Traro®

Globally, we need an estimated total of $8.1trillion in investment by 2050 to tackle our triple planetary crisis. Public balance sheets are too thin to finance this, thus demanding 60% to 70% (~$5.6T) of this capital to come from private capital. To enable impact investing from the private sector to accelerate with the urgency and scale of action required, better tools are needed to help direct capital to opportunities.

Traro®, a platform developed by Gordian Knot Strategies (GKS), is the culmination of years of experience in bridging the gap between impact investors and climate solution project opportunities. The name 'Traro' is derived from the Greek word 'filtráro,' meaning 'to filter.’ This framework was born out of a pressing need to consistently identify the key attributes of winning climate investment opportunities.

Traro® is a comprehensive solution to the challenge of screening climate investment opportunities and assessing their associated risks in a time efficient manner. The goal of Traro® is to become the FICO score of climate investment opportunities. The platform tool empowers investors to efficiently screen opportunities, score and rank them, make informed decisions to move to due diligence, and ultimately accelerate the flow of capital into impactful climate solutions.

GKS's Traro® platform is an innovative tool that addresses the challenges faced by impact investors when screening a portfolio of climate solution investments. The key features that make Traro unique is the research-backed framework and methodology that has been field tested by leading impact-oriented organizations.

Traro allows for expedited screening using just seven key attributes that are pivotal in determining whether a project is optimally positioned for impact and financial returns. Malcolm Gladwell describes in his book Blink, that in the 1990s doctors at the Cook County Hospital in Chicago were having difficulty in accurately diagnosing which patients were actually having a heart attack. A cardiologist named Lee Goldman developed a diagnosis that relied on just 4 key data points in stark contrast to the time and resource intensive comprehensive diagnostic protocols in use at the time that were only 10% effective. This “thin-slicing"--the ability to make accurate rapid decisions by focusing on just the most important factors—is the same employed by Traro® where the "less is more" approach can lead to better decision-making in the impact investing field. These 7 key attributes, arranged in an Arch Framework, have been validated by research on a cohort of USDA funded projects, two rounds of funded projects from the US Forest Service, an impact investing initiative from the US Endowment, and with another group screening for investable projects eligible for the Greenhouse Gas Reduction Fund.

Traro® provides a standardized framework and process for screening climate investment opportunities. This addresses the current inefficiencies where investors face manual, time-consuming vetting on seemingly bespoke and opaque investment opportunities.
1. Traro’s seven assessment elements and corresponding solution in the Arch Framework include:
2. Finding the Problem - Issue discovery System
3. Naming Practices - Effective Modalities Framework
4. Community Participation - Comprehensive Co-creation Blueprint
5. Partners with Expertise - Competent Team Template
6. Precise data and measurements - Impact Measuring Tool
7. Citing Regulatory Alignment - Lucid Policy Landscape
8. Willing and Able Payors - Market Viability Matrix

Project proponents seeking financing populate the responses to the seven Arch elements on Traro®. Using an analytical methodology, these responses are reviewed and scored complete with feedback to the proponent. Traro® Scorecards are with recommendations to the impact investor to help shortlisting top candidates. This systematic approach enables investors to quickly prioritize opportunities worthy of comprehensive due diligence, saving time and resources. It also helps assemble a portfolio that delivers real impact by filtering out weaker opportunities early on.

Traro® is specifically designed to cater to the needs of impact investors, who have traditionally lacked specialized tools to transition from traditional investment approaches. By providing a platform tailored to the requirement of filtering for high potential opportunities, Traro® enables impact investing dollars to flow to priority projects and support the global transition towards net-zero targets.

By addressing the inefficiencies and challenges faced in the current market, Traro® aims to accelerate the growth of impact investments in climate solutions, supporting the urgent global transition towards a sustainable future.