Welcome to the 2°C Scenario Analysis homepage of the 2° Investing Initiative, supported by the UN Principles for Responsible Investment.
This website allows users to measure the alignment of their listed equity and corporate bonds portfolios across key transition sectors and technologies. Users can access the online tool under the banner ‘Participate’ and find background information about the hosts of the tool, as well as responses to frequently asked questions and publications on 2°C scenario analysis.
Why should you participate?
Participating in the climate alignment pilot test provides a number of benefits:
- Free and confidential assessment of how your listed equity and corporate bonds portfolios compare to a 2°C transition (as defined by the IEA);
- Insight into how your climate policies compare to your peers;
- A better understanding of potential capital misallocation and potential associated financial risk under 2°C transition;
- Aligning with the Financial Stability Board Task Force on Climate-Related Financial Disclosures recommendations on 2°C scenario analysis.
The tool provided on this website is supported by the UN Principles for Responsible Investment. To date, it has been directly applied by over 250 financial institutions, the Swiss pension fund and insurance association, as well as three financial supervisors. It is financially supported by the European Commission LIFE Action Grant and the Swiss Environment Ministry. It builds on research previously funded by the EU H2020 Sustainable Energy Investing Metrics project.
What does the tool measure?
The tool allows investors to respond to three research questions:
- What is my current allocation to high-carbon and low-carbon technologies across key climate-relevant sectors (~75% of global CO2 emissions) and how does this compare to the market?
- What is the expected evolution of this allocation over the next 5 years – based on company’s revealed investment and production plans – and how does this evolution compare to climate scenarios, in particularly those consistent with limiting global warming to 2°C or well-below 2°C above pre-industrial levels?
- What is my estimated future allocation to high-carbon and low-carbon technologies and how does this compare to the market and portfolio transition under a 2°C scenario?
If you have any further queries, don't hesitate to contact us.