The glossary provides more information on some of the key terms we use on MyFairMoney. It also describes criteria, methods and data sources in more detail. This will help you dive deeper into the topic of sustainable investment!
In 2018, the 2° Investing Initiative developed the Paris Agreement Capital Transition Assessment (PACTA ), a freely accessible methodology. It calculates the extent to which corporate and industrial investment spending behind a given equity, bond or loan portfolio is aligned with different climate scenarios. The software, unique to date, draws on a large climate-related financial database that includes more than 30,000 securities, 40,000 companies and 230,000 energy-related tangible assets. Nearly 900 financial institutions in over 69 countries and with more than $61 trillion in assets under management have used the tool to analyse their portfolios.
The methodology focuses on energy-intensive sectors, which on average emit around 80% of a portfolio's CO2 emissions.
More on the methodology and applications are available at transitionmonitor.com.