OUR RESEARCH 2018-02-15T12:09:33+00:00

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If you are interested in contributing or participating in one of our projects,
please don’t hesitate to get in touch with us: contact@2degrees-investing.org

In this project 2ii collaborates with banks to extend the existing 2°C scenario analysis framework to corporate lending portfolios including a road-test with participating banks of the methodology developed in the course of the project.


The project KliFin -Scanner  (Climate finance product scanner for retail investors and banks) aims to sensitize retail investors and banks for climate friendly and climate risk in financial portfolios and thus to contribute to the decarbonization of the financial sector and the economy. The project focuses on retail investors, aiming to reduce the emissions connected with their investments in financial markets and as a consequence of this reducing the emissions of the economy. It follows a holistic approach, addressing all key stakeholders by influencing both the demand- and the offer-side of climate friendly saving products at the same time. The project runtime is 01.01.2018 – 30.06. 2020.


The project Aiming for Impact funded by the KR Foundation and the French environmental agency ADEME puts the impact of investment-related climate actions on the agenda. So far, most actions focus on requesting better disclosure of company activities, and are likely to have only marginal impacts on investment plans.

2016 saw the official launch of the SEI Metrics Projects providing a free and open-source portfolio test for listed equity portfolios. Over 200 institutional investors around the world have signed up to test their portfolios, including large asset managers, pension funds, insurance companies, banks, and sovereign wealth funds. Since its launch, over 2,000 portfolios have been tested for 2°C alignment with over $3 trillion in assets under management.


A key challenge to assessing long-term and climate-related risks involves what Mark Carney, the Governor of the Bank of England, called “the tragedy of the horizon”. Long-term liabilities and assets face a ‘valley of death’ in terms of the time horizons underlying capital allocation decisions in financial markets. As a response, we have initiated the ’Tragedy of the Horizon’ research program to quantify time horizons in the investment chain and elevate long-term risk assessments in financial markets.


2016 saw the official launch of the Energy Transition Risk project (ET Risk), a EUR2.2 million project involving S&P Market Intelligence, S&P Dow Jones Indices, Oxford University, Kepler-Cheuvreux, CO-Firm, I4CE, and the Carbon Tracker Initiative. The project seeks to develop the toolbox of energy transition risk assessment – reference scenarios for financial analysis including a 2°C scenario analysis, ET risk data, as well as financial models. The project is funded by the European Commission H2020 programme.


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April 2018

The Green Supporting Factor – Quantifying the impact on European banks and green finance

April 1st, 2018|

April 2018: In the context of mobilising policy actions with regard to sustainable finance, the European Parliament and Commission are considering introducing a Green Supporting Factor (GSF) or Brown Penalty (BP) for capital reserve requirements. The objective of this working paper is to identify the potential impacts of introducing a GSF or a Brown Penalty.

Full Text

February 2018

Testing the Japanese listed equity market alignment with the 2°C climate goal

February 28th, 2018|

Feb. 2018: Testing the Japanese listed equity market alignment with the 2°C climate goal – Energy technology diversification assessment relative to the IEA 2°C scenario

On 28 February, 2018, the 2° Investing Initiative (2°ii) released a report analysing the alignment of the Japanese stock market with the Paris Agreement on climate change, in partnership with Professor Jusen Asuka of Tohoku University, Dr. Michiyo Morisawa, Director of the CDP Japan office and Head of PRI Japan, Pr. Yoshihiro Fujii, Representative Director of Research Institute for Environmental Finance (RIEF), and the Institute for Global Environmental Strategies (IGES). Based on a comparison of the Tokyo Stock Price Index (TOPIX) with the International Energy Agency (IEA) 2°C scenario, the Japanese listed companies of the TOPIX appear to be globally misaligned with the 2°C climate goal. It means that investors exposed to the TOPIX index are, so far, not in line with the commitment of the Japanese Government to keep global warming well below the +2°C limit. These results call for investors to define more informed investment strategies towards decarbonization, and for policy makers to better incentivize the financial sector so that it can contribute effectively to the fight against climate change.

The report is available in Japanese […]

January 2018

November 2017

ISO Standard for Investment, Financing and Climate Change (ISO 14097)

November 22nd, 2017|

November 2017: The ISO 14097 “Framework and principles for assessing and reporting investments and financing activities related to climate change,” was proposed by the French standardization body AFNOR and approved by ballot in January 2017. The convenors are Stan Dupré (CEO of 2° Investing Initiative – commissioned by AFNOR) and Massamba Thioye (UNFCCC secretariat), with AFNOR acting as secretariat.

Full Report

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