PACTA 2020

PACTA 2020 - Climate Alignment Assessment

Registration and Portfolio Upload

Schweiz / Swiss / Switzerland

Liechtenstein

Briefing for Investors

Dear Investors,

Thank you for your interest in the PACTA 2020 Climate Alignment Assessment. For a general overview of the PACTA 2020 initiative and research questions answered by the PACTA methodology we refer you to this briefing document, available in english, french and german below.

PACTA 2020 WIKI

For further information regarding the PACTA 2020 Climate Alignment Assessment, the procedure to participate and the PACTA methodology, we refer you to this newly established Wiki page.

PACTA 2020 - Participation for banks 

PACTA 2020 is an internationally coordinated climate assessment. Initially the scope was the evaluation of investment portfolios. Hence the initiative addressed asset managers and asset owners. Based on the collaboration of 2DII and several European banks a framework was derived that allows for evaluation of loan books via PACTA. Now, also banks are invited to join PACTA2020.

In a webinar on the 16th of June 2020 at 2pm (Berlin/Zürich/Vienna) the project manager of the PACTA 2020 initiative will present the framework that allows banks to join PACTA2020.

The proposed procedure does not ask you to share any internal data with 2DII. Instead, each participating bank needs to perform the R-based evaluation on-site and only send the aggregated results. The 2DII supports this procedure by three follow-up webinars.

If you have

Background to the Initative

In order to help bridge te Paris Agreement Capital Transition gap, the governments of Switzerland and the Netherlands have called on Member States to sign on to a new pledge to assess and monitor the climate impact and the alignment of their financial flows with the 1.5°C temperature goal of the Paris Agreement.

The 2° Investing Initiative is providing key support to this pledge, notably via the PACTA tool which is a free, open-source methodology that analyses exposure to climate change-related sectors in equity and fixed-income portfolios, available on this platform. Thus far, the tool has been applied so far on more than 1,500 financial institutions around the world and over $10 trillion in assets under management (AuM).

More on how it works:

Governments (national or sub-national), including some of the world’s biggest financial hubs, and a growing number of financial institutions have commited at the UN Climate Action Pre-Summit to monitor their climate impact and their alignment with the 1.5°C temperature goal.

Already, in addition to Switzerland and the Netherlands, Luxembourg, Sweden, Italy, Portugal, Denmark, Norway and Spain have agreed to commit, with additional interest from other major finance hubs. Private financial institutions, their industry representatives, public financial institutions, and supervisory authorities can also voluntarily commit to take action. 

Going forward, progress will be tracked to ensure the commitments made will result in climate impact in the real economy.

More on 2° Investing Initiative’s contributions: the enhanced PACTA methodology

Committed governments and financial institutions will be offered a number of free benefits, including the opportunity to participate in testing the enhanced version of our PACTA methodology in 2020. This version builds on our earlier, voluntary pilot project with Swiss pension funds and insurance companies in 2017. It also incorporates new insights from our partnership with ING and 16 other banks to road test a methodology for corporate lending.

Past Webinars:

Enhancing Transparency & Aligning Private Financial Flows with the Paris Agreement

November 11, 2019

This webinar focused on how to measure the alignment with the Paris Agreement of equity and corporate bonds portfolios as well as global bank loans with a -based, free and open-source model (PACTA); how to get to impact and risk measurement as well as information on how to concretely participate in the internationally coordinated test round 2020. Information on how to register will be made available shortly.

  • Jakob Thomä, Managing Director at 2° Investing Initiative
  • Silvia Ruprecht, Senior climate policy advisor in the Swiss Federal Office for the Environment FOEN

A recording of the webinar can be found at the bottom of the webpage here.