PACTA Climate Test Switzerland 2022

The sector reports are regular PACTA interactive reports aggregated to the peer group level. In this sense, it is possible to see exposure and alignment metrics of Banks, Asset Managers, Insurance companies, and Pension Funds sectors.

Insurance Companies

Pension Funds

Asset Managers

Banks

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.

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:

1. Registration with a single e-mail address per institution on the Transition Monitor Platform (https://platform.transitionmonitor.com/) with the Initiative Code PA2022CH.
2. 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.
3. 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.
4. 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.
5. 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!

E-mail

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: pactacop@2degrees-investing.org

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: pacta@wuestpartner.com

Helpdesks

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

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:

1. 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.
2. 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.
3. 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.

Click here to download the template for Listed Equities & Corporate Bonds

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.

Survey PDF in English

Survey PDF in German

Survey PDF in French

Non-disclosure Agreement

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 pactacop@2degrees-investing.org if you need a German or French translation of this NDA.

Non-disclosure Agreement for mortgage module in German

Non-disclosure Agreement for mortgage module in French

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.

Participant Briefing in English

Participant Briefing in German

Participant Briefing in French