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In 2017, recognizing the importance of the financial sector in the transition to a low carbon economy, the Swiss Federal Office for the Environment (FOEN) and the State Secretariat for International Financial Matters (SIF) initiated a voluntary assessment of the alignment of Swiss pension funds and insurance portfolios with the below 2-degrees climate goal.

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. The volume of the assets under examination and the participation of various sizes of pension funds and insurance companies made a representative analysis possible.

The results showed that investments currently support global warming of 4 to 6 C. There are, however, great differences between individual insurance companies and pension funds. Some are already making climate friendly investments, while others favour particular sectors or classes of investment. However, in other sectors, such as the expansion of renewable energies, the average investor tends to lag behind the world market. The tests may contribute to a further rethinking within the Swiss financial sector.

Funder information: This report has received funding from the European Union’s Life programme under LIFE Action grant No. GIC/FR/00061 PACTA. This report reflects only the author’s view and the Agency and the Commission are not responsible for any use that may be made of the information it contains.

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.