IV. Final Reflections

Stage Analysis and Document Associated Procedures

While the GHG impact formula is simple, it requires investors to perform iterative analysis that serves efficiency, comprehensiveness, and the practical realities of an investment down selection process. Frame recommends investors detail each step of their procedures. For example, where investors are not comprehensively quantifying emissions associated with the solution and incumbent, they should clarify steps taken, such as materiality assessment, to ensure that qualitative forms of analysis are applied where quantification is difficult or unreliable.

Deepen Analysis to Match Amount and Reliability of Data

The goal of analysis is to produce the most accurate analysis you can based on the reliable data you have. Early-stage solutions tend to rely on higher-level estimates of both unit impact and volumes due to limited data. As more detailed information becomes available, analysts should shift towards more thorough analysis. The same principles apply to assessment of unit impact and volumes.

Use Quantification As A Narrative Tool

Quantification should serve a strategic purpose which, in the case of Frame, is making an investment decision. The goal is not to amass data for its own sake but to reveal a true story that can guide actions. Too much data can obscure the critical insights needed for effective decision-making. Investors should produce clear narratives to contextualize data, ensure that the data serves a clear purpose, and communicate the significance of the findings.

Think Creatively About The Future

Trends, in unit impact and volumes, should be viewed as exercises in creative thinking rather than predictions. They visualize and explore the implications of possible futures. This helps us anticipate challenges and opportunities that may not be immediately apparent. 

Avoid Interpretations That Incentivize Bad Decisions

Quantification methods incentivize or disincentivize different decisions. For example, if we assume a net zero grid in 2050, and accordingly assign less GHG impact to solutions that reduce electricity demand, are we in fact stymieing a promising and effective means of reducing GHG emissions? 

Reduced unit impact overtime should not necessarily deter investors from making an investment. A single investment may be one of many unquantifiable or indirect actions that contributed to ecosystem change that would not have occurred without all of them. Think about the potential long-term consequences of data on behaviors and how your interpretation of the data could work against the reality you actually want.

Contribute to Ongoing Learning

There is no perfect analysis, especially when attempting to forecast into the future with limited access to data. However, it is clear that through knowledge sharing and community we are improving our investment strategies together. We invite those who wish to both learn and lead the next chapter of Project Frame’s work to consider contributing to future case studies or refining our ongoing library of supplemental materials.