FinanceMap’s portfolio analysis is based on the Paris Agreement Capital Transition Assessment (PACTA) tool. PACTA considers the production of the companies in the portfolio in four climate-critical sectors: automotive, electric power, oil & gas production, and coal mining. Forecasting production five years into the future, the tool compares the future production effectively owned by the portfolio to the forward-looking prescriptions of the IEA Net Zero Emissions by 2050 Scenario (NZE).
Fossil fuel production companies are defined as those with primary sector of operations in the up-, mid-, and/or downstream segments of fossil fuel production. Green companies are defined as companies having over 75% revenue deriving from Substantial Contribution to Mitigation activities under the EU Taxonomy.
Sector Paris Alignment scores for the sectors in which the fund has shareholdings. FinanceMap Paris Alignment analysis is limited to the automotive, upstream fossil fuel, and power sectors.