NEC -
Net Environmental Contribution
Quick description
The NEC is a user-friendly tool that measures the environmental impact (climate, biodiversity, resources) of an economic activity, company or sector to deliver a net contribution value. The indicator attributes a single number calculated on a scale from -100%, for the most damaging activities, to +100% for clear environmental solutions that fulfill the same given function, 0% being the world average.
Designed to inform and empower investment decision makers and corporates, it uses physical data from across the whole value chain to provide a snapshot of an activity’s net environmental contribution and it can be applied at a company, portfolio, index or product/source level.
The NEC metric can be used to:
- Measure Risks and Opportunities
- Implement smart investment strategies
- Engage dialog with investees
- Gain in reporting clarity and transparency
- Demonstrate compliance and achieve certification
Sustainable finance associated use case
Alignment:
- EU Taxonomy: provides complementary analysis and more refined views on EU taxonomy blind spots
Impact:
- Environmental Impact: (Hollistic & relative metric based on physical impact in a life cycle analysis perspective)
- Nature (direct & indirect, Species, Ecosystems)
- Pollution (Air, Land, Water)
- Water (Marine Ecosystems, Freshwater)
- Climate change mitigation
- Circular economy transition
Risk:
- Transition risk: risk and opportunities assessment
Sustainability tools:
- Reporting: See the example of Sycomore AM reporting on its fund Sycomore Europe Eco Solution
- Impact Measurement: Relative metric based on physical impacts in a life cycle analysis perspective
- Sustainability Rating
Credit : This tool has been made in the context of the EquipEx+ ANR-21-ESRE-0036: 
Special thanks to Maria VILLALONGA, Thibaud BARREAU and all other contributors.