Paris Agreement Capital Transition Assessment

Definition

The Paris Agreement Capital Transition Assessment (PACTA) has been developed by the 2° Investing Initiative with backing from UN Principles for Responsible Investment, PACTA enables users to measure the alignment of financial portfolios with climate scenarios as well as to analyze specific companies.

Methodology Elements

The PACTA methodology (e.g. as used by the Katowice Banks ) maintains the following key methodological principles:

• The approach focuses the measure of mitigation objectives not on adaptation objectives at this stage. The state of knowledge on adaptation objectives and pathways is such that there is still not the same breadth of scenarios and data to measure adaptation alignment.
• The approach is scenario-agnostic in the sense that it can adapt to various climate transition scenarios and thus various transition pathways provided it is developed in a rigorous manner and meets the objectives of the Paris Agreement.