In 2018, the 2° Investing Initiative developed the Paris Agreement Capital Transition Assessment (PACTA ), a freely accessible methodology. It calculates the extent to which corporate and industrial investment spending behind a given equity, bond or loan portfolio is aligned with different climate scenarios. The software, unique to date, draws on a large climate-related financial database that includes more than 30,000 securities, 40,000 companies and 230,000 energy-related tangible assets. Nearly 900 financial institutions in over 69 countries and with more than $61 trillion in assets under management have used the tool to analyse their portfolios.

The methodology focuses on energy-intensive sectors, which on average emit around 80% of a portfolio's CO2 emissions.

More on the methodology and applications are available at transitionmonitor.com.