Pathzero

Pathzero operates a climate data platform for financial institutions and companies that manages the full data lifecycle from ingestion through to disclosure. The platform ingests holdings and allocation data from custodians, fund administrators, internal systems and portfolio management platforms for both internally and externally managed funds and direct holdings, reconciling them into a single ledger. It then enriches holdings with climate metrics — emissions across the three GHG Protocol scopes, physical risk indicators and PCAF data-quality scores — and composes the results into consolidated "Reporting Units" with defined ownership percentages that can be exported for client reporting or scenario analysis.

The company's distinguishing asset is the Pathzero Network, a digital disclosure network through which asset owners connect with fund managers to obtain look-through holdings and asset-level emissions and location data directly from the source, rather than relying on sector-based proxy estimates, static private-company databases or one-off spreadsheet campaigns. Fund managers use a tool called Pathzero Navigator to collate holdings data, estimate emissions where gaps exist, review analysis and share results with multiple investors under permissioned controls, retaining ownership of their data. Engagement campaigns typically run around nine months. Pathzero has since added integrations with third-party public markets climate data from S&P Global, MSCI and Morningstar Sustainalytics so that whole-of-portfolio coverage spanning listed and unlisted assets sits in one platform. The platform is positioned around IFRS S2-aligned disclosure, PCAF and GHG Protocol methodologies, and assurance readiness, and the company states it is ISO 27001:2022 certified and SOC 2 Type II compliant.

Founding story

Pathzero began in January 2020 within the Antler Global incubation hub in Sydney, founded by Carl Prins and Charbel Ayoub. Its initial focus was making it simple for any company to quantify its carbon emissions. CEO Carl Prins has said his interest in climate action led him to conclude that measuring and accounting for emissions was the necessary first step to progress, and that the existence of a global protocol for financial institutions to track emissions created an opportunity to build an internationally applicable business.

Business model

Pathzero sells software to financial institutions, primarily asset owners, for managing portfolio climate data, while offering fund managers enterprise-grade risk tooling in exchange for contributing disclosures to the network — described by the company as replacing data extraction with value exchange. The network effect means new investors benefit from disclosures previously requested by other investors. The platform is also designed to interoperate with managers' existing ESG tools and workflows, positioning itself as a standardised transmission layer rather than a replacement for portfolio systems.

Traction

The Pathzero Network reports more than 550 active fund managers, funds representing over $4.5 trillion in assets under management, and climate disclosures on more than 45,000 individual portfolio companies and real assets. At the time of its December 2022 Series A+ announcement the company reported 142 million tonnes of emissions under management, with a stated target of 1 billion tonnes.

Latest developments

Pathzero has announced integration of public markets climate data from S&P Global, MSCI and Morningstar Sustainalytics, extending the platform to whole-of-portfolio coverage across private and public markets, and markets IFRS S2-aligned, assurance-ready reporting outputs.