Solactive has conducted a follow-on investment in German climate data start-up right. based on science (right).
right.’s X-Degree Compatibility (XDC) Model calculates the contribution of companies, financial products (including stocks, bonds, government bonds), and real estate to climate change and expresses results tangibly in °C. For clients of Solactive, the application of the model allows for simple construction of Paris-aligned indices based on a single, forward-looking metric.
In the fight against climate change, identifying an economic entity’s contribution to climate change holds vital information for its investors and stakeholders as economic evaluations of the respective business will depend crucially on its ecologic footprint.
Marrying rigorous climate science with transparent and tangible °C model outputs, right.’s XDC model applies to various use cases throughout the real and financial economy allowing all actors to speak a common language.
Solactive’s engagement with right. traces back to 2020 when the German index provider made its initial strategic investment. Since then, the two companies collaborated on several index launches, including the Solactive right. 2-degree-aligned index series as well as the Solactive Climate Change Europe BTI Index, with the latter being investable through products exclusively offered by Barclays.
Steffen Scheuble, CEO of Solactive, comments: “Accessing reliable and credible ESG data is a critical success factor for Solactive and our clients. right.’s model not only fulfills both criteria, but its sophisticated yet straightforward nature also delivers the most important information - the actual impact of an economic entity to climate change - in an intuitive, easily accessible manner.”
Hannah Helmke, Founder and CEO of right. based on science, comments: “The renewed backing from Solactive and all our investors speaks to the growth potential and scalability of our products. With its strong customer focus and technology-driven approach, Solactive is a perfect fit for us. We are looking forward to continuing this close partnership, providing financial markets with the robust and transparent data on climate impacts that are needed to direct capital towards the transition to 1.5°C.”