Malte Hessenius

Malte has been a part of Climate & Company since the early days, in 2019. At Climate & Company, Malte is a Senior Analyst on “biodiversity”, “transition” and “data” – and has led most of C&C’s projects on data and implementation projects.

Malte has for example lead Climate & Company’s contribution to a project on Tackling Biodiversity Risks , a collaboration with WWF, and has worked extensively on the conceptualisation of biodiversity-related risks. In 2024, he has been leading the methodology development to assess deforestation risks in global portfolios to make deforestation due diligence work in practice – in a unique collaboration with Global Canopy and Swedish Pension Fund AP2. Currently, Malte is also leading Climate & Company’s work on transition finance.

Malte holds a Master’s degree in Economics from the Humboldt University of Berlin. Before joining C&C, Malte has worked at the climate policy department of the German Institute for Economic Research (DIW Berlin). He also interned at UNDP in Istanbul to support the EU4Climate project to assist the EU Eastern Partnership countries in implementing the Paris Climate Agreement.

His strong background in economics and extensive experience working with macro and micro-level data, including hands-on Python programming skills, make him a valuable asset to Climate & Company. Now and then, Malte works on his handball career – with moderate success.

Latest released papers

Making Deforestation Due Diligence Work in Practice

July 2, 2024 - Various open-source providers make extensive data on companies' actions on deforestation available. Yet, financial institutions report that it remains challenging and resource-intensive for them to identify and mitigate deforestation risks in investment portfolios. The new practical guide responds to this challenge, as the financial sector is increasingly committed to addressing its role in deforestation, a major driver of biodiversity loss and climate change. It is ready for implementation as the guidelines are complemented by an online code repository with a (limited) open-source dataset that financial institutions can use and adapt.Various open-source providers make extensive data on companies' actions on deforestation available. Yet, financial institutions report that it remains challenging and resource-intensive for them to identify and mitigate deforestation risks in investment portfolios. The new practical guide responds to this challenge, as the financial sector is increasingly committed to addressing its role in deforestation, a major driver of biodiversity loss and climate change. It is ready for implementation as the guidelines are complemented by an online code repository with a (limited) open-source dataset that financial institutions can use and adapt. The methodology is unique because it can be applied to…

Transition Products: Conceptual Clarity & Implementation Guidance

June 24, 2024 - White Paper on how to conceptualise transition finance products.This white paper is part of a wider discussion about new regulatory efforts in the EU, UK and beyond to categorise financial products with sustainability features. This report focuses on the category of 'transition products' in public equity markets. By reviewing existing proposals for transition products, we identify their key characteristics and potential criteria. As a next step, we illustrate the application of the potential criteria using a global universe of listed companies to provide evidence-based feedback to decision-makers. Jointly written with Eric Pruessner from Advanced Impact Research, you can read it here below: [dflip id="3217" ][/dflip]

How Practices Like SBTs Drive Corporates’ Climate Transition

April 17, 2024 - Embedded in the context of transition finance and our ClimLabels research project, this empirical research paper explores the effectiveness of sustainable management practices in reducing corporate carbon emissions.Authors: Niklas Gehrke, Malte Hessenius, Raphael Tietmeyer Publication date: April 2023 Embedded in the context of transition finance and our ClimLabels research project, this empirical research paper explores the effectiveness of sustainable management practices in reducing corporate carbon emissions. Using a global dataset thousands of publicly listed firms from 2010 to 2022, the study assesses the impact of various practices, including science-based targets (SBTs), executive compensation linked to climate goals, and green expenditure, on (future) corporate carbon performance. One of the key findings is that firms with science-based targets see a significant reduction in emissions, while other management practices show…

Review of the SFDR – GHG reduction targets

July 11, 2023 - This policy brief highlights our main messages regarding the review of the Disclosure Delegated Regulation of the Sustainable Finance Disclosure Regulation (SFDR), currently being drafted by the European Supervisory Authorities (ESAs). This review focuses on the part “Amendments regarding greenhouse gas (GHG) emissions reduction targets”.This policy brief highlights our main messages regarding the review of the Disclosure Delegated Regulation of the Sustainable Finance Disclosure Regulation (SFDR), currently being drafted by the European Supervisory Authorities (ESAs). This review focuses on the part “Amendments regarding greenhouse gas (GHG) emissions reduction targets”. [dflip id="3180" ][/dflip]

Public Consultation: Feedback on the Draft Taxonomy Delegated Act

May 3, 2023 - Read about the key issues with the European Commission's Draft Taxonomy Delegated Act in this publication. The authors focus on biodiversity concerns, including high-impact sectors left out of the draft, insufficiently addressed supply chain impacts, and the need to remove biodiversity offsets. They also raise concerns about specific activities in the transport sector and the weakening of Appendix C.What's in it? In this publication, we provide several messages on what is, and what is not, in the European Commission’s Draft Taxonomy Delegated Act. Building on our continuous involvement in Taxonomy regarding biodiversity (through the Platform on Sustainable Finance and consultations) our first three messages highlight that: high-impact sectors are left out, despite technical screening criteria already being available for adoption. supply chains are still insufficiently addressed and create problems for policy coherence, biodiversity offsets need to be removed. Additionally, we share our concerns regarding the inland passenger/freight water transport and aviation activities, and the weakening of Appendix C.…

Investor Impact in Transition Finance: Learning from Ecolabels

February 21, 2023 - Forward-looking information are key: How Ecolabels can channel more (retail) investments into transition finance.This publication is a first overview paper, originating from our ClimLabels project. This paper sheds light on the evolving transition finance landscape with a particular focus on Ecolabels and what we can learn from them to construct transition finance products. This paper builds partially on our input on the UK's proposed transition label. What constitutes the transition finance landscape? Massive investments from the private and public sector, as well as a supporting financing framework, are needed to reach net zero targets. While there has been a surge in interest in investments that are currently sustainable (such as renewable energy investments),…

Remarks on UK’s proposed transition investment label

January 26, 2023 - Our response to the UK Consultation Paper 22/20 - Sustainability Disclosure Requirements and Investment LabelsOur response to the UK Consultation Paper 22/20 - Sustainability Disclosure Requirements and Investment Labels The UK Financial Conduct Authority (FCA) has proposed three sustainable investment labels (i.e., sustainable focus, sustainable improvers, sustainable impact) in the form of a consultation paper (link). Our response to the consultation builds on research originating from our ClimLabels project, financed by the German Ministry of Education and Research (BMBF). The project analyses transition labels in climate finance. Our technical input therefore focuses on the "Sustainable Improvers" label, its qualifying criteria (in particular Question 9), and how (retail) investment can support Paris-aligned transition pathways and…

Tackling Biodiversity Risk – A biodiversity risk assessment guide for companies and financial institutions

January 19, 2023 - A free online tool accompanied by two WWF and Climate & Company reports that demonstrate how to make a biodiversity risk assessment work at scale.On January 16, 2023, WWF launched its WWF Risk Filter Suite at the World Economic Forum - incl. the brand-new Biodiversity Risk Filter - a free online tool enabling companies and financial institutions to analyse their biodiversity risks. The Biodiversity Risk Filter is accompanied by two reports to which we contributed to: 📃 The main WWF and Climate & Company report below: [dflip id="3136" ][/dflip] The report summarises the underlying methodology briefly and provides recommendations to companies, financial institutions, policy makers, data and tool providers as well as academia. It also contains a case study by Climate & Company which…

Report: When Finance Talks Nature

December 9, 2022 - This report reveals that taxonomies worldwide fail to take into account nature and biodiversity and its services.NEW REPORT: “When Finance Talks Nature – Creating a common language for ambitious and nature-positive sustainable finance taxonomies by aligning common design features and integrating nature-related scenario analysis” (Commissioned by WWF) What's in it? In this report, we reveal that while a growing number of countries is developing sustainable finance taxonomies, the vast majority fails to adequately address biodiversity or nature loss. This is a crucial shortcoming because over half of the world's GDP - $44 trillion - is moderately or highly dependent on nature and its services. A rapid and substantial shift in capital is necessary to prevent irreversible…

Key actions to safeguard against deforestation in the EU Taxonomy

November 24, 2022 - This paper sets out key actions to better safeguard against deforestation in the EU Taxonomy, building on the key findings of our scrutiny of the Taxo4 report from the EU Platform on Sustainable Finance.This paper sets out key actions to better safeguard against deforestation in the EU Taxonomy, building on the key findings of our scrutiny of the Taxo4 report (Technical screening criteria of the EU Taxonomy's remaining 4 environmental objectives by the EU Platform on Sustainable Finance). Deforestation is an important threat to the EU Taxonomy's environmental objectives, not only as a direct result of certain economic activities (such as agriculture, farming, mining or construction), but also because many sectors and industries are (indirectly) responsible for deforestation through forest-risk commodities in their supply chains. The EU Taxonomy is structured along different economic…

Policy Brief: Supply Chains in the Spotlight – The role of supply chain (disclosure) regulations

March 31, 2022 - Most of the negative environmental impacts resulting from EU manufacturing and retail take place in the supply chain. Nevertheless, transparency on the supply chain, which helps to identify risks and opportunities and reduces market inefficiencies, remains low.Most of the negative environmental impacts resulting from EU manufacturing and retail take place in the supply chain. Nevertheless, transparency on the supply chain, which helps to identify risks and opportunities and reduces market inefficiencies, remains low. To tackle this issue, the European Commission proposed the Corporate Sustainability Due Diligence Directive to enhance due diligence actions and transparency along the supply chain. Moreover, the Regulation of Deforestation-free Products shall ban deforestation-linked products from the EU market. In this analysis, we demonstrate that the current availability of supply chain data is limited. Moreover, we examine the scope of the proposed Corporate…

Germany: On the way to a leading sustainable finance hub?

May 5, 2021 - Germany adopted its first ever Sustainable Finance Strategy. This is a short and timely commentary.Today, Germany adopted its first ever Sustainable Finance Strategy. It is a major step to activate the central role of the financial sector in achieving the goals of the Paris Agreement and the Sustainable Development Goals (SDGs) and toward becoming a key player in shaping the sustainable financial discourse in the EU and worldwide. Climate & Company welcomes the ambitious plan. The 26 individual measures focus on increasing transparency for non-financial information, better risk management, advocate a European approach and international cooperation and address federal funding instruments. [dflip id="3062" ][/dflip]

Applying the EU Taxonomy: Lessons from the Front-line

October 28, 2020 - Report: The EU Taxonomy should always be applied to identify green investments in the EU’s next long-term budget and recovery package.The EU Taxonomy should always be applied to identify green investments in the EU’s next long-term budget and recovery package, according to our new report under the lead of Climate & Strategy launched on October 28. [dflip id="3054" ][/dflip]

Delivering the Green Deal: Slide deck for the MFF Hub

September 20, 2020 - This slide deck provides arguments for an operation of the DNSH principle, the Taxonomy as a science-based monitoring tool and integrated governance.This slide deck was created by Climate & Company as part of the joint project “Advocacy and analysis for contributing to a strong role of the German EU Presidency in achieving an ambitious role for the EU MFF and other instruments to support a green recovery and mobilise sustainable finance” with the Frankfurt School of Finance & Management and Germanwatch, financed by the European Climate Foundation. The slide deck provides arguments for an operation of the DNSH principle, the Taxonomy as a science-based monitoring tool integrated governance. [dflip id="3049" ][/dflip]

The 1.85 trillion € EU budget and its alignment with the climate targets

July 17, 2020 - This report reviews whether the proposed EU budget and recovery fund live up to their promise. Do they contribute to achieving the objectives of the EU Green Deal? Climate & Company was mandated by Agora Energiewende to conduct a critical review of the potential contribution of the European Commission (COM) proposal (27 May 2020) for an EU Recovery and Resilience Programme and a new Multiannual Financial Framework (MFF) to achieving the objectives of the Green Deal and the 2030 and 2050 climate targets. In this analysis we wanted to develop a deep understanding about the role of the EU recovery package and the MFF in boosting a green recovery after the 2020 Covid-19 crisis. Whereas Agora Energiewende’s report “Recovering Better! Climate-safeguards for the proposed EU’s 1.85 trillion Euro…

EU Ecolabel for Financial Products

June 26, 2020 - In this study, a first large-scale test of the draft EU Ecolabel criterion I was conducted to support the work of the European Commission services.In this study, a first large-scale test of the draft EU Ecolabel criterion, we were contracted to support the work of the European Commission services. Established in 1992, the EU Ecolabel is a symbol of environmental excellence awarded to products and services that meet environmental standards throughout their life cycle and provides guidance to companies on environmental best practices. Action 2.3 of the action plan on sustainable finance tasked the Commission with exploring the application of the EU Ecolabel framework to certain retail financial products including PRIIPs. The objective is to allow retail investors concerned with the environmental impact of their investment…

Report: Identifying investment needs and gaps for the 2030 climate & energy targets

January 15, 2019 - This report provides a review of existing models and studies.This report addresses the central question “How to identify and assess the investment needs and gaps (INGA) for the climate and energy transition?” by providing a review of existing models and studies. [dflip id="3026" ][/dflip]

Slide Deck: Assessing investment needs and gaps for the 2030 climate & energy targets

- A presentation to strengthen the skills of the public sector to address the investment challenge of meeting 2030 energy and climate targets.The outcome of this presentation was to strengthen the skills of the public sector actors and operators of public financial support schemes to address the investment challenge of meeting 2030 energy and climate targets. [dflip id="3069" ][/dflip]