PACTA 2020

PACTA 2020 Initiative: Coordinated Climate Alignment Assessments

PACTA 2020 Participant Platform

Schweiz / Suisse / Switzerland

Liechtenstein

Updates

The registration period for Switzerland and Liechtenstein has now ended. As of July 2020, more than 150 Swiss investors, including some of the country’s biggest banks, insurances, and pension funds, have signed up for the climate compatibility test – representing a new milestone in global uptake of the tool. The results will be released in early November. For more information, please refer to our recent newsletter.

The registration period for the equity and bonds analysis in Austria ended on August 14th. For any banks that wish to participate in the loanbook evaluation, please contact us via email: pacta2020@2degrees-investing.org.

Briefing for investors

For more information about the initiative, please refer to the briefing document available below in English, French, and German.

PACTA 2020 Initiative - Participation for banks

Initially, the scope of the PACTA 2020 assessments focused on investment portfolios. Later, 2DII and several European banks collaborated to develop a framework to evaluate banks' loan books using the PACTA methodology.

As a result, banks have also been invited to join the PACTA 2020 initiative.

For more information about how banks can participate in the initiative, please contact pacta2020@2degrees-investing.org.

PACTA Knowledge Hub

For more information about the PACTA methodology, FAQs, as well as the 2020 Climate Alignment Assessment and procedures for participating, please refer to this newly established Wiki page.

 

More about the PACTA 2020 Initative

Ahead of the UN Climate Action Summit 2019, the governments of Switzerland and the Netherlands presented a new initiative to measure and align financial flows with the Paris Agreement’s 1.5°C goal.

Under the terms of the pledge, participating governments and financial institutions will use the PACTA methodology devised by 2° Investing Initiative to compare their investments and financing with climate benchmarks.

The first assessments started in early 2020 and involve the governments of Austria, Denmark, Italy, Luxembourg, Norway, Portugal, Spain, and Sweden, in addition to Switzerland and the Netherlands. Private financial institutions, their industry representatives, public financial institutions, and supervisory authorities can also voluntarily participate. The expanded model will later be made available for asset managers and banks, in addition to Swiss pension funds and insurance companies.

Background: 2DII’s 2017 collaboration with the Swiss Federal Office for the Environment

This initiative is based on a successful pilot project that 2DII ran in partnership with the Swiss government. In 2017, the Federal Office for the Environment and the State Secretariat for International Finance invited pension funds and insurance companies to use the PACTA methodology to test the climate compatibility of their investments. 79 pension funds and insurance companies, representing about two-thirds of the total market as measured by assets under management, used the PACTA methodology to test their portfolios for climate compatibility. Following the exercise, 40% of participants said that the analysis triggered climate-related actions.

Thanks to the success of this engagement, Switzerland and the Netherlands joined forces to launch the 2020 PACTA initiative to measure and align financial flows with the Paris Agreement’s 1.5°C goal.

For more information on the 2017 assessment, see our report: “Out of the fog: Quantifying the alignment of Swiss pension funds and insurances with the Paris agreement.”