Climate stress tests remain widely misunderstood, despite their value as a risk management tool.
This short working paper constitutes a first attempt to understand the nature of current stress tests, their application to date with regards to carbon risks, and the potential for developing a new generation of stress tests to measure the exposure to carbon risks in the context of the energy transition.
Independent, non-profit think tank working to align the financial sector with international climate goals.
© The 2° Investing Initiative
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.
