FAQs

FinanceMap.org is an online, publicly available platform that looks at the asset management sector through a climate lens, examining portfolios, investor-engagement processes, and shareholder resolutions. The twin objectives are to give asset owners and other key stakeholders insights into how the asset management sector is performing on climate change and to drive improvement within the sector by providing benchmarking information.

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FinanceMap applies the market-leading Paris Agreement Capital Transition Assessment (PACTA) methodology managed by 2 Degrees Investing Initiative to a universe of 70,000 listed funds to assess the alignment of portfolios with the Paris Agreement. The platform also provides metrics on investor engagement with companies on climate, using a methodology developed by the FinanceMap team in consultation with leading global asset managers. It also gathers metrics on the filing and voting behavior of asset managers on climate-relevant shareholder resolutions. The methodology is benchmarked against the 2020 UK Stewardship Code published by the UK's Financial Reporting Council.

FinanceMap is produced and managed by London-based climate think tank InfluenceMap, in cooperation with partner 2 Degrees Investing Initiative 2 Degrees Investing Initiative. The FinanceMap team works closely with asset owners and managers and financial data providers to ensure FinanceMap is accurate and representative of reality. FinanceMap’s work is funded by EIT Climate-KIC and the KR Foundation.

FinanceMap assesses over 70,000 listed funds (and their constituent holdings). These funds are managed by fund managers, who in turn are often subsidiaries of large asset management groups (e.g. iShares UK Equity Index Fund is operated by BlackRock Investment Management UK Ltd which is part of the global BlackRock Group). As such, an asset manager’s portfolio is defined as the aggregated holdings of all the funds managed directly by the asset manager or by its wholly-owned subsidiaries. This research considers funds as collective pools of capital, managed by investment professionals and traded on markets or offered to institutional/other investors in a regulated manner.

"FinanceMap’s portfolio alignment metric is based on the Paris Agreement Capital Transition Assessment (PACTA) methodology. This method considers the production of physical assets controlled by the companies in the portfolio. It covers production in sectors with significant climate risk: auto, electric power, and fossil fuel production. PACTA compares the assets’ production evolution over a five-year forward-looking timespan to a Paris-aligned evolution of similar assets’ production as prescribed by IEA scenarios in order to assess Paris alignment at a specific technology level. FinanceMap then implements a method to move from these technology-level results to the Sector and Portfolio Paris Alignment (PA) Scores. Each Sector PA Score is a weighted average of the technology-level alignments for every technology within a sector. The technology deviation results are weighted by the product of the portfolio’s exposure to each technology and the technology’s importance to global emissions as determined by the IEA. Similarly, the Portfolio score is a weighted average of the sector-level alignments, weighted by the product of the portfolio’s exposure to the sector and the sector’s current contribution to global emissions."

FinanceMap analysis uses the IEA’s Beyond 2 Degrees Scenario (B2DS), which provides a pathway for a 50% chance of limiting warming to 1.75° C. With respect to a temperature target, the B2DS is the most ambitious available from the IEA. While there are other climate scenarios with more ambitious temperature targets, the IEA’s scenarios are the most granular and span the broadest number of sectors, allowing for a more robust analysis.

A fund’s Paris Alignment score is simply calculated on the basis of the shareholdings of the fund. An asset manager’s aggregate Portfolio Paris Alignment is analysed by compiling the holdings of all its managed funds. An aggregate portfolio is created by adding together all the shareholdings of these funds. This aggregate portfolio is then scored on its Paris Alignment. The asset manager’s aggregate Portfolio Paris Alignment is therefore not directly calculated as a weighted average of its funds’ Paris Alignment scores.

This research uses the most recent fund shareholding data available from the Refinitiv Lipper database. Where quarterly data is unavailable, the system carries forward the shareholdings from the last disclosure.

In practice, this means that FinanceMap's holdings data derives from a number of disclosure sources, which may be mandatory (e.g. US SEC 13-F filings applying to asset managers with more than US $100mn under management) or voluntary (e.g. the Government Pension Fund of Norway's portfolio disclosure). These disclosures vary by region and shareholder type.

The current FinanceMap research focuses on listed equity holdings. The FinanceMap team intends to incorporate analysis of corporate bond holding data in future releases.

FinanceMap's methodology to measure the engagement process on climate was developed in consultation with several of the world's leading asset managers and uses key aspects of the UK Financial Reporting Council's 2020 Stewardship Code. The Stewardship Code was chosen to benchmark engagement quality as it provides an ambitious framework and detailed definitions of what constitutes effective engagement. FinanceMap defines the term ‘engagement’ as referring to all investor actions undertaken to influence the management strategy of the companies they own including: private communications with corporate management and appointed advisors; questions at AGMs/other company meetings; comments on the company in the media or public fora; escalation and the shareholder resolution process (filing, voting behaviour). FinanceMap’s methodology breaks the engagement process down into a set of sub-activities and looks for evidence associated with these across publicly available data sources (company disclosures, financial filings, CDP and AODP analysis). Sub-scores are available for these sub-activities: for example if a user wishes to isolate an asset manager's behavior on shareholder resolutions.

Climate-relevance categorization of shareholder resolutions is based on the IPCC’s Special Report on 1.5°C and its concluded need for “rapid and far-reaching transitions in land, energy, industry, buildings, transport, and cities.” FinanceMap scored voting on any resolution where the intent and likely outcome is consistent with this IPCC stated need. For example, a resolution requesting a utility company to increase its renewable energy production would be considered "climate-relevant". A resolution where any climate-impact would be indirect or unclear, for example, requesting a company to disclose on ESG, is not classed as "climate-relevant". The voting data is drawn from asset managers’ websites and disclosures to the US Security Exchange Commission (SEC) and to InfluenceMap directly. Resolutions in the following categories were included in the analysis: CO2 Emissions Disclosure; CO2 Emissions Target Setting; Climate Risk/ Scenario Analysis; Renewable and Energy Efficiency; Deforestation; Climate Policy Lobbying; Disclosure of Voting on Climate-related Resolutions.