Assessing Readiness for the Low-Carbon Transition

This report analyzes the climate alignment of Peruvian pension fund investment portfolios, as part of a joint project by 2DII and the Peruvian Responsible Investment Program (Programa de Inversión Responsable/PIR).

Key Findings


The portion of the corporate bond portfolio analyzed by PACTA is highly concentrated in the energy and oil and gas sectors, which represent 71% and 18% respectively. About 50% of the energy is generated by hydroelectric power, which exceeds the expectations of the Sustainable Development Scenario. However, efforts must still be made to increase the share of energy generated by renewables.


Although the equity portfolio is more diversified than the corporate bond portfolio, the energy sector also leads the way, accounting for 38% of investments in PACTA sectors, followed by cement (24%) and oil and gas (17%). The analysis also revealed that more than 80% of investments in the automotive sector are made through investments in mutual funds.

To carry out the study, 2DII applied the Paris Agreement Capital Transition Assessment (PACTA) climate scenario analysis methodology to the portfolios of the five Peruvian pension funds, measuring their (mis)alignment in seven climate-relevant sectors. This report contains an aggregate analysis at sector level and identifies potential exposure to transition risks, as well as opportunities for the pension funds in the transition to a low-carbon economy. In addition to this report, each pension fund has received individual results with company-level information, to help them better understand where their climate exposures are coming from, and as a basis for engaging with companies or setting strategies to align with climate scenarios.

To help mitigate their transition risk exposure and maximize opportunities associated with the net-zero transition, 2DII recommends several options for the pension funds, such as carrying out individual or collective engagement actions to persuade companies to integrate climate change in their business strategies.

This study is the latest in the PACTA Coordinated Projects, a dedicated program in which 2DII works with governments, supervisors, and industry associations to assess national financial sector alignment with climate goals.

About our funder: This report is part of a project entitled “Strengthening capabilities on climate action for investors of the Peruvian financial ecosystem, within the framework of the Green Financing Roadmap,” funded by UK PACT. This work reflects the authors’ views only, and the funder is not responsible for any use that may be made of the information it contains.