This website features the PACTA for Banks toolkit, which allows banks to operate PACTA independently. The toolkit includes many exposure channels, including changes in demand for fossil fuels, the use of cleantech, carbon pricing, labour and land productivity, and the frequency of extreme weather events. These effects can be subdivided into different channels of action, including the destruction of demand-related transformation during the transition, demand production, direct physical effects, CO2 taxes, emission reduction opportunities, adaptation to physical risks and the shift to costs. The third analytical component of the instrument is a qualitative analysis of the impact of “climate measures taken so far by financial institutions to support the reduction of greenhouse gas emissions.” 9 Users are asked a series of questions about the actions they took at the time of that date, as well as the climate-related results and commitments resulting from these measures. At present, qualitative analysis cannot be compared to quantitative analysis. However, over time, 2DII hopes that its analysis can be useful in determining the effectiveness of climate change control measures taken by users of the tool.10 Regional information on co2 prices will then be combined with a company`s greenhouse gas emissions and financial data to provide information on carbon price risks by 2030. David Jones, California Insurance Commissioner, commented on the launch: “I congratulate the 2nd Investing Initiative and the PRI for the launch of PACTA, the free online scenario analysis tool. Recognizing the uncertainty of future policy and market developments related to the transition to a low-carbon economy, the scenario analysis determines the extent to which a portfolio is exposed to this uncertain and associated risk, as well as the expected evolution of this exposure over time. The development of the toolkit took two years and was tested by 17 major global banks in Europe and North and South America, including Barclays, BNP Paribas, Citi, Credit Suisse and Santander. It was developed with contributions from banks, NGOs and universities.
The PRI works with a number of think tanks and academic institutions to help develop and popularize these instruments. Note: a bottom-up assessment of how listed companies are preparing to move to a low-carbon economy. Transitional risks. The Arctica instrument of the South Pole covers physical and transient risks (with an emphasis on political risks). Top-down portfolio analysis for physical risks in equities and fixed income securities across regions and sectors. Top-down screening is supplemented by hot spot and deep dive analyses to obtain, if necessary, a more detailed analysis of the farms. For more information, click here. Identify companies and countries at high risk of transition and/or physical. Identify leading companies or companies that contribute significantly to decarbonization and create added value. The results of the CIA and CRIS can be used for: Ordered transition effects and progressive physical risks are modelled in Cambridge Econometrics` (EC) e3metrics e-economic model, which takes into account global macroeconomic interactions. Production is deltas in terms of annual growth rates and country inflation, based on climate-related macroeconomic perspectives.
Donor Opinion: The PACTA tool was created as part of the European Union`s Life Programme as part of the GIC/FR/00061 PACTA life-action grant. It has also received support from the International Climate Initiative (IKI). The Federal Ministry of Environment, Nature Protection and Reactor Safety (BMU) supports this initiative on the basis of a decision of the German Bundestag.