FAQ

Climate Tracker Initiative (CTI) is an innovative AI-powered software company dedicated to transforming the ESG data market. Our mission is to seamlessly localize and extract ESG data from corporate reports across any language and format. By leveraging cutting-edge technology, we aim to deliver the most comprehensive, accurate, and accessible ESG insights, to ensure accurate and informed decisions.

CTI’s AI-driven and automated approach offers unparalleled benefits including superior accuracy, significant cost savings, and exceptional scalability. Most data vendors sell innaccurate data and solely from listed companies. By automating data extraction, we eliminate the inconsistencies and high labor costs associated with manual methods. Our solution ensures accurate data that is accessible on-demand, allowing businesses to focus on analysis and decision-making rather than data collection.

CTI employs sophisticated AI algorithms and machine learning techniques that are continuously refined to ensure the highest levels of accuracy. Each data point extracted undergoes rigorous quality checks and validation processes. By contextualizing data with supplementary insights, we ensure that the information we provide is not only accurate but also highly reliable and actionable.

CTI stands out with its unique AI-focused approach to data collection, which guarantees superior data quality, enhanced scalability, and fewer restrictions compared to competitors who often rely on manual methods. Our dedicated focus on ESG data ensures that we provide highly specialized insights that are crucial for businesses committed to sustainability and regulatory compliance.

Without pre-processing the PDF, ChatGPT (or similar LLMs) will likely misinterpret unstructured data (such as ESG data in PDFs). This leads to inaccuracies, especially with complex formats or inconsistent reporting.

At CTI, we use multiple layers of data pre-processing steps to ensure that the data is clean and structured before reaching ChatGPT, which serves as our last stop before data post-processing (such as quality controls). All this to ensure the accuracy and reliability of the data.

Currently, No.

Results and ambitions are two completely different things. The planet do not need more ambitions, associations, memberships and prices salutiong climate ambitions. We need action and results!

There is also underlying facts and statistics regarding our decision.

• Reports suggesting a record number of companies committing to science-based climate targets, the actual progress appears less encouraging. Boston Consulting Group’s finding that only 14% of companies have managed to align their carbon reduction efforts with their ambitions over the past five years. (source)
• Despite the Science-Based Targets initiative (SBTi) reporting a significant uptake in companies setting science-based climate targets, with over 2,000 companies making commitments, the real impact of these commitments on global emissions reduction remains to be seen. The initiative highlights that nearly 80% of the targets approved in 2021 were aligned with a 1.5°C warming limit and that companies with these targets have been more successful in reducing emissions. However, the global picture shows a vast gap between commitment and actual, meaningful reduction in carbon emissions. (source)​
• Carbon offsetts – It is great that companies offset their emissions. Major issue with this is that these offsets vary in quality and delivery. Simply, one ton of offsets in one project does not correlate to the same amount of ton offset in another projects.
• ESG ratings are often inaccurate and biased, once again not linked to acctual reductions or emissions. On top of this, usually only applicable to the largest companies around the globe.

And some quotes:

”When examining the methodology behind MSCI ESG ratings, Bloomberg Businessweek found that, instead of measuring the impact a company has on the Earth and society, ESG ratings measure the risk the world poses to the company. For instance, despite McDonalds’s producing 54 million tons of CO2 emissions in 2019, MSCI upgraded its rating after determining climate change did not pose a risk to the firm’s profits.”

”Various ESG ratings providers have differing methodologies, and this can be reflected in the low levels of correlation between the ratings they provide. MIT research found the correlation between six major ESG ratings agencies, including MSCI, Moody’s and Refinitiv, to be 0.61 (with 1.00 representing a perfect correlation and -1.00 a perfect negative correlation). In comparison, the three largest credit ratings agencies are correlated between 0.94-0.96 on their debt ratings.”

(source: ”https://www.maddyness.com/uk/2022/02/14/the-problem-with-esg-scores/”

ESAP (European Single Access Point) is a centralized platform that likely will be launched by the EU to provide access to standardized ESG data from EU-based companies. While ESAP focuses on regulated ESG disclosures within Europe, our service specializes in extracting unstructured and unstandardized ESG data globally besides also including ESAP data once we get there. We add value by offering insights from companies and regions not covered by ESAP and by handling complex, non-standardized reports that require advanced extraction capabilities.

While ESAP centralizes standardized data from EU companies, we provide a global solution that captures ESG data from non-EU markets and unstructured reports. Many companies, especially outside Europe, don’t follow strict reporting formats, and our AI-driven technology extracts data from any format or language. This allows clients to access a broader range of ESG information, including voluntary disclosures and data not covered by ESAP.

No, our services remain crucial. ESAP primarily focuses on standardized EU data, while many companies globally continue to report in unstructured formats. Additionally, our ability to work with non-EU companies and extract voluntary ESG data means that we complement ESAP rather than compete with it. We offer deeper, more comprehensive coverage, especially for investors and businesses seeking insights beyond Europe.