Fexco and Avocet partner to launch Platform for Analyzing Carbon Emissions (PACE)

Ireland: Fexco, the Irish Financial and Business Solutions Provider, has teamed up with Avocet Risk Management Ltd., the aviation risk management experts, to launch PACE, the new benchmark for analyzing actual and predicted CO₂ emissions.

Starting in the aviation sector, PACE is a platform solution for aviation industry stakeholders which provides accurate carbon emissions analysis for investors, financiers and aircraft owners to measure and forecast emissions from their assets and provide TCFD (Task Force on Climate Related Financial Disclosures) ‘reporting as a service’.

PACE automatically compiles actual flight data and applies a blend of aircraft data and industry standard methods to provide consistent, comparable and reliable information for aircraft portfolio modelling, investor relations and regulatory reporting requirements.

It is the first platform to combine these capabilities with historic and predictive analysis, emission target forecasting and real time exception event notifications, including ETS credit risk exposures and sanctioned territory infringement alerts.

The powerful forecasting engine contained within PACE gives the user the ability to determine and directly control emissions reduction pathways, science-based target parameters and the KPIs necessary for the provision of sustainability linked and transition linked finance.

PACE will enable the aviation sector to make ‘like for like’ comparisons between airlines and aircraft. The platform will enable aircraft owners to identify the most efficient aircraft assets and operators and incentivize others to identify opportunities for improvement. The aviation sector should strive for end-to-end emissions transparency from regulator to lessor and airline to passenger while leading the way on new global emissions protocols such as the European Union’s “Fit-for-55” policy initiative.

“PACE is the first data and analytical solution for the aviation sector that delivers sustainability linked analysis and translates carbon footprint for all stakeholders into financial and climate risk. All businesses have a societal, legal and collective responsibility to measure. manage and disclose the climate related risks derived from the asset portfolios in which they invest. PACE takes multiple inputs and leverages AI technology to automatically measure the carbon for all stakeholders and support sustainability-linked financing opportunities for the businesses that use their aircraft most efficiently,” said John Nozell, Chairman and Director of Avocet Risk Management Ltd.

New sustainability linked finance/leasing products and transition linked finance/leasing products are starting to emerge in European markets, with global adoption likely. These structures will require new insights, procedures and the application of accurate, reliable and comparable data analytics.

Aviation emissions have more than doubled in the last 20 years and the sector is responsible for an Increasing percentage of anthropogenic emissions. Whilst the aviation industry recognizes its environmental responsibility and is taking steps to address its carbon footprint, emissions are forecast to exceed pre-Covid levels as airlines build back capacity. This is in sharp contrast to many other industries that are now rapidly decarbonizing. This brings particular focus upon the aviation industry.

Fexco has 40 years’ experience in developing & operating complex value exchange platforms including the Global Aircraft Trading System (GATS) in aviation. Avocet has become a recognized leader in aviation related carbon analysis and compliance, has significant experience in aviation risk management and provides consultancy services to many of the largest entities in the sector today.

 Shane Kavanagh, Group Marketing Director of Fexco, said: “Fexco has recognized the importance of ESG related technology to various industries across the globe and we are committed to building sustainability linked businesses to support those determined to evolve to meet the challenges of climate change. The launch of PACE represents the practical application of that ambition and is a game-changing step in the race to deliver true carbon transparency and efficiency from fleet to seat for aviation.”

At the heart of the platform is an AI engine that allows all stakeholders in aviation access to real-time analytics, accurate reporting based on industry-standard data, and, critically, predictive capabilities. This set of tools has practical value for stakeholders involved in the leasing and financing of aviation fleets that will soon require the ability to accurately measure and manage their assets emissions in accordance with industry standards and regulations.

PACE is built to exceed expectations in aviation delivering full sector carbon transparency from fleet management to flyer with unparalleled data clarity and accuracy.”