PACTA for Emerging Markets

PACTA for Emerging Markets

Since the launch of our online PACTA tool in September 2018, there has been significant uptake, with more than 800 users testing more than 4,500 portfolios as of mid-2019. However, most interest thus far has been concentrated in the US, UK, and other major developed markets, with relatively less knowledge of the tool in emerging markets. To address this issue, with support from the International Climate Initiative (IKI) of the German Environment Ministry, 2°ii launched the PACTA for Emerging Markets project in July 2018. The goal is to help promote the PACTA tool in emerging economies, providing policymakers, regulators, institutional investors, and banks with an assessment framework to measure the alignment of financial portfolios and markets with climate goals, as well as transition risks. 

During the first six months of the project, we focused our outreach on three regions: Asia, Sub-Saharan Africa, and Latin America, organizing roadshows in Kenya, Colombia, Chile, Mexico and Singapore. We succeeded in building strong partnerships in Latin America in particular, including with Principles for Responsible Investment (PRI) and the Mexican Green Finance Committee (CCFV in Spanish), as well as with the Asian Sustainable Finance Initiative in Singapore.

We are currently in the process of applying the assessment framework by partnering with two industry associations in Latin America: the Colombian Insurers’ Association (Fasecolda) and the Mexican Association of Stock Market Institutions (AMIB).

This project is part of the International Climate Initiative (IKI). The Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) supports this initiative on the basis of a decision adopted by the German Bundestag.