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The dialogue around carbon asset risk has grown over time, but it has occurred in the absence of a comprehensive, generally accepted framework to guide institutions and other stakeholders in their efforts to think consistently and systematically about the issue.

To meet this important need, the World Resources Institute (WRI) and UNEP Finance Initiative (UNEP-FI) launched a process in early 2014 to develop a framework to help fnancial intermediaries and investors, as well as stakeholders with an interest in this topic, more systematically to identify, assess, and manage carbon asset risk. This framework is intended to be useful for institutions with a diverse range of risk appetites, as well as perspectives on the probability and impact of various types of carbon risk. It was developed through a multi-stakeholder process that included investors, academics, consultants, and representatives from banks, insurance companies, and environmental advocacy organizations.

 

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.