Unlocking Climate Investment Opportunities with Green Revenue Analytics

Aligning portfolios to climate solutions is critical for investors targeting net zero. But how can you systematically identify and quantify investments in renewables, EVs, and other technologies enabling decarbonization? Enter green revenues - a powerful metric to measure portfolio exposure to climate solutions.

In this article, we explain what green revenues are, how to leverage them for climate analysis, and how 15Rock's Athena platform empowers investors with cutting-edge green revenue capabilities.  

What Are Green Revenues and Why Do They Matter?

Green revenues refer to the percentage of revenue companies generate from climate-friendly products and services like:

• Renewable energy
• Electric vehicles
• Energy efficiency solutions
• Green buildings

As a financial metric, green revenue has several benefits:

• It captures the commercial viability and business maturity of climate solutions.
• Applicable across sectors, enabling consolidation for entire portfolios.
• More nuanced than binary green/non-green classification of companies.
• Aligned with established carbon accounting frameworks.

For investors targeting net zero, green revenue helps answer a critical question - how aligned is my portfolio to the climate solutions needed to decarbonize the economy?

Introducing Weighted Average Green Revenue (WAGR)

For portfolio analysis, green revenue is aggregated using Weighted Average Green Revenue (WAGR). It works similarly to the popular carbon metric Weighted Average Carbon Intensity (WACI).

Specifically, WAGR calculates the weighted average green revenue percentage across all portfolio holdings. The steps are:

1. Calculate green revenue percentage for each company.
2. Weight this by the company's portfolio weight (e.g. market cap).
3. Sum the weighted green revenue % across all holdings.

The result is the percentage of your overall portfolio exposure aligned to climate solutions, or your portfolio's WAGR.

Why WAGR Matters

WAGR provides investors a tool to:

• Quantify climate solution investment - Report WAGR alongside carbon footprinting for a complete picture.
• Set green targets - Define minimum WAGR relative to benchmarks to increase climate solution alignment.
• Inform investment strategy - Design thematic climate investing strategies using green revenue thresholds and tilting.
• Engage investees - Monitor WAGR to engage companies on improving climate solution alignment.

As climate risk management matures, WAGR offers investors a consistent methodology to also capture emerging climate opportunities.

Unlock Green Revenue Analytics with 15Rock Athena

The biggest challenge with green revenue analysis is limited disclosure by companies. That's where 15Rock Athena comes in.

Powered by patented AI, Athena offers market-leading green revenue capabilities:

• Comprehensive company coverage - Granular green revenue data for over 10,000 companies globally.
• Technology intelligence - Classifies green revenue into 130 micro sectors across 10 industries for targeted analysis.
• Robust financial modeling - Sophisticated machine learning models built on millions of data points for reliable green revenue estimates.  
• Continuous updates - Athena's AI models continuously integrate new disclosures and refine projections.
• Climate risk analytics - Athena provides a full suite of physical and transition risk analytics for complete risk-opportunity alignment.
• TCFD-aligned reporting - Measures like WAGR offered alongside carbon and climate risk metrics for TCFD reporting in a single platform.
• Portfolio integration - APIs and database exports allow integration with portfolio analysis tools.

15Rock's AI expertise powers Athena's leading green revenue capabilities so investors can future-proof portfolios using comprehensive climate solutions data.

Get in touch today to see a demo of Athena's green revenue analytics!

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