Press releases and events
Progress on the PACTA methodology for corporate lending: ING publishes its first Terra progress report
On September 19, 2019, one of our longstanding partners, ING, published their first progress report on Terra, their approach to steer its €600 billion lending book in line with the goals of the Paris Agreement to keep global warming to well-below two degrees. As ING put it: “With the Terra approach, ING aims to be a positive force in the fight against climate change. The progress report presents ING’s pathway towards climate alignment in the sectors most responsible for climate change and is intended to be published every year. The disclosure addresses developments and climate alignment for the sectors: power generation, fossil fuels, automotive, shipping, aviation, steel, cement, residential mortgages and commercial real estate. These are the sectors in ING’s portfolio that are most responsible for greenhouse gas emissions. In a Climate Alignment Dashboard (CAD) the report presents which sectors are on track for climate alignment and where work is still in progress. This climate change disclosure is a first for banks.” […]
17 international banks now piloting the 2° Investing Initiative’s flagship climate scenario analysis methodology
The engagement represents a major step forward in the banking sector’s contributions to measuring climate alignment Ahead of New York Climate Week 2019, the 2° Investing Initiative (2°ii) is delighted to announce the international banks that are road testing the Paris Agreement Capital Transition Assessment (PACTA) methodology for climate scenario analysis of corporate lending portfolios. […]
The 2° Investing Initiative is delighted to invite you to: BRIDGING THE GAP: FROM PORTFOLIO ALIGNMENT TO IMPACT Technical discussion on evidence-based and impact-oriented targets When? September 24th 2019 – from 9am to 12pm Where? ING Financial District office 1133 Avenue of the Americas, 9th Floor New York, NY 10036 2° Investing Initiative will bring together experts from the banking sector to discuss ways to build understanding of impact-oriented climate commitments. The audience will be invited to participate in a debate on the technical challenges to applying these target-setting and tracking concepts for banks and review a way forward. […]
Climate Tools Workshop, Sept. 9, 2019: Aligning Climate Targets, Pledges and Actions of Financial Institutions and Corporations with the Paris Agreement
2° Investing Initiative and Beyond Ratings, with support from the Institut Louis Bachelier, are delighted to invite you to: Climate Tools Workshop: Aligning Climate Targets, Pledges and Actions of Financial Institutions and Corporations with the Paris Agreement When? 9 September 2019 from 5.00pm to 7.00pm Where? Palais Brongniart 16 place de la Bourse 75002 Paris 2° Investing Initiative will bring together asset owners, asset managers and technical experts to discuss ways to foster interaction between investors and companies, develop a more comprehensive understanding of their needs for climate-related tools, as well as showcase and gather feedback on existing and emerging tools. Since COP21, climate alignment target-setting by investors and banks has evolved into a popular concept accepted by mainstream financial institutions and governments. However, until now, target-setting has mostly been seen by large financial institutions as a way to measure changes in the climate assessment of their portfolio by improving the value of the underlying indicator to communicate on progress, rather than one to drive impact in the real economy. In order to drive actual impact but also to comply with marketing regulations, it is critical to establish market standards on: What is a relevant target from a technical perspective? (discussion on current target frameworks) How to evaluate investment and impact opportunities triggered by the Paris Agreement objectives? How to measure and report progress toward climate targets?How to implement a climate strategy and what existing tools can support investors’ actions? A number of our own ongoing initiatives are related to those issues, notably [...]
In August, the 2° Investing Initiative officially launched the Bank of England climate insurance stress-testing tool on the Paris Agreement Capital Transition Assessment (PACTA) website. The tool uses the breakdown of exposure to different climate-relevant sectors to calculate the effects of climate stress on the portfolio's value. UK insurance companies, as well as investors outside of the UK interested in understanding their performance under the UK stress test, can now go online to run a free, anonymised stress test. Users will be able to generate the stress test results in combination with a freely available Excel tool and the online PACTA scenario analysis software. The tool further builds on our "Storm Ahead" stress test scenario report (January 2019), which provides guidelines for integrating scenario analysis into stress tests of regulated entities. Background On June 18th, 2019, the Bank of England Prudential Regulation Authority launched its biennial insurance stress test, asking the biggest regulated life and general insurers to provide information about the impact of a range of stress tests on their business. The stress test also includes an exploratory exercise related to climate change, which looks into potential impacts to firms’ liabilities and investments stemming from physical and transition risks. The 2° Investing Initiative has been supporting the Bank of England with designing the climate-related aspects of the stress test. More about PACTA The PACTA climate change scenario analysis tool was launched in September 2018 with support from the UN Principles for Responsible Investment (UNPRI), a UN-backed investor body, and California Insurance Commissioner Dave Jones. The [...]
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.