The industry-led Partnership for Carbon Accounting Financials, a global partnership consisting of 70 banks, asset managers, and insurance companies with nearly $9 trillion in assets, released a consultive draft for a Global Standard to measure and disclose the GHG emissions financed by loans and investments. The “Global Carbon Accounting Standard for the Financial Industry” responds to the increasing desire from banks and investors worldwide for a “clear and transparent set of rules to measure their financed emissions to assess risk, manage impact, meet the disclosure expectations of important stakeholders, and assess progress to global climate goals.” The PCAF standards aim to be an “essential and crucial component of the broader climate finance ecosystem,” by helping firms to measure their finance emissions and enabling them to “take informed actions to decarbonize their portfolios in order to minimize climate risks and maximize opportunities.”
The Standard will assist in the measurement and disclosure of GHG emissions associated with six asset classes, by providing detailed guidance for each asset class to calculate the emissions resulting from activities in the real economy that are financed through lending and investment portfolios. The six asset classes are: Listed equity and bonds; Mortgages; Business loans; Motor vehicle loans; Project finance; Commercial real estate.
The read the draft Standard and complete a feedback survey, click here.