PACTA Climate Test Switzerland 2022
Welcome to the Climate Test 2022 in Switzerland Website. Here you will find all the necessary information to partake in the test such as timeline, methodology summary, portfolio template, NDA, etc.
Aiming Higher: Measuring progress on the climate goal alignment & climate actions of Swiss financial institutions – Final report
RESULTS ARE NOW AVAILABLE FOR ALL SWISS FINANCIAL INSTITUTIONS. You can access the reports in the Transition Monitor Platform. If you are facing any issues with your results please contact us at firstname.lastname@example.org. We appreciate your patience as it might take a few days to get your e-mail answered. If you are interested to dive deeper into the PACTA Climate Test Switzerland 2022, you can find the links to download the participant briefing in different languages in section 3 below.
Since 2017, the PACTA Climate Test has regularly monitored how climate-friendly the Swiss financial market invests. All pension funds, insurance companies, banks, and asset managers can participate voluntarily. The FOEN conducts the tests in cooperation with the State Secretariat for International Financial Matters SIF. The Climate Tests are internationally coordinated.
The PACTA Climate Test creates comparable transparency across financial sectors and supports concrete, climate-relevant action. The 133 financial institutions that participated in the test in 2022 received individual, interactive reports with the results of their climate alignment. This was done for each portfolio and with a comparison with the other participants. The financial institutions are free to use their results only for internal follow-up work or to disclose them.
The results for the year 2022 show a mixed picture. Some financial institutions are setting concrete climate targets, trying to persuade companies to do business in a more climate-friendly way, heating their own properties in a renewable way or supporting mortgage customers with renovations. However, greater efforts are needed in the near future before the Swiss financial market as a whole can act in a climate-friendly manner.
Here you can find the results report of the PACTA Climate Impact Assessment 2022 for the Swiss financial market in English. The summary is available in English, German and French.
The webinars are intended to inform both new and experienced users about PACTA, how to participate in the project, and the improvements made in the platform/methodology since the 2020 project. Even if you already participated in other rounds of the Swiss PACTA Climate Test 2022 we highly recommend you attend the webinars as PACTA methodology and tool is constantly improving.
Sessions will be recorded and a replay link will be made available in the table below. Please, note that the Q&A session of all webinars will not be recorded to ensure participants remain anonymous.
The webinars will be offered in German, French, and English, please check the dates below and register for the webinar of your preference.
|Topic||Date and Time||Language||Registration||Materials|
|PACTA climate test introduction||15.02.2022|
10.00 AM – 12.00 PM
|EN||Closed||Slides & Recording|
|PACTA für erfahrene AnwenderInnen||28.02.2022|
1.00 PM – 2.00 PM
|DE||Closed||Slides & Recording|
|PACTA pour les utilisateurs expérimentés||28.02.2022|
2.00 PM – 3.00 PM
|FR||Closed||Slides & Recording|
|PACTA Klimatest Einführung||07.03.2022|
4.00 PM – 6.00 PM
|DE||Closed||Slides & Recording|
After watching the webinars you will have all the tools to participate in the project. One of the essential steps to participate in the PACTA Climate Test Switzerland 2022 is registering in the Transition Monitor Platform. In the platform, you will be able to submit your portfolios to analysis.
It is important to highlight that the platform will be open for registration and portfolio submission between 01.03.2022 and 31.05.2022. It is not possible to register and submit portfolios outside these dates.
To access the platform and submit your portfolios, you should follow these steps:
- Registration with a single e-mail address per institution on the Transition Monitor Platform (https://platform.transitionmonitor.com/) with the Initiative Code PA2022CH.
- Signing sample NDAs. You will find the pre-signed NDA document on the Transition Monitor Platform. To guarantee that your data is safe, a pre-signed NDA with 2DII (for equity and bond portfolio) and WP (for real estate portfolio) as well as a separate NDA just with the dedicated persons from Wüest Partner AG for the analysis of the Swiss mortgage portfolios are made available for financial institution in the NDA section in this website and in the Transition Monitor Platform in German and French. 2° Investing Initiative does not require participants to sign this NDA in order to perform the test. However, this may be required by internal financial institutions policies. Please, note that 2DII cannot accept edited or personalized NDAs.
- Upload of data. Use the CSV template to organize your portfolio data and upload it in the platform. You can find separate templates for the different modules (Equity & corporate bonds, real estate, mortgages, survey) in the Transition Monitor Platform or in the section Templates in this website. For real estate and mortgage portfolios, there will be a link redirecting you straight to Wuest Partner website, where the data transfer shoud occur.
- Automated data validation and feedback. After uploading your portfolio, the platform will give you the option to check the quality of the data you provided as well as information on what will be covered. At this stage you can check if any asset in your file was reported incorrectly. If that is the case you can go back to your portfolio, correct it and upload once again. This option is available on the Upload page at the Transition Monitor Platform under the option Audit. This is an improvement based on feedback from Swiss Financial Institutions. To learn more about this feature, please register on the webinars and check the Participant Briefing.
- Submit your portfolios. After uploading and validating our portfolios on the Transition Monitor Platform, click on the tab Submit, select the files you want to submit, and confirm it. For real estate and mortgage portfolio the submission occurs directly at Wuest Partner website.
The PACTA Team wants to support participants of the PACTA Climate Test Switzerland 2022 throughout the entire duration of the project. For that, you can contact us by multiple means described in this section. We are looking forward to talking to you!
Contacting us through e-mail is the best way to receive complete and straightforward answers. The PACTA Tem has a full tracking system in place to make sure your e-mail is responded to and followed up.
- E-mail for Listed Equities & Corporate Bonds module questions: email@example.com
Note: The PACTA Team will reply to emails within a maximum period of 5 days. Complex questions that require more background explanation will be redirected to Helpdesks.
- E-mail for Real Estate & Mortgages module: firstname.lastname@example.org
The helpdesks will work as the one-on-one sessions between the participant and a PACTA analyst to clarify questions regarding the Listed Equities & Corporate Bonds module. Participants can book a slot through Calendly in the language of their preference (available in German, French, and English). The helpdesk is intended to tackle specific targeted questions outside the webinar from participants regarding their portfolios, how to upload them to the platform, methodology questions, etc. This is a direct channel between 2DII and participants to have questions answered as soon as possible.
You can book a helpdesk session from 21.02.2022 until 12.12.2022
|Helpdesk in English Language||Weekly||NEW LINK COMING SOON|
|Helpdesk in German Language||Bi-weekly||NEW LINK COMING SOON|
|Helpdesk in French Language||Monthly||NEW LINK COMING SOON|
To clarify questions regarding the Real Estate and Mortgage module, Wüest Partner is also available in English, German, French, and Italian at +41 44 289 90 00.
The goal of the Swiss PACTA Climate Test 2022 is to measure the alignment of both the entire financial sector and the individual participating institutions. The outcome can be used by the government or participating institutions to inform their climate finance strategies.
For the PACTA Climate Test, the Swiss Federal Office of the Environment (FOEN) acts as the host of this assessment and invites – together with the State Secretariat for International Finance (SIF) and supported by the associations – the relevant financial institutions, whose participation is voluntary.
PACTA compares the production plans of companies and refurbishment plans of Swiss buildings included in the portfolios with a pathway that is needed to limit maximum warming to 1.5° Celsius. It responds therefore directly to the Swiss Federal Council’s recommendation, that financial market players use comparable and meaningful climate compatibility indicators to help create transparency in all financial products and client portfolios. Switzerland rolls out this PACTA Climate test for the third time after 2017 and 2020. This monitoring framework allows the government, parliament, financial institutions, and the public to track the progress of the financial markets’ climate goal alignment.
Participants then upload their financial portfolios to a dedicated, secure, and confidential platform, which in turn delivers individual climate alignment results with anonymized peer comparisons. If required, participants are provided with dedicated NDAs for the equity and bond module, real estate analysis as well as mortgage analysis, to ensure confidentiality. Financial institutions can expect three different parts of analysis:
- Climate scenario analysis. The first building block of the PACTA tool is the climate scenario analysis which consists of the
- Equity and bond module: The analysis covers (i) the equity and corporate portfolio’s current exposure to climate-relevant sectors (power, coal mining, oil & gas, auto manufacturing, cement, steel, and aviation), as well as (ii) an analysis of the alignment of the investment and production plans of the companies in the portfolio with global climate goals.
- Real estate and mortgage module: Real estate and mortgage portfolios are analyzed, how aligned they are with the Swiss climate targets for the building sector.
- Stress-testing climate-related risks. The second part of the analysis involves a calculation of potential losses under ‘climate stress-test scenarios’, considering transition risks for power, automotive, and fossil fuel sectors. This stress-test for equity and corporate bond portfolios is an optional analysis in the Swiss Climate test.
- Impact Analysis. The third part is a qualitative survey of further climate actions by financial institutions. The objective of this analysis (made through a survey) is to identify – in addition to the quantitative analysis – financial institution’s climate-relevant measures within all asset classes (beyond the asset classes analyzed in the quantitative part) or outside asset management strategy, e.g. policy engagement. Both analyses are needed to help contextualize climate-relevant activities, find best practice as well as to inform the focus of future research with respect to the effectiveness of climate-relevant measures.
The project has three main outputs:
- First, a meta report will be created containing the results for the entire participating financial sector (only aggregated data and thus anonymous).
- Second, automatically generated, individual reports will be created for each participant. These reports consist of two parts, the interactive report, containing all results, and the executive summary, presenting the most important results on an aggregated level.
- Third, sector level reports will be created automatically and contain the anonymized and aggregated data by financial sector (pension funds, insurances, banks, and asset managers). These sector reports will be published by FOEN.
The two individual report documents are confidential, and there is no obligation to publish any information. It is the decision of the government to publish the meta and sector results and the individual participants’ decision to publish their individual results.
To partake in the project, you will have to organize your portfolio data in a specific format. Here you will find information about how to organize the data and templates to use as examples for the listed equities and corporate bonds module, and also for the real estate module.
Listed Equities & Corporate Bonds Portfolio data
Before participants upload their equity and corporate bonds portfolios, they are requested to indicate their peer group for the peer group comparisons (pension fund, bank, asset manager, or insurance).
The file for submitting the Listed Equities and Corporate Bonds portfolios is composed of 5 columns, in this specific order:
- “Investor.Name“: Name of your institution. It should be the same for all lines of this file.
- “Portfolio.Name“: You can report as many portfolios as you wish and name them as per your convenience. The results will be grouped by portfolio (each different name disclosed in this column is characterized as one single portfolio). This means that if you report 20 different portfolios, you will receive in the Transition Monitor Platform 20 different interactive reports. You will be able to group these results on the platform.
- “ISIN“: each line of this file will correspond to one asset ISIN. ISIN stands for International Securities Identification Number and is a code that uniquely identifies a specific security issue.
- “MarketValue“: amount allocated on that specific ISIN as per the defined time stamp (e.g. 31.12.2021 for 2021Q4)
- “Currency“: currency associated with the market value.
Real Estate & Mortgages data
This template file as Excel must be filled in for the determination of CO2 emissions from real estate for real estate and mortgage portfolios and uploaded on the link provided. Detailed instructions on how to fill it in can be found on the first spreadsheet.Click here to download the template for Real Estate & Mortgage in GermanClick here to download the template for Real Estate & Mortgage in French
Climate Action Survey
What are the climate actions taken by financial institutions to support GHG emissions reduction in and foster a climate-aligned transition of the real economy?
The qualitative survey aims to provide insights into climate change mitigation strategies of FIs and thereby complement the quantitative PACTA analysis. The survey will be made available in an interactive format on the Transition Monitor Platform from March on to be filled out by participants. The survey is entirely in English, participants can find the PDF of the survey and the translations in the files below.
To guarantee that your data is safe, a pre-signed NDA with 2DII (for equity and bond portfolio) and WP (for real estate portfolio) as well as a separate NDA just with the dedicated persons from Wüest Partner AG for the analysis of the Swiss mortgage portfolios are made available below and in the Transition Monitor Platform in German and French. 2° Investing Initiative does not require participants to sign this NDA in order to perform the test. However, this may be required by internal financial institutions’ policies.
Please note that we are not able to accept personalized or edited NDAs. We can only receive NDA in the predefined template.[NEW RELEASE] Non-disclosure Agreement for Listed Equities, Corporate Bonds & Real Estate Portfolios in English
Please contact email@example.com if you need a German or French translation of this NDA.
|February-March/2022||Onboarding webinars. Please check the section “Registration for Webinars” on this website to register yourself.
Helpdesk sessions are open to particiants.
|March-May/2022||Registration, data upload, and filling in the survey.
– Registration with a single e-mail address per institution on the Transition Monitor Platform with the Initiative Code PA2022CH as of 1st of March 2022.
– Signing sample NDAs
– Upload of data
– Automated data validation and feedback
– Fill out survey
|June-September/2022||Analysis of the portfolio data and preparation of the results by 2DII and WP.|
|September-October/2022 [expected]||Results available.
– Release of individual reports
– Publication of Meta-report
– Publication of sectoral reports [published by FOEN, www.bafu.admin.ch/climate-and-financial-markets]
|October-November/2022||Workshops dedicated to the PACTA Climate Test 2022 participants.|
|December/2022||End of Helpdesk sessions.|
In the Participant Briefing, you will find all the detailed information about the project, methodology, and how to participate. We highly encourage you to read this material carefully, especially when preparing the portfolio data, as it contains a step-by-step guide to make the process smooth.
About the PACTA Methodology
Listed equities & Corporate bonds module
The PACTA software measures the alignment of corporate bonds and listed equity with climate scenarios, such as the Paris Agreement-conform 1.5°C pathway, for the following 8 climate-relevant sectors: power, coal mining, oil & gas, auto manufacturing, cement, steel, and aviation. Therefore, PACTA identifies the financial portfolio’s exposure to high- and low-carbon technologies across the climate-relevant sectors. This assessment can be used to approximate the portfolio’s relative exposure to the economic activities that are impacted by the transition to a low-carbon economy. Further, PACTA then compares the extent to which companies’ current and planned assets, production profiles, investments, and GHG emissions are aligned with the benchmark scenario. As an output, PACTA provides sector-specific, technology-focused insights into how current 5-year plans of companies allocated to the portfolio compare to the 1.5°C-pathway or other climate scenarios.
Real estate & Mortgage module
The Swiss Real Estate and Mortgage Module is an open-source software based on R that was conducted by FOEN and developed by Wüest Partner AG. It allows financial institutions to measure the alignment of their Swiss mortgage and real estate portfolio with the climate target of the Swiss building sector to reach net-zero emissions in 2050. To take part in this analysis, you need to upload the location of the properties in your portfolio in form of the EGID (Swiss Federal Building Identifier) or an address. Other attributes like the heating system or square meters of the energy attribution area per building can either be filled in by the participants which have this data available or automatically be matched with the Swiss Building and Housing Register. Refurbishment plans can also be stated The CO2 emissions of each property as well as of the whole portfolio are then estimated and compared with peers and the emission pathway of the Swiss building sector.
Additional supporting documents
PACTA Aggregate Score
The Swiss Climate Scorecards aim to establish transparency of best practices in the Paris alignment of financial investments to encourage investment decisions that contribute to achieving climate goals.
An important component of this scorecard is the portfolio aggregate score, which aims to communicate externally on climate performance, as well as being a starting point for financial institutions and readers to stimulate questions at the sector and technology level.
In order to help financial institutions communicate their climate performance with a single score, RMI provided the PACTA Aggregate Score as part of the PACTA Climate Test 2022. For more information regarding the methodology used to calculate the score, please refer to the methodology document.
This project has received funding from the European Union’s Life program for the development of the software infrastructure and methodology, as well as from the Swiss Federal Office for the Environment (FOEN) for the enhancement of the methodology and its application to Switzerland.