The financial institutions will utilise the carbon accounting standard developed by PCAF and it represents the launch of the first-ever global carbon accounting initiative available for use by financial institutions anywhere in the world. The open-access, free-of-charge PCAF initiative allows banks and investors all across the world to assess the GHG emissions of their portfolios on the path to aligning their business strategies with the Paris Climate Agreement.
Keith R. Mestrich, president and chief executive officer of Amalgamated Bank, said: “The effects of the climate emergency are tangible. There is an urgent need to address climate change, and financial institutions have a critical role to play in the world’s efforts to limit global warming and fulfill the obligations of the Paris Agreement. The money we invest can make or break climate solutions--from clean energy and energy efficiency to forest protection and public transit. The problem is that it’s tough for institutions to know what their impact is because their activities and portfolios are very complex. By standardizing the way we measure emissions, it becomes possible to act to reduce it. We are inviting financial institutions from around the globe to join these efforts.”
Peter Blom, CEO, Triodos Bank (The Netherlands), chair of The Global Alliance for Banking on Values (GABV): “There is no time to lose to address the climate emergency. Banks must act now on their responsibility to limit global warming to within safe limits. PCAF enables the financial industry to take meaningful, collective, and global action to combat climate change. Knowing the emissions of their loans and investments means banks can be transparent with their stakeholders. They can better understand and manage the risk of the climate emergency for their business. And, crucially, they can make informed decisions that limit the negative impact, and increase the positive impact, of their financial decisions on the climate. PCAF is a concrete, scalable initiative by the industry for the industry, that helps financial institutions to connect their activity with the Paris Climate Goals. It’s relevant for all banks, large or small, wherever they are in the world.”
Kees van Dijkhuizen, CEO of ABN AMRO, said: “PCAF is tried and tested in the Netherlands, providing value to financial institutions, their clients, and other climate initiatives. Now, PCAF is going global. Our experience in the Netherlands is that measuring and tracking climate impact drives concrete action and change. At ABN AMRO, PCAF helped us understand that our 800,000 residential mortgages are one of the areas that have the highest carbon impact. With that knowledge, we now promote mortgages that incentivize customers to take energy efficiency measures. Climate action like that is not only good for business -- but is a duty to our clients, the planet, and to future generations.”
Since its founding at the 2015 Paris Climate Summit, PCAF institutions have worked together to jointly develop open-source methodologies to measure the carbon footprint of their investments and loans. Since 2018, PCAF institutions have quantified the emissions impact associated with these assets for a total of $1.2 trillion USD.
For further information, please contact:
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Notes to editor
About the Partnership for Carbon Accounting Financials
PCAF was founded by fourteen Dutch financial institutions as the Platform for Carbon Accounting Financials (PCAF) via a Dutch Carbon Pledge at the Paris Climate Summit in 2015. PCAF institutions work together to jointly develop open-source methodologies to measure the carbon footprint of their investments and loans. By measuring and disclosing this information, PCAF institutions develop effective strategies to contribute to a low carbon society. PCAF is organized by a steering committee comprised of representatives of ABN AMRO, Amalgamated Bank, ASN Bank, Global Alliance for Banking on Values (GABV) and Triodos Bank.
About Triodos Bank
Founded in 1980, Triodos Bank has become a frontrunner in sustainable banking globally. As an independent bank that promotes responsible and transparent banking, it does not see any conflict between a focus on people and the planet and a good financial return. Instead it believes that they reinforce each other in the long-term.
Triodos Bank has banking activities in the Netherlands, Belgium, the UK, Spain, Germany and France as well as Investment Management activities based in the Netherlands but active globally. Triodos Bank co-founded the Global Alliance for Banking on Values (GABV), a network of 54 sustainable banks. Together these banks want to grow sustainable banking and its impact on the real economy substantially.
Triodos Bank UK Ltd is a wholly owned subsidiary of Triodos Bank NV. Registered Office: Deanery Road, Bristol, BS1 5AS. Registered in England and Wales Company No. 11379025. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 817008. VAT reg no 793493383.