Foreword

Global investment in climate finance has been on the decline since its peak in 2022 despite the increasing threat that climate instability poses to our lives, communities, and businesses.

Energy majors are shifting away from cleantech, a trend likely to be further exacerbated by shifting political landscapes.¹,²

Over my years supporting Project Frame, it has become evident that while many participants join out of a drive to secure a livable climate, the majority see greenhouse gas (GHG) impact analysis as key to their portfolio success. In our most recent survey, over 90 percent of respondents reported seeking above-market rate returns and indicated that aside from climate concerns, their primary motivator was firm competitiveness. It has also been my experience that limited partners and growth equity are becoming increasingly aware of the need for GHG impact analysis to mitigate further risk and exposure to their existing assets. Even with these trends, investment isn’t transitioning fast enough to 

reach emissions reduction targets in time to avert significant harm within our lifetime. As climate disasters become more frequent and intense, forward-looking emissions assessment will be essential to remain relevant amidst evolving market demands in our new climate reality. 

In response, Project Frame has grown to over 900 participants within three years, representing more than 360 firms with $670.1 billion in venture capital and private equity assets under management. The 2023 methodology has been viewed more than 7,500 times, including over 1,200 downloads. Powered by Prime Coalition’s philanthropic support and volunteer participation, the rapid increase in enthusiasm highlights investors’ demand for actionable approaches to assessing GHG impact. 

This is further exemplified by Project Frame’s recognition from Ceres, Global Financial Alliance for Net Zero, Global Impact Investing Network, World Business Council for Sustainable Development, and most recently, the Government of Japan. Looking forward, we are encouraged to see Project Frame’s learnings embedded into emissions impact assessment tools like Climate Point, CRANE, Koi, and MoreScope, while we continue to iterate improvements within our newest working groups composed of more than 50 investors across 4 continents. 

This latest iteration of the Project Frame methodology—along with a new library of accompanying case studies and supplemental materials— demonstrates that GHG impact forecasting and reporting is both an art and a science. Those who practice it are vanguards, competing to find and support necessary solutions for a carbon-constrained future. That is why we have designed the methodology to be practical, built and implemented by investors alongside climate experts who understand the importance of transparency and accountability for industry credibility. 

We extend our deepest gratitude to our philanthropic supporters, steering committee, working groups, community members, and team Prime for their unwavering dedication to our mission and the development of this publication. Now more than ever, it is vital for philanthropy and the private sector to commit to driving the transformation needed for our businesses, communities, and planet to thrive.

Keri Browder
Director of Project Frame & Impact Accountability, Prime Coalition

1. https://www.ctvc.co/32bn-and-30-drop-as-market-hits-pause-in-2023/?ref=ctvc-by-sightline-climate-newsletter
2. https://www.ctvc.co/fuel-disclosure-from-energy-majors-earnings-221/?ref=ctvc-by-sightline-climate-newsletter