Prime’s assessment of emissions reduction potential (“ERP”) for early-stage companies is one of our core underwriting criteria as a climate-impact-first organization. It’s also a key aspect of tracking our companies’ progress toward that mission after making an investment, and setting aspirational climate impact operating milestones.In 2017, we partnered with NYSERDA to codify our in-house methodology for assessing ERP.
Writing this report made it clear that there is a gap in the marketplace for tools that can inform investors about the potential for their investments to mitigate future emissions.Existing climate impact assessment tools and services are exclusively designed to retrospectively assess the climate impact of a business as it exists now. This is not applicable for early-stage businesses with small operations and limited or no product deployment.
Starting in 2019, Prime is developing an online, open-source software tool -CRANE -that makes climate impact assessment of early-stage companies less labor-intensive, as well as more data-driven, transparent, and standardized. Our vision is to make it easier for a wide variety of investors, grantors, and entrepreneurs to incorporate climate impact into their own decision-making processes. The project is being supported by The John D. and Catherine T. MacArthur Foundation, NYSERDA, and Massachusetts Clean Energy Center.