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Disclosures

Acumen Science-Based Targets

1. Emissions Inventory

Acumen underwent an extensive emissions inventory exercise to assess its greenhouse gas (GHG) emissions and align with the Science Based Targets initiative (SBTi). This inventory establishes a baseline for how we might assess any reduction targets, consistent with the Paris Agreement’s objective of limiting global temperature rise to 1.5°C. 

Scope and Methodology

Our emissions inventory follows the SBTi framework and the Greenhouse Gas Protocol, categorizing emissions into the following scopes:

  • Scope 1 (Direct Emissions): Emissions from sources owned or controlled by the firm, including fuel combustion in company-operated facilities and vehicles.
  • Scope 2 (Indirect Emissions from Energy Use): Emissions resulting from purchased electricity, steam, heating, and cooling consumed by our offices and operational sites.
  • Scope 3 (Financed Emissions and Other Indirect Emissions): Most of our emissions stem from financed activities, including equity, debt, and managed assets. Other Scope 3 sources include employee commuting, business travel, and supply chain activities. 

Scope 3 emissions from our financed activities have been calculated using the average-data method, which involves using revenue data combined with EEIO data, to estimate the scope 1 and 2 emission emissions of our material portfolio companies, and attributing emissions based upon our ownership stakes in such companies.  Material companies are defined as those with annual revenue exceeding $5 million. 

We conducted a thorough review of internal energy resources, electricity usage across regional offices, travel records, and portfolio financial information. Additionally, we consulted global scientific research to ensure alignment with industry best practices and calculation methodologies.

Key Findings

Total reported emissions: 8,254 tons CO2.

Scope 1 and 2 emissions: 37 tons CO2, primarily from office energy consumption.

Scope 3 emissions: 8,217 tons CO2, with 95% of emissions stemming from material portfolio investments.

Portfolio emissions concentration:  Acumen’s portfolio consists mainly of early-stage companies with non-GHG-intensive business models.  A majority of emissions attributed to our material portfolio investments are attributed to four companies.  

2. Scope 1, 2, and 3 SBTi Targets

The Science Based Targets initiative defines science based targets (SBTs) as voluntary targets, as follows:

  • Medium term science-based targets are 5-10 year (i.e., by around 2030) GHG mitigation targets in line with 1.5°C pathways.
  • Long-term science-based targets indicate how much a company must reduce value chain emissions to align with reaching net-zero at the global or sector level in eligible 1.5°C pathways by 2050 or sooner.  Not all companies are anticipated to be able to achieve complete decarbonization, and may target reducing emissions by at least 90% through their long-term science-based targets.
  • Neutralization is a measure a company may take to remove carbon from the atmosphere and permanently store it, counterbalancing the impact of emissions that remain unabated after the long-term science-based target is achieved. These residual emissions must be neutralized to claim to reach net-zero emissions.

We have been requested by an Acumen partner to publish our SBTs for two years, in line with the above.  We have published our baseline inventory for fiscal year 2023; there is a timing lag for publication given the timing of our annual audit, data collection and data analysis.  We pledge to publish an updated inventory and the extent to which reductions have been achieved for 2024.

Scope 1 (Direct Emissions) Target

Our calculated scope 1 emissions include direct GHG emissions from owned or controlled sources, such as company-owned vehicles and on-site fuel combustion. Acumen’s emissions may be driven by generators in one of our global regional offices.

Milestone:  We anticipate limited to no achievement of reduction of scope 1 emissions for 2024, though will consider opportunities for cleaner energy sources in our office operations, where practicable.

Scope 2 (Indirect Energy Emissions) Target

Our calculated scope 2 emissions result from purchased electricity, steam, heating, and cooling for company operations. Acumen leases offices in various regions globally where we purchase electricity from the national grid.

Milestone:  We anticipate limited to no achievement of reduction of scope 2 emissions for 2024, though Acumen has sought and continues to seek energy efficient buildings for office use, where available and practicable.

Scope 3 (Financed Emissions) Target

Our calculated scope 3 emissions include indirect emissions from our investment portfolio (financed emissions) and other indirect sources such as business travel, employee commuting, and purchased goods/services. 

Acumen’s portfolio consists mainly of early-stage companies with non-GHG-intensive business models.  Additionally, some investments contribute to GHG mitigation through renewable energy components or climate-friendly practices. The majority of our attributed scope 3 emissions are from material companies in which we have an ownership stake over 10 percent. We do not have controlling stakes or governance control in our material portfolio companies. 

Milestone:  We continue to monitor our portfolio companies, to understand and help to support their SBTs, if any; however, given our minority stakes, we are not calculating an SBT through the portfolio coverage approach.  Instead, we aim for a 20% reduction milestone through fiscal year 2025 for our scope 3 emissions through an absolute approach, based on exits from one or more from material companies in which we have an ownership stake over 10 percent.

References:

  1. Acumen internal data on Scope 1, 2 and 3 emissions
  2. SBTi Corporate Near-Term Criteria
  3. SBTi Corporate Near-Term Tool
  4. SBTi Corporate Net-Zero Standard Criteria
  5. SBTi Corporate Net-Zero Standard
  6. Corporate Net-Zero tool

Challenges:

Data Availability & Accuracy: Some data sets were not complete or reliable data (i.e. errors in electricity consumption in electricity bills, missing electricity data, missing or unreliable data on flights)