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Please Mr. Postman! Ten messages on portfolio alignment & implied temperature rise

Report PACTA Portfolio alignment Reporting & disclosures All tags

This report outlines key recommendations from 2° Investing Initiative on portfolio alignment and Implied Temperature Rise (ITR) methodologies.

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Background

From June 7 to July 18 the TCFD held a consultation on forward–looking metrics, targets, and transition plans. As part of that consultation, the TCFD also released a Technical Supplement on Measuring Portfolio Alignment, written by the Portfolio Alignment Team, involving private sector representatives and the COP 26 Private Finance Hub, and led by David Blood.

2DII’s response

2DII welcomes the paper, which puts alignment methodologies squarely on the agenda. As the lead developer of the Paris Agreement Capital Transition Assessment (PACTA) methodology, 2DII was engaged extensively by the Portfolio Alignment Team (PAT) over the past few months and had the chance to explain our view on alignment.

This report provides our feedback on the paper and its recommendations. It is intended to serve as further food for thought in the upcoming alignment discussions that are likely to follow in the coming months ahead of the COP26 and to create public transparency on 2DII’s position. Our aim is to support the TCFD Portfolio Alignment Team and the broader regulatory community in moving towards harmonization of portfolio alignment and implied temperature rise methodologies.

Funder information & disclaimer: This report has received funding from the European Union’s Life NGO program under Grant Numbers LIFE20 NGO/SGA/DE/200040 and from the European Climate Foundation. This work reflects only the authors’ views, and the funders are not responsible for any use that may be made of the information it contains.

    

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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. 

2°Investing Initiative is delighted to announce its strategic alliance with The Sustainable Finance Observatory!