Press releases and events
We are delighted to announce that 2° Investing Initiative just became a GRESB industry partner and now belongs to the GRESB Strategic Alliance Partnership! In the scope of our collaboration with Beyond Ratings, we are currently developing a platform for national climate technology and investment transition pathways. This model will cover 10 sectors, including Real Estate*, and will fill an essential market gap in providing, at a country level, sectoral technology pathways consistent with 2°C scenarios. Such technology road maps respond to the existing market demand of governments and investors and support corporate needs to better grasp how they can plan technological investments with regards to climate performance. When looking for industry partners in the Real Estate sector, we identified GRESB as a leader for sustainability-related data, and connection between our two organisations was natural in terms of mission alignment on sustainability and climate topics. We are looking forward to our collaboration with GRESB in the next months! * Other sectors already covered in the 2°ii database include: Coal production, Oil&Gas production, Power generation, Aviation, Cement, Shipping, Steel, Automotive, Agriculture (ongoing)
We are pleased to announce that Simon Messenger has been appointed to the UK Financial Reporting Council's (FRC) Future of Corporate Reporting Advisory Group. The group will provide input and give advice to the FRC as it develops its project on the future of corporate reporting. Simon Messenger Simon Messenger, Director for France and the UK at the 2° Investing Initiative, said: "I am delighted to have been appointed to this advisory group. It is a major project for the UK financial reporting community, which will lead to a number of recommendations for changes to regulation and practice. We look forward to contributing our own experience, in particular with regard to various European corporate reporting directives and scenario analysis disclosure, in order to shape global regulatory practices." The group comprises of representatives from the FRC’s major stakeholder groups – companies, investors, civil society groups, academics, auditors, audit committee chairs, lawyers and design agencies. Members of the group have been selected to ensure that there is an appropriate balance of members from different backgrounds. You can find the FRC's press release here. The FRC sets the UK Corporate Governance and Stewardship Codes, as well as UK standards for accounting and actuarial work. It monitors and takes action to promote the quality of corporate reporting and operates independent enforcement arrangements for accountants and actuaries. The FRC also sets auditing and ethical standards and enforces audit quality. By clicking on the link above, you will be leaving the 2˚ Investing [...]
The 2° Investing Initiative is pleased to invite you to a Finance for Tomorrow week-affiliated event: Seine, sunrise and sea levels A breakfast boat cruise on climate scenario analysis When? Tuesday, 27 November 2018 at 7.45am for departure at 8.00am Where? Embarcadere Quai de l'horloge - Boat: Henri IV Since the Paris Agreement, demand from the investment community has been rising significantly to understand how their portfolios contribute to limiting global warming to well under 2°C. How much do their actions contribute to global warming or the mitigation of it? How aligned are their portfolios with the trajectories required by the International Energy Agency? A number of tools, initiatives and frameworks support investors, but how do they actually work in practice? Come and join us for a breakfast boat cruise on the Seine to find out more about climate scenario analysis in real life and hear from industry experts on how they are tackling the issue. Dave Jones, California Insurance Commissioner, and Leon Wijnands, ING’s Global Head of Sustainability, will discuss their own approaches to scenario analysis and some of their initial results. Simon Messenger, Head of Corporate and Investor Engagement at the 2° Investing Initiative, will present findings from our latest research and work, as well as discuss future trends. AGENDA 7.45am Arrival of guests 8.00am Departure of boat and breakfast 8.15am Scenario analysis and real-life application: 1) Scenario analysis in practice State of California: Dave Jones, California Insurance Commissioner 2) Scenario analysis in practice Project [...]
As a follow-up to the EU's Action Plan on Financing Sustainable Growth, the European Commission has published a legislative proposal on low-carbon benchmarks and positive carbon impact benchmarks. The 2° Investing Initiative and WWF are hosting an event to bring together market experts and policymakers to discuss the best way forward to shape the benchmark regulation and contribute to climate mitigation in Brussels on 26 November 2018. The event is by invitation only. The agenda can be found here.
A recording of the webinar from 8 October 2018, in which you can hear from the Principles for Responsible Investment, the Insurance Commissioner of California and us about climate scenario analysis and the PACTA tool we have developed to assess the alignment of investor portfolios with the goals of the Paris Agreement, is now available here.
We are co-hosting an event with BNP Paribas and ISS-Climate on 24 September 2018 as part of Climate Week NYC. Agenda 24 September 2018
Today ING announced that it will start steering its €500 billion lending portfolio towards meeting the climate goals of the Paris Agreement after developing a cutting-edge, precise method to do this with the 2˚ Investing Initiative (2˚ii). The Paris Agreement aims to keep global warming as a result of climate change to two degrees Celsius or below. ING had been working for several years to figure out the best way to measure the climate impact of its lending portfolio. After piloting a financed-emissions approach that ultimately could not be used, ING sought alternative methods for measuring and steering. In early 2018, ING partnered with 2˚ii to extend the initiative’s existing 2°C scenario analysis framework for equity and bond portfolios – the so-called Paris Agreement Capital Transition Assessment or PACTA tool – to corporate lending portfolios. As a result, 2˚ii and ING have together taken the lead and successfully developed a methodology that could become the standard for how international banks set science-based targets. ING calls this the Terra approach. “We are delighted that a multinational bank such as ING helped us pioneer this methodology for financial service providers,” said Jakob Thomä, managing director of 2˚ii. “The methodology – and its resulting 2˚C-aligned portfolios – will be an important contributor to combating climate change. We hope other banks will follow suit and adopt it as well.” Compared to other measurement approaches, this science-based approach could ultimately have a significant impact because it enables banks to direct their money towards financing technologies [...]
The PRI, together with California Insurance Commissioner Dave Jones, is pleased to support the launch of a free-to-use, online tool – developed by the 2⁰ Investing Initiative – for assessing climate transition risk in investor portfolios. This tool, the Paris Agreement Capital Transition Assessment or PACTA tool, analyses exposure to transition risk in equity and fixed income portfolios over multiple scenarios, thereby helping to reduce information barriers on how climate scenario analysis can be done. Most significantly, the tool allows investors to see the gap between their existing portfolio and two-degree benchmarks. An earlier version has been used by over 250 investors – many of whom are PRI signatories – and four regulators, including the Swiss financial regulator, the California Insurance Commission and the Dutch Central Bank. The tool offers a solution to a number of existing barriers, notably: The tool, and the database behind it, is a solution to the problem of where investors can obtain data in the event that companies do not disclose information on their carbon emissions. It represents the gap between a two-degree benchmark and investor portfolios and the graphs are adjustable by sector, region, type of climate reference scenario and other indicators. The tool can be downloaded in a 30-page output report, which is confidential to the user. The launch of the tool supports the PRI’s ongoing commitment and its actions to help institutional investors transition to a low-carbon environment, including the alignment of the PRI Reporting Framework with the recommendations from the Task [...]
Contribution to the Paris Agreement: Connecting the dots between scenario analysis and investor targets
The 2°Investing Initiative, ADEME and CDP are co-hosting this GCAS-affiliated invite-only event in San Francisco on 11 September 2018, at which many high-profile speakers will discuss the financial sector’s contribution to the Paris Agreement, scenario analysis, target-setting and the need for evidence to back up green marketing claims. Agenda 11 September 2018
Global independent think tank the 2° Investing Initiative (2°ii) has appointed Simon Messenger as Director of France and UK to lead its engagements with companies and investors on climate scenario analysis. Stan Dupré, Founder of 2°ii, said: “We are delighted to have Simon on board. He will bring a vast amount of experience and expertise to oversee our expanding programme of work to align the financial sector with the 2°C climate goals of the Paris Agreement. Particularly exciting is that he will help to develop further our pioneering work on 2°C scenario analyses with companies and investors in response to the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD).” Simon has 15 years of academic and professional experience in sustainable finance and sustainability reporting. As Managing Director of the Climate Disclosure Standards Board (CDSB), he worked with investors, companies and regulators on the disclosure of environmental and natural capital information in mainstream financial reports. He also led CDSB’s work in relation to the TCFD recommendations. Prior to this, Simon was Head of Consulting at the Energy Saving Trust and a sustainability manager at PwC and Deloitte. He holds two first-class degrees in environmental and climate change science and was highly commended in the Young Sustainability Executive category at the BusinessGreen Leaders Awards in June 2018. Joining 2°ii, Simon Messenger, Head of Corporate and Investor Engagement and Director for France and the UK, said: “This is an extremely exciting opportunity, and I am looking forward to [...]