Solactive Invests in Climate Data Start-Up

    Stockholm (NordSIP) – Solactive has announced it is investing in climate data start-up right.based on science, a Frankfurt-based company that provides software allowing clients to measure the contribution of a company or a portfolio to climate change.

    Solactive is an index provider based in Germany. Established in 2007, it provides 3,496 tailor-made and multi-asset class index solutions for ETFs and other index-linked investment products.

    right.based on science was founded in 2016 by Hannah Helmke, its CEO, and Dr Sebastian Müller, its in-house lawyer. The startup’s X-Degree Compatibility (XDC ) tool allows the start-up to measure a company’s individual contribution to global warming and answers the demand for such tools in light of the criteria of the Paris Agreement and upcoming climate stress testing. According to the company, the results from its peer-reviewed XDC Economic Climate Impact Model are easy to interpret in °C. The tool can be used for portfolio and product design as well as for climate reporting and risk management.

    “A coherent and stress-tested model to precisely compute a company’s ecological footprint is a precious asset and of significant importance for our society,” says Steffen Scheuble, CEO at Solactive. “When we first heard of right. based on science, we were fascinated immediately by their model’s outstanding degree of sophistication and its simple and straightforward output. It is astounding to see the share of a company’s contribution to global warming in such a tangible and accurate manner.”

    Although the investment amount was not disclosed, Solactive’s minority stake will speed up the startup’s software development. It’s new ties to Solactive will also allow right.based on science to reach out to Solactive’s wider network within the financial industry. Meanwhile, Solactive emphasised the fact that the minority stake meant that the startup remained independent and able to provide objective and unbiased analyses for its clients.

    “right.’s mission is to increase transparency on climate-related risks and opportunities within the market so that capital can be steered in the right direction,” Hannah Helmke, CEO of right. based on science commented. “With its minority stake, Solactive is a partner that has excited us through its incredible agility, the team’s fresh, entrepreneurial, and tech-focused mindset and its profound financial expertise. We believe that together we can take the XDC Model to the next level and make it a valuable instrument for everyone looking for an open-source standard for climate impact measurement.”

    Image by Adina Voicu from Pixabay

    Filipe Albuquerque
    Filipe Albuquerque
    Filipe is an economist with 8 years of experience in macroeconomic and financial analysis for the Economist Intelligence Unit, the UN World Institute for Development Economic Research, the Stockholm School of Economics and the School of Oriental and African Studies. Filipe holds a MSc in European Political Economy from the LSE and a MSc in Economics from the University of London, where he currently is a PhD candidate.

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