Welcome to the 2°C Scenario Analysis homepage of the 2° Investing Initiative, supported by the UN Principles for Responsible Investment.
This website hosts the research of 2° Investing Initiative and its partners, designed to help financial institutions integrate climate objectives and long-term climate-related risks into their portfolio management. You can find a number of different tools and analysis on this website, all open-source and IP-rights free:
- The PACTA climate scenario analysis tool for listed equity and corporate bonds portfolios, applied by over 600 investors around the world on over 3,000 portfolios to date;
- Methodology documentation and source code for the PACTA Lending model, allowing banks to replicate the PACTA model for corporate lending portfolios. Contact us to find out how to join the pilot road-testing group of over 25 banks;
- The Bank of England 2019 climate stress-test for insurance companies (online from mid-July 2019);
- A dynamic stress-testing module allowing investors to develop their own stress-testing frameworks and apply them on their portfolio (online from Q3 2019);
- A target-setting module designed to help set science-based targets for financial portfolios (online from Q4 2019)
- Company reports for engagement, developed in collaboration with key NGOs and data providers, and informing the CA100+ engagement initiative (online from Q4 2019);
The website also hosts a library of 2° Investing Initiative research reports, set to be expanded to host reports from partner organizations over the next year. It will also be home to future industry association climate pilot applications and the 2020 PACTA country pilot involving a UN-coordinated Paris Agreement assessment on progress relative to Art. 2.1c. Contact us to find out more.
While this website is hosted by 2° Investing Initiative, it is designed to be home to leading models, data, software, and analytical solutions at the nexus between climate change, long-term risks, and financial markets. If you or your organization want to get involved in hosting your outputs on this website, or using the underlying source code for your work, get in touch!
What is in it for you?
The tools on this website can help you respond to a range of research questions and needs:
- 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, as well as the ability to implement supervisory stress-tests;
- 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. It is financially supported by the European Commission LIFE Action Grant, the ClimateWorks Foundation, and the Swiss Environment Ministry. It builds on research previously funded by the EU H2020 Sustainable Energy Investing Metrics project. As of June 2019, it has been used by over 700 institutions globally.
If you have any further queries, don't hesitate to contact us.