The institutions view focuses on sources of finance for the low-carbon transition. It tracks institutions’ efforts to make investments and overall organizational practices consistent with the achievement of the Paris goals.
Each category of institution (asset managers, banks, etc.) is assessed on three dimensions of the response to Paris goals:
A. Targets: signal intent to respond, potentially resulting in future integration decisions and flows. This dimension tracks indicative qualitative commitments and quantitative targets adopted to address climate change, as well as membership in coalitions or initiatives that may influence future capital alignment.
B. Integration: measures how climate considerations are factored into decision-making processes, potentially resulting in future flows. This dimension looks at concrete qualitative changes to policies, governance, and investment approaches.
C. Flows: track finance allocated to climate solutions via investment into productive assets, activities and transactions in capital markets. This dimension relies on the measurement of quantitative changes in stocks and flows of relevant finance (both low and high emissions).
Each dimension is measured based on a range of indicators, which in turn are generated from a large number of datasets. See our methodology for detail on how each dimension is assessed.
There are two levels under which the above information is displayed in the dashboard:
1. Overview. This level enables comparison between institution categories on specific metrics such as 1) the number of institutions joining the Paris race or the total assets they represent, 2) Paris response scores (breakdown and averages) for the Targets dimension, 3) Paris response scores (breakdown and averages) for the Integration dimension, 4) investment trends and portfolio alignment for the Flow dimension.
2. Institution categories, displaying a full range of metrics for each group. This includes the number or total assets of institutions responding to climate change, the evolution, composition, and key drivers (in terms of specific indicators) of scores for Targets and Integration, and investment trends and portfolio alignment measuring Flows.
Average scores for Targets and Integration also reveal the performance of early leaders, defined as individual institutions in each category that score higher than their peers and therefore help to set the bar for what is achievable today.