2° Investing Initiative’s Retail Investing Program employs data-driven research, legal analysis, product development, and communications tools to integrate sustainability into the retail investing market. Our mission is to help reallocate individual savings to finance the low-carbon transition, as well as to align retail investing industry practices with the Paris Agreement goals. To achieve this, we focus on supporting retail investors in their efforts to invest sustainably; helping financial institutions improve the sustainability of their product offering; and devising policy recommendations for governments and regulators, with a special focus on Europe.
The 2° Investing Initiative’s Nature-Finance Stream is an innovative research program constituted of specialists in regulatory policy, economics, and finance. The stream contributes to the creation of a nature-positive and a net-zero economy and society, ensuring the principles of the Just Transition.
Since COP21, climate target-setting by investors and banks has evolved into an increasingly popular concept. However, the lack of standardized frameworks and best practices in this field is emerging as a major obstacle to the alignment of global financial flows with the Paris Agreement goals. To address this issue, 2° Investing Initiative’s Impact Program is working closely with financial institutions, policymakers, and other stakeholders across the sustainable finance sector in order to develop enhanced methodologies on impact and target-setting.
2° Investing Initiative works in emerging markets across the globe to help financial institutions and governments facilitate the low-carbon transition, as well as respond to climate-related risks. Spanning all of 2DII’s research programs, our team of finance and climate experts leads capacity-building, climate risk assessment, policy analysis, and other initiatives across Latin America, Asia, and Africa. Our mission is to help close the gap in regions that are especially vulnerable to the physical and transition risks associated with climate change.
Non-commercial & committed to the public good
We have no commercial contracts and provide all of our research open source and IP rights-free. This policy minimizes financial conflicts of interest and guarantees the public good-driven nature of our work.
Independent and interest-neutral
Our governance and our funding structure is designed to be diversified and multi-stakeholder. This helps ensure that our research does not represent a particular interest group, but rather our best understanding of the truth.
Science- and evidence-based
We continuously aim to expand and improve the evidence base for decision-making in sustainable finance.
Collective intelligence and general interest
We believe in the strength of the group, which is why we work with profiles from all walks of life to create intelligence that serves everyone.
One of the three long-term objectives of the Paris Agreement is “making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development” (Article 2.1c). At the 2° Investing Initiative, we work to align financial markets and regulations with this objective. Nearly 10 years after our founding in 2012, many of the core concepts we devised have been integrated into market practices, the regulatory agenda in the EU and beyond. Find an overview of some of our key impact below.
Putting climate issues on the financial policy agenda
2DII helped draft the preliminary version of France’s groundbreaking Article 173, which was part of France’s 2015 “Energy Transition for Green Growth” law. Even before the Task Force on Climate-Related Financial Disclosures (TCFD) issued its recommendations, Article 173 marked the first time that climate change reporting requirements were imposed on institutional investors. In addition to this law, 2DII has contributed to the European Commission’s first report on sustainable finance and the High-Level Expert Group recommendations on disclosures, supervisors and retail investors, among others.
Helping financial institutions develop science-based climate action strategies
To date, there is still limited understanding of how financial industry actions can contribute directly to impact – GHG emissions reductions – in the real economy. 2DII’s Impact Program is addressing this knowledge gap, by developing free, open-source tools, such as a Climate Impact Management System to guide financial institutions in setting up science-based climate contribution strategies. In parallel, 2DII is leading the Evidence for Impact Working Group in collaboration with 30 leading financial institutions, 10 NGOs and academic institutions to develop, test, and propose new solutions for the financial industry to contribute to the energy transition.
Empowering consumers to align their investments with their environmental convictions
As part of its Retail Investing Program, in 2020 2DII launched the first non-commercial resource platform for sustainably minded retail investors, MyFairMoney, with over 20,000 unique visitors since launch. The site acts as an independent, unbiased source for retail investors and financial advisors alike, comprising educational materials, a fund database rated by ESG criteria, and a suitability questionnaire. MyFairMoney is now available to investors across Europe in English, French, and German. It forms a core part of 2DII’s efforts to leverage retail investors’ convictions – and savings – to shift financial flows towards more sustainable activities.
Fostering the development of credible transition plans
Financing the transition is of utmost importance to achieve the net zero objectives in 2050, as prescribed by all international agreements and institutions. Financial institutions, in their different roles as investors, underwriters and insurers, play a pivotal role in this regard. 2DII supports the research and development of credible transition plans and criteria at international level to foster transition finance.
Extending our research fields to emerging markets to tailor our work to their needs
Through its work in emerging markets, 2DII is collaborating with central banks and financial institutions across Latin America, Africa, and Southeast Asia on transition plans, capacity building, climate scenario analysis, and risk management issues. Specific research topics are developed to take into account the importance of economic development and emphasise the prominent role of adaptative measures in these countries.
Encouraging financing of biodiversity protection and restoration
Since the Paris Agreement in 2015, climate has been at the forefront of industry concerns, but biodiversity and ecosystems have rarely received the same levels of attention. And yet, more than half of the world’s economy is directly dependent on nature. 2DII contributes to the creation of a nature-positive and a net-zero economy and society, ensuring the principles of the Just Transition. Research and intervention focuses on investment in nature-based solutions, improving the regulatory framework to prevent greenwashing, improving biodiversity reporting and risk assessment and mitigation linked to biodiversity loss. Capacity building of supervisors and organisation of expert groups is also at the heart of 2DII intervention.
Independent, non-profit think tank working to align the financial sector with international climate goals.
© The 2° Investing Initiative
2DII today announced it is transferring stewardship of the Paris Agreement Capital Transition Assessment (PACTA) to RMI, formerly Rocky Mountain Institute. PACTA measures financial portfolios' alignment with various climate scenarios, including those consistent with the Paris Agreement. Under RMI’s stewardship, PACTA will remain a free, independent, open-source methodology and tool, and will continue to provide the financial and supervisory community with forward-looking, science-based scenario analysis to help users make climate-aligned financing decisions. RMI will invest in scaling up PACTA’s usability and applicability in day-to-day investment decisions as well as reporting requirements.
Access the full press release here: https://2degrees-investing.org/2-investing-initiative-transfers-stewardship-of-pacta-to-rmi/In the coming weeks, we will update this website with additional information. For now, please note that all contact information remains unchanged.