Human activities, like emissions and deforestation, affect many Earth system processes like landcover, waterflow, and temperature – three important planetary boundaries. These changes ripple through the Earth system because of interactions between the individual Earth system processes.
Mitigating severe systemic risks related to climate change and nature depletion hinges on our ability to ensure we rapidly reduce the harm being done to our natural carbon sinks.
The Earth System Impact (ESI) score is a tool that can allow investors to assess the planetary scale impact of an individual company or asset, and aggregate it to portfolio level. It is systemic, context sensitive and science based and can be valuable for guiding improved decision-making.
Citation: Crona, B., G.Parlato, S. Lade, I. Fetzer, and V. Maus. 2023. ESI - A Tool to better capture corporate and investment impacts on the Earth system. Global Economic Dynamics and the Biosphere, Royal Swedish Academy of Sciences.