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Climate Strategies & Metrics: Exploring Options for Institutional Investors

This report reviews the strategies and metrics available to investors seeking to measure and improve the climate friendliness of their portfolios, defined as the intent to reduce GHG emissions and aid the transition to a low-carbon economy through investment activities.

An investor strategy for climate friendliness encompasses a set of activities, an approach for positioning and signaling, and the metrics to support the strategy as summarized in Fig.0.1. This report first distinguishes climate friendliness from carbon risk (Chapter 1). It then explores how investors can increase their climate friendliness by asset class (Chapter 2) and achieve a climate impact, defined as GHG emissions reductions in the real economy through positioning and signaling (Chapter 3). Finally, the report assesses the landscape of available metrics and their suitability for each strategy (Chapter 4) and concludes with a summary and possible future developments (Chapter 5).

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.