Climate investors who undergo third-party verification gain competitive advantages that compound over time: stronger stakeholder relationships, enhanced credibility and market access, risk reduction through better adherence to market standards, and improved confidence in reported outcomes. Those who wait risk falling behind in a rapidly professionalizing market where credibility increasingly determines success.
The climate crisis demands urgent action, but it also demands credible action. Verification ensures your climate strategy can deliver the results your stakeholders expect.
What is impact verification?
Impact verification checks an investor’s impact claims against internationally recognized industry standards.
Process verifications, such as Bluemark’s Practice or Fund ID verifications, examine how investors are helping to create climate impact – typically focusing on the processes and tools they use to assert, manage, measure, and improve their climate-related outcomes. This includes assessment of alignment with impact investing, ESG, and climate frameworks and best practices.
Reporting verifications, such as the BlueMark reporting verification or assurance of climate KPIs & metrics, are typically used to strengthen the credibility of reported climate claims by reviewing the reliability and relevance of climate data used to support impact claims. Examples of climate reporting verifications include assurance of implementation of avoided emissions methodologies, ambition levels of net zero targets, and disclosure alignment to TCFD.
Why is verification needed for climate investing?
Getting independently verified is particularly crucial for climate investors given the high stakes of climate action and growing concerns about greenwashing. Climate impact verification can play a crucial role in building trust and credibility in climate and transition investing as a distinct approach that goes beyond ESG considerations.
Verification also provides climate investors with an opportunity to regularly assess their alignment with evolving climate science and best practices, ensuring their strategies remain competitive with peers and effective as the industry further institutionalizes.
As BlueMark client Clime Capital shares – “Independent verification and benchmarking are critical to building a resilient impact investing ecosystem. We value BlueMark’s efforts to provide these tools, which not only enhance transparency but also help organizations like ours continuously improve and scale our impact with integrity.”
What does climate impact verification typically involve?
Investors complete an intake survey and provide documentation covering aspects of their impact strategy, processes, and reporting approach. A team of experts will review survey responses and data room materials, and meet virtually with the team to discuss and review the information provided. Verifiers will deliver the results of the assessment that you can share with your stakeholders to enhance transparency and credibility, alongside recommendations which your team can use to further align with best practice.
Climate investors come to BlueMark for a range of services including:
- Receiving third party feedback and assurance of key metrics and targets
- Undergoing a standardized assessment to convey the strength and credibility of their impact approach to a wide range impact LPs
- Receiving benchmarks to better understand and compare their performance against other climate-focused strategies
Which standards may be covered through a climate impact verification?
- Impact Management Norms & Impact Performance Reporting Norms (Impact Frontiers)
- Operating Principles for Impact Management
- UN Principles for Responsible Investment (PRI)
- Task Force on Climate-related Financial Disclosures (TCFD)
- Partnership for Carbon Accounting Financials (PCAF)
- Net Zero Asset Managers Initiative / Net Zero Investment Framework (NZIF)
- Science Based Targets initiative (SBTi)
- Global Reporting Initiative (GRI)
- Sustainability Accounting Standards Board (SASB)
- International Sustainability Standards Board (ISSB)
- Sustainability Linked Loan Principles (SLLP)
- International Capital Market Association (ICMA) Green Bond Principles
- EU Taxonomy
Ready to get started? Reach out to [email protected] to learn more about BlueMark’s climate impact verification offerings and to connect at NYC Climate Week if you’ll be in town!
Amelia Clark is the Client Services Manager at BlueMark.