The Partnership Centers on Entelligent’s Proprietary, Predictive Modeling System to Mitigate Climate Risk Resulting in a Fixed Income Annuity Offered by One of Europe’s Largest Financial Institutions
Entelligent, a Colorado technology company focused on climate change, announced a first-of-its-kind partnership to create a unique, custom investment solution, using Entelligent’s Smart Climate “E-Score.”
Entelligent believes asset managers need options beyond divestment to better manage portfolios against the backdrop of the growing systemic risk posed by climate change. Entelligent’s adaptive intellectual property allows investment managers and owners to direct their capital toward companies that are addressing climate risk by increasing investments in energy efficiency, thus reducing their environmental impact. An examination of Entelligent’s IP has been successfully completed by the U.S. Patent Office and a patent will be awarded shortly.
Entelligent’s Smart Climate approach assists investors in managing their exposure to climate change risk, from regulatory efforts to mitigate carbon emissions to the physical effects of climate change and the transition to new energy technologies. The model has been developed since 2012 by Entelligent’s industry experts, climate scientists, and financial professionals, using investment signals to help asset managers construct more risk-resilient portfolios and direct investments toward greater carbon emission reductions as the world moves away from fossil fuels.
Societe Generale, one of the leading European financial services groups, is the first major financial institution to market a product that incorporates Entelligent’s proprietary, predictive climate model in an effort to improve financial performance. Societe Generale is a founding signatory of the Principles for Responsible Banking, and has committed to reducing its exposure to the thermal coal sector to zero by 2040.
The partnership was borne out of discussions with Societe Generale’s Head of Sustainable Investment Solutions for Global Markets, Isabelle Millat. The product, a fixed income annuity for the insurance industry, is part of its multi-product platform focusing on delivering high quality investment and risk management solutions to asset managers, pension funds, private banks, banks, insurance companies, hedge funds, family offices and sovereign funds and retail network distributors around the world.
Entelligent’s Smart Climate’s E-Scores technology met Societe Generale’s stringent requirements, yielding data not only on resilience to climate risk but also on the financial alpha of its ESG products.
“This is a moment where the engine of capitalism is essential to addressing climate change – the existential crisis of our time,” says Thomas H. Stoner, Jr., CEO of Entelligent.
In July, Entelligent announced agreements with S-Network, a NYC-based leading ESG indexing company, and FactSet, an international open financial data and software solutions company. These strategic distribution partnerships will allow Entelligent to accelerate the commercialization of the Smart Climate E-Scores.
Entelligent has contemporarily launched a Series A equity raise to fund its next phase of growth and provide the market with an alternative and independent data source in the exploding domain of ESG data, especially related to climate change risk.