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Assessing the Alignment of Portfolios with Climate Goals

The primary objective of the project is to provide a framework for investors and policy makers to translate high-level climate policy goals (e.g. limiting global warming to 2°C) into a benchmark that can inform portfolio allocation targets.

In performing this translation, the framework generates a set of key, sector-specific performance metrics that measure the exposure of a given portfolio to the energy and technologies that represent climate problems and solutions. These performance metrics allow for the first time portfolio-level benchmarking of climate policy alignment. They act as benchmarks for both asset managers and companies on how their business model today aligns with decarbonization trends and quantify the necessary steps to close the 2°C exposure gap.

The related presentation can be found here.

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.