Who is the 2° Investing Initiative?
The 2° Investing Initiative (2°ii) was set up in 2012 with the mission of aligning financial markets with climate goals. It has since become the leading global think tank – with offices in Berlin, Paris, London, and New York City – on developing climate metrics and related policy options in financial markets. 2°ii leads the two largest global research projects on 2°C portfolio alignment and risk indicators (Budget: EUR 5 million), tested by over 100 financial institutions, and engaging 15 research partners (e.g. S&P Ratings/ Dow Jones Indices, Carbon Tracker, WWF EPO, CDP, Climate Bonds Initiative, Oxford University, Kepler-Cheuvreux, etc.). 2°ii co-initiated the first climate-related financial regulation in Europe in the context of the French mandatory climate-related disclosure by investors (Art. 173). It also co-designed the Swiss pilot project asking all Swiss pension funds and insurance companies to report on a voluntary basis their alignment with climate goals, as well as launching the first international climate disclosure awards with the French Environment Ministry. 29 investors applied to the award in its first year, making it an immediate success.
The 2° Investing Initiative has three afiliated legal entities with a not for profit and non commercial approach.
The 2° Investing Initiative is collaborating with a range of European and international policymakers and financial supervisory authorities around the question of measuring the Paris Agreement Capital Transition in financial markets. In this context it is providing insight and analysis in partnership with financial supervisory authorities on their regulated entities, and is helping to realize voluntary initiatives in Switzerland. The project in Switzerland realized in partnership with the Swiss Federal Office for the Environment (FOEN) and the Swiss Sekretariat for International Financial Matters (SIF) provides for a free, voluntary, assessment of pension funds and insurance companies alignment with the Paris Agreement, based on an open-source, freely available model tested to date by over 100 investors. This work will seek to lay the groundwork for tracking progress against Art. 2.1c at systemic basis, as well as support the capacity building of Swiss pension funds and insurance companies on the topic.
Federal office for the Environment, Switzerland
The mission of the Federal Office for the Environment (FOEN) is amongst other things to ensure the sustainable use of natural resources including soil, water, climate, air, quietness and forests. The Climate Division within FOEN notably manages Swiss climate policy and is responsible for the implementation of the international climate agreements in Switzerland. More information you can find here: Climate and financial markets. The climate alignment pilot tests are provided in collaboration with the State Secretariat for International Financial Matters, SIF. More information on the issue of sustainability in the context of financial market policy you can find here: Sustainable Finance.
French Ministry of the Environment, Energy and Marine Affairs
More information about the French Ministry of the Environment, Energy and Marine Affairs can be found here.
As part of the PACTA project, we have partnered with other banks and financial institutions to roll out this testing method
De Nedelande Bank (DNB)
Testing of all Pension funds in Netherlands for 2°C alignment is taking place in Q2 of 2017.
Private Investment Managers
As part of the SEI metrics project (details in background information), over 100 investment managers have already incorportated our climate alignment tool.