How T-REX and Xpansiv Are Closing the Gap Between ESG and Financing

Sustainable financing is essential to the clean energy transition and to support current climate goals. However, in today’s landscape, many organizations lack effective ESG monitoring software and struggle to understand their ESG performance and how it may be affecting overall portfolio performance. The data that can provide this insight is often onerous to manage, arriving in scarce quantities and across many different formats and file types. 

This will make it difficult to meet 2050’s net zero targets, which call for a 60% increase in renewable energy by 2027 and a 50% reduction in total emissions by 2030. It is essential that forward-thinking companies, who wish to remain successful through the energy transition, take the time to focus on sustainable finance now, establishing regular ESG reporting and best practices with technology infrastructure for sustainable investments like labeled bonds and sustainability-linked loans.

Sustainable finance and support of the energy transition has been a core tenet of T-REX’s platform ever since its founding, and each year we strive to continue innovating in ways that will improve access to ESG data and move that transition forward. This year, we’re proud to announce our integration with Xpansiv’s Universal Project Numbers (UPN) which will drive transparency within the industry and streamline reporting for sustainability-linked finance. On T-REX, lenders and investors will be able to create data-driven sustainability-linked covenants and benchmark ESG data across a wider range of metrics, tracking the real-time results of their investments across the lifecycle of the asset. Further, users will have the ability to analyze and report on ESG metrics alongside financial and operational data, all on one platform.

Xpansiv’s proprietary UPNs were released for licensing in March of this year and provide immutable ESG data, creating a connection from financing through to the leading ESG registries and markets. The UPN is unlike any other tool available to sustainable finance professionals today and will allow for an unprecedented level of transparency into the ESG metrics of sustainable investments, including but not limited to GHG emissions tracking.

Benefits of the Xpansiv UPN

  • Immutable data provenance
  • Tamper-proof record of use of proceeds
  • Privacy of proprietary data
  • Integration with digital measurement, reporting, and verification (dMRV) registry infrastructure
  • Tracking and verifications of environmental performance
  • Automated disclosures
  • Linking to digital bonds

While transparency into ESG data is essential, it’s only half of the equation. Regulatory requirements for emissions reporting continue to evolve, and connections between ESG data and financial infrastructure will be essential. Beyond that, many investors are eager to know how sustainability-focused deals perform in comparison to traditional deals.

By integrating this tracking ability with the extensive capabilities of the T-REX platform, users will now be able to access immutable, standardized ESG data, within an established financial infrastructure built for complex markets, enabling in-depth risk analysis, portfolio monitoring, precise reporting, and investor confidence. 

Capabilities With the T-REX & Xpansiv UPN Integration

  • Structure and dynamically price facilities based on ESG objectives
  • Monitor ESG-related covenants and benchmark performance
  • Conduct stress testing and manage risk at the asset and portfolio level
  • Automate ESG data delivery to T-REX and integrate with enterprise-wide tech stacks including systems for regulatory reporting, risk management, portfolio monitoring, and climate impact measurement

T-REX is committed to supporting innovation for the energy transition and complex finance industry as a whole, improving access to deals and enhancing portfolio management. T-REX looks forward to helping clients enhance measurement and reporting, thus improving investor confidence and capital allocation to the energy transition. Learn more about how you can take advantage of UPNs on T-REX and start utilizing ESG monitoring software.

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