The ESG Benchmark for Real Assets

2 degrees Investing Initiative

The 2° Investing Initiative (2°ii) is the global think tank for developing climate and long-term risk metrics and related policy options in financial markets. 2°ii coordinates the world’s largest research projects on climate metrics in financial markets, with over 40 research partners in the public, private and philanthropic sector, and over € 3 million re-granted to research partners to date. As part of this work, they developed the first science-based target setting and 2°C scenario analysis tool for financial portfolios, applied by over 200 financial institutions and three financial supervisory authorities to date. 2°ii also initiated the first climate-related financial regulation in Europe in the context of the French mandatory climate-related disclosure by financial institutions (Art. 173), in addition partnering with the Swiss government on 2°C scenario analysis, involving two-thirds of the Swiss pension funds and insurance market.

Their research focuses on three key pillars:

  1. Developing data, scenario, and analytical solutions and tools for measuring the consistency of financial portfolios and markets with long-term climate and economic trends, as well as associated potential financial risk;
  2. Addressing the key barriers to integrating these solutions into investment and financing decisions, notably around the ‘tragedy of the horizons’;
  3. Aligning financial policy frameworks with policy objectives, related to the efficient intermediation of capital and long-term policy targets.

Service(s)

Services
  • Energy & Emissions
  • Risk & Opportunity
  • Strategy Governance & Disclosure

Region(s)

Regions
  • Europe

Language(s)

Countries