Climate Change Commitment and PCAF

In early 2019, Triodos Bank in the Netherlands and Amalgamated Bank in the US actively led an initiative for Global Alliance for Banking on Values members to play a leading role in the financial sector with a commitment to measure and report the carbon footprint of their loans and investment portfolios as a necessary step to align their financing with Paris Agreement targets (see Figure 2).

Figure 2 Relevance of Carbon Accounting to Climate-related Initiatives Source: Navigant, Supporting Partner, Partnership for Carbon Accounting Financials.

The Climate Change Commitment, announced in Vancouver during the GABV’s 10-year anniversary, became a stepping stone for the globalisation of carbon accounting in the financial sector. It builds on the methodologies developed by the Platform for Carbon Accounting Financials (The Netherlands) and Platform for Carbon Accounting Financials (North America). ABN AMRO, Amalgamated Bank, ASN Bank, the GABV and Triodos Bank, with funding from the Hewlett Foundation, launched the Partnership for Carbon Accounting Financials in September 2019. The global consultancy Navigant, responsible for implementation and technical support, is guiding the work of core regional technical working groups in the development of a global harmonised approach to assess and disclose the greenhouse gas (GHG) emissions associated with loans and investments. To date, 57 financial institutions with US$3.5 trillion in combined total financial assets are committed to the Partnership. The GABV has taken a co-leading role and sits in the Steering Committee of the Partnership. GABV members in Latin America, Europe and North America are active in the core regional technical working groups.