# Parameters

While the core methodology is set, there are several parameters that can be set to answer specific research questions. The model parameters that can be set include:

* **Scenarios** that reflect specific decarbonization transition pathways and assumptions about the development and relevance of different technologies over time. The PACTA tool is scenario agnostic, i.e. any scenario that offers a technology production/capacity breakdown of climate-relevant sectors can be used.&#x20;

{% content-ref url="../climate-scenarios" %}
[climate-scenarios](../climate-scenarios)
{% endcontent-ref %}

* **Accounting principle** (or Allocation Method) used to allocate a portion of the capacity and production of each company to the portfolio. This reflects whether the assessment is of the portfolio’s contribution _toward_ the transition (ownership approach) or the portfolio’s _exposure_ to transition risk (portfolio weight approach).

{% content-ref url="parameters/accounting-principles" %}
[accounting-principles](parameters/accounting-principles)
{% endcontent-ref %}

* **Scenario geography** to show the portfolio’s alignment in different regions based on location of physical assets, highlighting the most relevant regions to act on.

{% content-ref url="parameters/scenario-geography" %}
[scenario-geography](parameters/scenario-geography)
{% endcontent-ref %}

* **Equity market** to show the portfolio’s regionally specific alignment based on company domiciles, highlighting how geographic investment mandates impact alignment results.

{% content-ref url="parameters/equity-market" %}
[equity-market](parameters/equity-market)
{% endcontent-ref %}

* **Benchmarks** that place the performance of the portfolio in context include market benchmarks or financial index portfolios. The results for these benchmarks are calculated using the PACTA methodology and compared to the portfolio under the same set of parameters. &#x20;
