Q: How can I participate in the project?
A: If you are interested in participating, please e-mail us email@example.com or reach us by phone +491639685300 (German and English) or +33142811997 (French and English). We will then sign a non-disclosure agreement (NDA), a template can be found online. For the testing process we require the data regarding your Portfolio composition as of 31.12.2016, specifically a list including the identification number „ISIN“, „Company Name“ (for checking purposes), and value (either as # of shares or book value). A template for the data submission can be found online. The file can be returned as in .xls, or .xlsx format. To better identify exposure to long term risks, we also have included two questions regarding portfolio turnover. This should be then sent to firstname.lastname@example.org. The templates can be found at www.transitionmonitor.ch.
Q: Will my portfolio information be kept confidential?
A: 2° Investing Initiative commits to keeping all portfolio information confidential. Portfolio data will be stored in a password-protected folder. All analytical results will be shared exclusively with the respective pension fund and insurance company, with only anonymized results used for meta-analysis. The names of participating investors will not be shared.
Q: How much does it cost to participate?
A: Participation is free of charge.
Q: Will I be required to publish the results? Will the results be shared with the Swiss government?
A: You will not be required to publish the results. All information shared with the Federal Office for the Environment (FOEN) und State Secretariat for International Financial Matters (SIF) will be fully anonymized and only be used for the meta-analysis.
Q: What asset classes are covered in the pilot?
A: The pilot will be limited to listed equity and corporate bonds portfolios.
Q: How is this analysis different from a carbon footprint?
A: The pilot orients itself after the draft recommendations of the FSB Task Force on Climate-Related Financial Disclosures calling for 2°C scenario analysis and the Paris Agreement objective of aligning financial flows with climate goals. As a result, it emphasizes this aspect. To date, carbon footprint data does not cover forward-looking, scenario specific questions and thus cannot be used for such an assessment.
Q: What is the difference between this and the CLIMPAX assessment tool?
A: This pilot focuses specifically on the question of the 2°C alignment of financial portfolios, whereas the CLIMPAX assessment tool seeks to develop a qualitative score about a fund. The approaches are thus complementary.
Q: So is this a risk analysis?
A: The pilot specifically does not claim to quantify the risk to insurance companies and pension funds. The analysis provided can however help to inform on this question by demonstrating potential alignment or misalignment with economic trends, as defined by the IEA. To help inform on this question, the pilot also involves a voluntary additional question on portfolio turnover to help identify potential long-term risk management.
Q: What should I do if I invest in funds?
A: Participating investors are kindly asked, where possible, to provide information on direct holdings in individual securities. All information provided in the form of investments in funds will be matched to a funds database that 2ii has access to. It cannot be guaranteed that funds information can be retrieved in all cases. As a result, direct provision of ownership of individual securities is recommended where possible.
Q: Who will help me interpret the results?
A: We will organise two workshops on the 23.10.2017 afternoon in Geneva (French) and 24.10.2017 afternoon in Zurich (German) to explain the nature of the results and how they can be interpreted. In addition, if you have any specific questions about your assessment, please email email@example.com.
Q: What is the timeline of the project?
A: Deadlines for receiving portfolios is July 15th, 2017. We plan to complete all analysis by September 30th 2017.
Q: Why is the pilot based on the 2ii model? Why can‘t I apply my own analysis?
A: The pilot is based on the 2ii model given its nature as the only approach to measuring 2°C alignment of financial portfolios, as well as open-source access. The choice of one model ensures comparability of results.
Q: What if I want to find out more and do further analysis?
A: The project provides a common, simple assessment framework in line with best practice, as established by the International Award on Investor Climate-related Disclosures in 2016. However, it of course doesn‘t preclude you from contacting commercial data providers and investment consultants for further analysis.
Q: I have another question that isn‘t answered in this briefing.
A: Get in touch. You can also participate in introductory webinars being held on 4 May, 2017 (German) or 5 May, 2017 (French). We look forward to hearing from you.