Unfettered Access to Credible Climate Data Will Advance Meaningful Action

Fighting climate change is a tall order, as countless climate meetings and summits—including COP28—can attest. But one aspect of the battle is getting easier. A significant obstacle to meaningful action has been the lack of a trusted, central source of verifiable climate data to track and understand companies’ carbon emissions.

This is changing. Last year, Morningstar joined an international industry effort to build an accessible, public source of climate data, called the Net Zero Data Public Utility (NZDPU). This weekend, the coalition, including French President Emmanuel Macron and Michael Bloomberg, unveiled the prototype for the NZDPU. It is the first global, centralized, free database containing private sector climate data that is critical for the net-zero transition. It is designed to provide transparency.

Morningstar has contributed to the platform’s development as an active member of the coalition and as a technical advisor. CEO Kunal Kapoor states, “Morningstar is an enthusiastic member of the Net-Zero Data Public Utility effort. This work delivers a unified, global, high quality climate data repository and we’re proud that our shared commitment to transparency will ensure access for all audiences. The platform reflects an industry effort is an urgent opportunity to democratize access to the climate data that investors deserve. Open, accessible data is critical so each of us can examine long-term material risks and achieve success on our terms."

The pilot NZDPU platform initially includes Scope 1 – 3 greenhouse gas emissions data and reduction targets for approximately 400 companies based on their CDP disclosure. What’s more, the platform seeks to provide jargon-free language and definitions for each of the data points it surfaces in order to better arm investors and the public with information critical to decision making. Members of the public are encouraged to provide feedback on the proof of concept via [www.NZDPU.com] and to participate in a 90-day public consultation process and survey.

We have a long way to go – and the technology, policy, and investment mix will surely change over the next decade. But we’re encouraged Morningstar strives to provide transparent, accessible data to investors of all kinds. We are excited to continue this work to make climate data accessible to all.

This weekend, our coalition, including French President Emmanuel Macron and Michael Bloomberg, unveiled the proof of concept for the NZDPU. The platform is designed to provide transparency into a core set of private sector climate data critical to the net-zero transition. The platform is also the first global, centralized, free database containing private sector climate data.

As an active member of the technical advisory board, Morningstar has contributed to the consultation and development of the platform. CEO Kunal Kapoor states, “Morningstar is an enthusiastic member of the Net-Zero Data Public Utility effort. This work delivers a unified, global, high quality climate data repository and we’re proud that our shared commitment to transparency will ensure access for all audiences. The platform reflects an industry effort to democratize access to the climate data that investors deserve. Open, accessible data is critical so each of us can examine long-term material risks and achieve success on our terms."

The pilot NZDPU platform contains an initial set of key features and functionality for a long-term solution for providing climate data. The platform currently includes Scope 1 – 3 greenhouse gas emissions data and reduction targets for approximately 400 companies based on their CDP disclosure. Members of the public are encouraged to provide feedback on the proof of concept via [www.NZDPU.com] and to participate in a 90-day public consultation process and survey.

Morningstar strives to provide transparent, accessible data to investors of all kinds. We are excited to continue this work to make climate data accessible to all.