How Greenscope helped Naxicap estimate the carbon footprint of its portfolio companies

Naxicap chose Greenscope to estimate the carbon footprint of 49 companies, representing 86% of Naxicap's Equity value within the ESG scope

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Customer stories naxicap

đź’ˇSnapshot & Key takeaways

  • Naxicap sought a more detailed estimate of the carbon footprint for 49 portfolio companies by using a dedicated carbon questionnaire.
  • The goal was to meet transparency and environmental objectives as an investor while also raising awareness among the portfolio companies and encouraging them to conduct their own carbon assessments through this initial estimate.
  • By leveraging Greenscope's expert solution and support from its ESG analysts, Naxicap provided its climate team with a turnkey solution to:

    > Assess and manage the carbon footprint of its funds and portfolio companies year after year.
    > Identify decarbonization actions to be implemented by each portfolio company, based on Greenscope's analysis.
    > Effectively communicate with the portfolio companies through carbon summary reports.
  • Greenscope's carbon module automates the calculation of carbon footprints by using emission factors referenced in the platform.
  • Greenscope digitized the questionnaires, automated data collection and analysis, and provided a visual carbon profile along with consolidated dashboards, allowing the fund to track performance, compare results, and set goals to improve its impact year over year.
  • Naxicap now has a better understanding of the carbon emissions of its portfolio companies, enabling it to take action and significantly improve its environmental impact.

👱 Client’s Identity Card

  • French private equity fund specializing in small and medium-sized enterprises
  • Finance
  • 100-150 employees
  • Greenscope's mission: Carbon footprint assessment covering Scopes 1, 2, and 3

⚡ Context & Challenges

Naxicap Partners is a French player in the private equity market, carrying out LBO and growth capital operations in France, Benelux, Germany, and Spain across various sectors such as healthcare, agriculture, and real estate.

Greenscope’s carbon footprint assessment is part of the regulatory context of the SFDR, which requires asset management companies to report on the non-financial performance of their portfolio companies, specifically regarding their greenhouse gas emissions and reduction strategies.

To conduct this exercise, Naxicap had two options:

  • If the company had already conducted its carbon footprint assessment for Scopes 1, 2, and 3, the results were directly collected on the Greenscope platform.
  • If the company had not yet conducted a carbon assessment, Greenscope provided an estimate of the carbon footprint across all three scopes, based on key emission sources and leveraging ADEME’s impact factors.

Several challenges had to be addressed in order to assess the carbon footprint:

  • Identifying all activities contributing to the carbon footprint.
  • Efficiently collecting and analyzing data (ensuring data consistency, etc.).
  • Linking impact factors to activity data to automate the results.
  • Integrating historical data for accurate trend analysis and comparison.

Greenscope was thus commissioned to:

  • Estimate the carbon footprint for Naxicap’s 49 portfolio companies.
  • Create dashboards displaying Scopes 1, 2, and 3, along with detailed emission sources.
  • Interpret the results and the evolution of the carbon footprint in comparison to historical data.
  • Provide relevant analyses for each portfolio company to help improve Naxicap’s overall environmental impact.

✔️ Solution & results

Greenscope was selected for the flexibility of its platform, its user-friendliness, and its ability to support the company in addressing ESG challenges with the right level of service and expertise.

The first step of the mission was to identify the scope of greenhouse gas-emitting activities and then digitize the carbon assessment questionnaires so that the portfolio companies could begin entering their activity data. Each portfolio company received a personalized questionnaire, tailored to the type of information available within the company (physical data, monetary data, etc.).

We then collected data on Scopes 1, 2, and 3, along with emission sources from the 49 portfolio companies, covering over 10 different sectors such as healthcare, cosmetics, food and beverage, real estate, and more. Our ESG experts and account managers provided continuous monitoring of the data entry and response rates to ensure data quality was maximized.

Greenscope extracted this data via the platform and conducted an analysis for each portfolio company, regularly checking data consistency to produce visual carbon summary reports. We then consolidated the data to create performance dashboards.

As a result:

  • A carbon assessment was completed for all 49 portfolio companies.
  • Customized dashboards, visual carbon profiles, and PowerPoint summary reports were created, detailing emissions by scope and emission source.
  • Tailored analyses were provided on how to improve environmental performance, adapted to the specific context of each portfolio company.