2 Degrees - Paris Agreement Capital Transition Assessment (PACTA) tool
Data category
- Environmental data
- Alignment of equity, bond, or lending portfolios with various climate scenarios
What data do you provide?
PACTA is a free, first-of-its kind software that analyzes the alignment of equity, bond, or lending portfolios with various climate scenarios.
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).
Where and how do you source your data?
The PACTA tool is open source and can be run with any data set structured as per PACTA’s specifications. The version provided online by the 2° Investing Initiative uses Asset Resolution’s asset-level data tied to financial instruments, scenario data from the International Energy Agency, and public information collected by the 2° Investing Initiative.
Who are the data users?
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)
What is the cost for your data offering?
PACTA for investment portfolios is freely available online at https://www.transitionmonitor.com/.
The launch of the free, open source PACTA tool for corporate lending is scheduled for 2020.
The PACTA tool has received funding from the European Union’s Life programme under LIFE Action grant No. GIC/FR/00061 PACTA.