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Regulators in the United States of America, the European Union, Singapore, Japan, and elsewhere are now requiring publicly-traded companies to publish specific disclosures about their carbon footprints, including specific carbon data regarding their supply chains. Many of these so-called Scope Three carbon emissions data are difficult to access and quantify, and artificial intelligence can improve the ability of corporations to satisfy their regulatory reporting requirements.
Managers, promoters, and marketers of carbon projects utilize artificial intelligence to best comprehend the outcomes of their carbon initiatives, including the amount of carbon reduction and sequestration actually taking place. AI is particularly useful in environments where carbon measurement is challenging. Developers of carbon projects also benefit from AI when trying to ascertain price discovery for the carbon assets they produce, prior to offering them for sale.
Investors, investment managers, and other buy-side institutional market participants incorporate artificial intelligence for price discovery purposes. This includes determining valuations of carbon assets based on complex data sets that extend beyond the immediate quantifiable impact of associated carbon reduction. As carbon assets become more institutionalized through the tradeable funds and derivatives markets, AI’s importance will become more critical for buy-side participants.
Banks, financiers, and other sell-side financial institutions deploy artificial intelligence to optimize the management of carbon assets on their balance sheets. This includes marking-to-market these assets for valuation purposes, a process that requires detailed analyses of third-party carbon transactions and assets. Additionally, sell-side financial institutions incorporate AI to enhance their management of the market risks associated with complex carbon assets.
Our artificial intelligence solutions add tremendous value to companies looking to enhance their transparency and accountability. Our AI technologies enhance the ability of carbon project developers to qualify and quantify their carbon reduction activities. Moreover, banks and other financial market participants gain more certainty regarding value and price discovery by using AI to analyze data.
