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CLIMATE-edGE: Climate Leadership, Innovation, Machine Learning, and Analytics for Transformational Evaluation of the Green Economy

Project description

Measuring the private sector’s climate commitments and actions

The private sector has enormous capacity for climate investment and innovation, but companies also produce a large share of carbon emissions. A major challenge is the gap between what firms promise on climate and what they actually deliver. Greater transparency in corporate climate reporting is essential for real progress. The ERC-funded CLIMATE-edGE project addresses this by developing an extensive database covering 35 major economies and leveraging machine-learning tools to address the following questions: under what conditions do corporate climate commitments translate into measurable action? Which companies are truly walking the climate talk? The research will help make climate regulations more effective and help drive climate-aligned investments as well as private-sector climate innovations.

Objective

Proposal Summary:
The private sector plays a crucial yet complex role in the climate transition. While responsible for a significant portion of global greenhouse gas emissions, it also holds vast investment capital and innovative potential. CLIMATE-edGE will address a critical question: Under what conditions do private sector climate commitments translate into measurable actions, and what factors determine whether firms and sectors are effectively aligning their climate promises with actual performance? By examining publicly traded firms in the EU/EEA, the UK, and the US, the research will uncover complex relationships between climate commitments (climate talk) and climate performance (climate walk), in turn reflecting on the impact of regulatoryThe private sector plays a crucial yet complex role in the climate transition. While responsible for a significant portion of global greenhouse gas emissions, it also holds vast investment capital and innovative potential. CLIMATE-edGE will address a critical question: Under what conditions do private sector climate commitments translate into measurable actions, and what factors determine whether firms and sectors are effectively aligning their climate promises with actual performance? By examining publicly traded firms in the EU/EEA, the UK, and the US, the research will uncover complex relationships between climate commitments (climate talk) and climate performance (climate walk), in turn reflecting on the impact of regulatory measures aimed at advancing climate efforts in the green economy. This project will break from traditional approaches by developing a novel database which will contain the full universe of climate commitment and performance data; it will then apply data transformation techniques to enhance interoperability of these data and, finally, it will conduct both advanced econometric and machine-learning analyses to uncover hitherto hidden and latent patterns in the private sector’s climate talk-walk efforts.

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(opens in new window) ERC-2025-STG

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Host institution

LUISS LIBERA UNIVERSITA INTERNAZIONALE DEGLI STUDI SOCIALI GUIDO CARLI
Net EU contribution

Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.

€ 1 434 800,00
Address
VIALE POLA 12
00198 Roma
Italy

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Region
Centro (IT) Lazio Roma
Activity type
Higher or Secondary Education Establishments
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Total cost

The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.

€ 1 434 800,00

Beneficiaries (1)

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