Pathzero links climate data across public, private assets

Pathzero has started working with S&P Global Energy, MSCI and Morningstar Sustainalytics on climate data integration for institutional investment portfolios across public and private markets.

The Sydney-based company said the arrangements cover access to datasets that investors use for emissions accounting and climate risk reporting. Pathzero said clients can use the platform to bring together portfolio climate information in one system.

Pathzero positions the work as a step towards "whole-of-portfolio" climate risk management. It said the platform addresses climate data for asset owners and asset managers with holdings across listed securities and private markets.

Reporting focus

The development comes as investment firms prepare for climate-related financial disclosures under IFRS S2 and Australia's AASB S2. Pathzero said institutions also face demands for transition risk and physical risk assessments.

Pathzero said it already works with large Australian superannuation funds and investment managers on financed emissions in private markets. The company said the expanded data access adds public-market coverage from established providers and complements disclosures gathered through its engagement network.

"Until now, asset owners and managers have faced fragmented data across portfolios," said Carl Prins, CEO and Co-Founder, Pathzero.

"Financial institutions don't just need more data - they need data they can trust, contextualised for how portfolios actually work," said Prins.

Integration layer

Pathzero described its system as an integration point between different data sources and portfolio structures. The company said clients can ingest holdings information at fund and asset level and organise it for portfolio analysis and reporting.

"This collaboration means Pathzero becomes the single integration layer through which institutions can consolidate all their climate-related data for analysis and reporting," said Prins.

"By integrating private and public market data, and enabling clients to ingest, organise, and report emissions across their portfolios, Pathzero gives asset owners and managers a single source of truth for a unified, scalable approach to climate risk management," said Prins.

Pathzero said the integrated data remains dynamic across both private and public market holdings. It said users can access information through its tools rather than switching between separate systems.

The company said its reporting approach covers complex investment structures, including funds-of-funds. It said clients can group and analyse emissions across portfolios and prepare outputs for audit and assurance work.

Data partners

Morningstar Sustainalytics described the work as a way for investors to access climate insights across full portfolios.

"We are excited to be working with Pathzero in strengthening the ability of asset owners and managers to access climate insights across their full portfolios," said Michelle Cameron, Morningstar Sustainalytics Commercial Executive.

"By bringing our trusted datasets together, investors can now consolidate both public and private market insights in a way that reflects today's portfolio constructions, and do so with the confidence needed for AASB S2 reporting," said Cameron.

S&P Global Energy framed the relationship as a data distribution arrangement linked to its climate data offering, including Trucost Environmental.

"Trucost Environmental, from the teams of S&P Global Energy, is unparalleled and provides the essential intelligence investors need to make decisions with confidence and clarity," said Ben McKenna, Strategy, Partnerships & Alliances, S&P Global Energy.

"We welcome this data-distribution collaboration with Pathzero and believe through the integration of S&P Global Energy's leading climate data, asset owners can consolidate public and private market insights seamlessly, eliminate fragmented reporting, and meet AASB S2 and ISSB requirements with greater accuracy and efficiency," said McKenna.

Pathzero also named MSCI as a data provider in the collaboration. The company did not include an executive quote from MSCI in its announcement.

Market backdrop

Pathzero pointed to a broader shift in market attention from climate policy to financial impacts on assets. It cited rising physical climate risk and growing costs from natural disasters.

The company said natural disasters caused more than USD $400 billion in global economic losses in 2024. It also cited the Australian government's National Climate Risk Assessment, which projects annual disaster recovery costs of AUD $40 billion by 2050 under a 1.5-degree warming scenario.

Pathzero also flagged transition risk, including mechanisms such as Australia's Safeguard Mechanism and carbon pricing schemes, alongside investor expectations. The company said investment firms increasingly treat transition and physical risks as portfolio considerations, alongside regulatory reporting.

Pathzero said it will continue building out portfolio tools for financed emissions and climate exposure using the combined public and private market datasets.