Warming stripes are the new black
2° Investing Initiative partners with BlackRock to make its first foray into global fashion
Spotted in Davos this week sporting the limited edition 2° Investing Initiative-brand scarf (inspired by Professor Ed Hawkins’ warming stripes), BlackRock CEO Larry Fink has embraced the objective of aligning investment strategies with climate goals — a concept introduced by 2°ii in 2012.
Along with its letters to clients and CEOs, BlackRock released “To what degree?“, the 2°C scenario analysis of US insurers’ investment portfolios, based on our PACTA methodology and BlackRock risk modeling.
“The 2° Investing Initiative’s PACTA methodology provided us with critical insights into measuring the exposure to insurers’ portfolios to the 2-degree scenario. Their data will not only enable investors to better understand climate-related threats, but also refine strategies to help manage them. We are proud to have partnered with 2°ii to produce To what degree?” – Ashley Schulten, co-author of the report and Managing Director, Head of Responsible Investing for Global Fixed Income at BlackRock.
Notably, BlackRock built on the analysis introduced by the California Insurance supervisor in 2018, which faced push-back from the industry at the time.
“Having initiated the first comprehensive analysis of climate-related physical and transition risks to insurers’ investments, I applaud BlackRock’s decision to use the PACTA methodology to assess US insurers’ portfolios. I encourage other asset managers, insurance companies, and regulators to follow their example, using the 2° Investing Initiative’s tool to better analyze and consider the growing risks associated with climate change.” – Dave Jones, former California Insurance Commissioner and 2°ii board member.
With this partnership, BlackRock joins the club of PACTA users which includes 900+ asset managers, asset owners and banks, as well as leading supervisors (Bank of England, EIOPA, etc.).
Read the BlackRock report here and the overview of PACTA uptake here.