2° Investing Initiative are proud to present our new report, ‘Out of The Fog’.
Dear Friends and Members of 2° Investing Initiative,
This week, the Swiss government released the results of a 2°C scenario analysis of the Swiss pension fund and insurance sector, conducted by the 2° Investing Initiative. The results formed part of a pilot project initiated by the Swiss Federal Office for the Environment and the State Secretariat for International Financial Matters and endorsed by both the Swiss Insurance Association and the Swiss Pension Fund Association. Investor participation was both voluntary and free of charge.
The results suggest Swiss pension funds and insurance are on a 4°C-6°C pathway across most technologies. Strikingly, results differed widely across participating investors, with wide variations in exposures to transition technologies and sectors. Details across technologies, including trends in the global stock market and bonds market can be found in the report (Link). Summaries of the report can also be found in French and German on the project website (German and French)
66 Swiss pension funds and 16 Swiss insurance companies participated in the project, representing roughly two-thirds of assets under management. Focused on 2°C scenario analysis for the listed equity and corporate bonds portfolios, nearly CHF 300 billion was analyzed in the pilot.
Each participating investor received their own personalized and tailored 25-page 2°C scenario analysis report in either French, German, or English. The project thus represents a first step in the implementation of the FSB TCFD recommendations, with the Swiss market taking leadership on 2°C scenario analysis.
As always, we look forward to hearing your thoughts, questions, and comments.
Best wishes and happy reading,