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The Paris Agreement Capital Transition Assessment (PACTA) is a free, open-source tool that enables users to better understand how to align financial flows with the Paris Agreement goals. It 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).

Elaborated with support from the European Commission, German and Swiss governments, and UN Principles for Responsible Investment, PACTA for investment portfolios has been available since 2018. As of April 2020, it has been used by over 1,000 financial institutions with more than USD 61 trillion in AuM, as well as by supervisors and central banks to assess their regulated entities (European Insurance and Occupational Pensions Authority (EIOPA), California Department of Insurance, Bank of England, and more). In 2019, we also started to develop PACTA for corporate lending portfolios, which is currently being tested by leading global banks such as Société Générale, BNP Paribas, BPCE, and more.

Building off a vast climate-related financial database, the PACTA tool aggregates global forward-looking asset-level data (such as the production plans of a manufacturing plant over the next five years), up to parent company level. The tool then produces a customized, confidential output report, which allows investors to assess the overall alignment of their portfolios with various climate scenarios and with the Paris Agreement.