PACTA for Investors

Green finance (1)

About PACTA for Investors

In September 2018, 2° Investing Initiative (2DII) introduced the Paris Agreement Capital Transition Assessment (PACTA) tool: a free software that calculates the extent to which corporate capital expenditures and industrial assets behind a financed through equity, bond, or funds are aligned with various climate scenarios.

The development of PACTA however dates back to 2014 when 2DII began developing the tool in partnership with academic organizations including the Frankfurt School of Finance and the University of Zurich, funding from the European Commission, German and Swiss governments, and support from UN Principles for Responsible Investment. Since the tool was launched, more than 4,500 individuals from more than 3,000 institutions have used it to conduct over 18,000 tests, with an average of 600+ tests per month. Overall, the total assets under management of financial institutions using the tools amounts to more than USD 106 trillion.

As of June 2022, 2DII transferred the stewardship of the Paris Agreement Capital Transition Assessment (PACTA) to RMI, in order to scale the impact of the tool in the financial sector and in the real economy. Under RMI's stewardship, PACTA remains a free, independent and open-source methodology and tool.

PACTA as part of the Climate Aligned Finance team, supports RMI’s mission by providing the financial and supervisory community, with forward looking, science-based analysis with the aim of helping to shift capital flows in greener directions and enabling the financial sector to contribute to the goals of the Paris Agreement. You can access the tool here.


Funding Information

This project was supported by the International Climate Initiative (IKI). The Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) support this initiative on the basis of a decision adopted by the German Bundestag. This project has also received funding from the European Union LIFE program. The views expressed here are the sole responsibility of the authors and do not necessarily reflect the views of the funders.