comprehension of how different factors interact over time. It is especially effective in scenarios where organizational, environmental and economic factors are deeply intertwined, enabling a more nuanced understanding of long-term effects.