Cabinet of Curiosities – The world of mainstream & low-carbon benchmarks

New research on climate & mainstream benchmarks

  1. An investor investing in the MSCI World since 2015 would have had higher annual emissions intensity reduction (measured in WACI) than an investor invested in its low-carbon counterparts.
  2. An investor investing $1 billion in 2007 in the MSCI World ESG Leaders Index would have earned 0.8% more over a 14-year period (measured in gross returns) relative to the MSCI World market benchmark
  3. Investing in the MSCI Environmental Index involves investing 50% of your assets in one company: Tesla. The same company that according to MSCI is aligned with a 2.63°C temperature outcome.
  4. Market-cap weighted benchmarks overweight economic sectors by up to 5x-6x relative to their “economic weight”
  5. The new MSCI World Climate index is dramatically improved in terms of climate alignment performance based on the RMI PACTA methodology

This project was made possible by

European Climate Foundation

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: the coming weeks, we will update this website with additional information. For now, please note that all contact information remains unchanged.