A new project within the field of Responsible Investment (RI) strategies has been announced between Satellite Applications Catapult and Route2, the global frontrunner in quantifying Value2Society™.
Funded by Innovate UK, part of UK Research and Innovation (UKRI), this new collaboration will enable Earth Observation data, derived directly from satellite technologies, to better inform sustainability-based decision making. This will enhance the range of sustainability data immediately available to investors, guiding capital allocation towards more sustainable business endeavors, and fostering systemic, sustainable change.
Globally, a staggering $35 trillion in assets are being expertly managed through Responsible Investment strategies, which are heavily reliant on the utilisation of sustainability data.
Addressing Sustainability Data Deficiencies
The sustainability data that often informs capital allocation decisions for asset owners and investment managers is increasingly perceived as lacking completeness, consistency, timeliness, and accuracy – qualities essential for steering capital towards more sustainable endeavors.
Route2 has already addressed sustainability data deficiencies through their Value2Society™ (V2S™) Investor Accounting Software, which not only enables the Responsible Investor community to benchmark and monitor the financial and non-financial performance of portfolios but allows investors to fill data gaps.
The V2S™ Investor Accounting Software provides a detailed, accurate and meticulously crafted estimated data set that enables investors to accurately quantify, and generate automatic reporting for, the societal impacts and value generated by their existing and prospective investments.
Comprising geo-specific industry sector and index constituent impact profiles, the V2S™ Investor Accounting Software is enriched with V2S™ data and over 150 positive and negative impact indicators. This addresses the challenges faced by investors in terms of sustainability performance data and fund reporting, whilst helping build responsible investment strategies and identifying material risks and opportunities.
The Earth Observation project will enhance Route2’s investor data, providing comprehensive impact observations at scale, objective impact consistency, and notably, near-real-time capture, offer a stark contrast to the months or years of lag typical of most sustainability data.
Route2 founder and CEO, Daniel Lopez Dias, concluded: “We are thrilled to embark on this exciting collaboration with the Satellite Applications Catapult. The integration of Earth Observation data into our Investor Analytics product holds the promise of addressing the persistent data deficiencies that have hindered effective capital allocation decisions.
“By harnessing the power of satellite data, we are charting a course toward more complete, consistent, and timely insights, empowering the Responsible Investment community to make impactful choices that resonate not just today, but for a sustainable future.”