Paris Agreement Capital Transition Assessment (PACTA)

Building off a vast climate-related financial database, the tool produces a customized, confidential output report that enables users to study the alignment of their portfolios with climate benchmarks, as well as provide a comparison with their peers. The tool also features a stress-testing module that can be used by supervisors and their regulated entities.

PACTA helps investors implement the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD), as well as comply with related regulations (Article 173 of France’s Law on Energy Transition for Green Growth, upcoming EU disclosure requirements, and more).

Launched in September 2018 with support from UN Principles for Responsible Investment (PRI), PACTA comprises key outputs from two preceding projects: Sustainable Energy Investment (SEI) Metrics and Energy Transition (ET) Risk H2020.

Try out PACTA.

What does PACTA do?

PACTA for investment portfolios (available since 2018)

• Nearly 900 financial institutions with more than $61 trillion in AuM have used the tool to analyze their portfolios
• Users from 69+ countries
• 30,000+ securities covered
• 40,000+ companies covered
• 230,000+ energy related physical assets covered

PACTA for regulators and supervisors

• Used by major regulators and central banks to perform stress-testing and assess climate-related risks to their regulated entities (California Department of Insurance, European Insurance & Occupational Pensions Authority (EIOPA), Swiss Federal Office for the Environment, the Federation of Colombian Insurers (Fasecolda), Dutch prudential supervisor (DNB), and other national insurance associations)

PACTA for corporate lending

• 17 major international banks representing approximately 20% of the top 100 worldwide are currently testing the tool: the five Katowice Pledge banks (BBVA, BNP Paribas, ING, Société Générale, Standard Chartered), as well as ABN Amro, Bancolombia, Barclays, Groupe BPCE, Citi, Credit Suisse, Itaú Unibanco, KBC, Nordea, Santander, UBS, and Unicredit
• Thus far, an estimated $550 billion in assets have been analyzed out of the banks’ ~$18 trillion in total assets (climate-relevant scope)
• Currently in the road-testing phase, with release of the free, open-source tool slated for 2020

PACTA in emerging markets

In order to help further socialize the PACTA tool, we are also performing outreach and engagement activities in emerging markets with support from the International Climate Initiative (IKI) of the German Environment Ministry. We succeeded in building strong partnerships in Latin America in particular and currently partner with two industry associations: the Colombian Insurers’ Federation (Fasecolda) and the Mexican Federation of Asset Managers (AMIB).