FAQ
Regarding what PACTA does
Last updated
Regarding what PACTA does
Last updated
The PACTA methodology covers eight of the most carbon-intensive sectors in the economy (i.e., the sectors most exposed to transition risks) – oil and gas, coal, power, automotive, cement, aviation, and steel (the “PACTA sectors”). Together, they are responsible for around 70% of all CO2 emissions. In each sector, PACTA focuses on the part of their value chain with the highest contribution in terms of CO2 emissions. For example, in the oil and gas sector, the focus is on upstream activities related to production, while in the power sector, the focus is on power generation and related sources of energy. The figure below shows the value chain of each sector. The shaded areas are the parts of the value chain analyzed in PACTA.
The tool has a global coverage. The physical asset data bases have a global coverage and provide regional information such as country, state and in some cases even latitude and longitude data for each asset. The regional granularity of the scenarios differs for each sector depending on the regionality of the sector, e.g. automotive has only a global target as vehicles are shipped around the world, where as the power sector has regionality down to the country level. The assessment is performed at the most regional level and then aggregated to create global results.
The PACTA tool measures alignment of your financial portfolio with multiple climate scenarios. Results can indicate exposure to transition risks. Note however that the tool itself does not quantify financial risk or losses.
