The Partnership for Carbon Accounting Financials (PCAF) has launched a consultation on the first global carbon accounting standard, which offers financial institutions “a common set of robust carbon accounting methods to assess and track the emissions financed by loans and investments”.
US banking heavyweights Morgan Stanley, Bank of America and CitiGroup have all signed up to PCAF in the last couple of weeks, committing to measure and disclose greenhouse gas emissions associated with their lending within three years as required by the initiative – with the ultimate goal being aligned with the Paris Agreement.
Last week, NatWest (formerly RBS) became the first major UK bank to join the initiative.
PCAF was created in 2015 by a group of Dutch financial institutions under the auspices of the Dutch central bank, DNB.
In 2018, it was extended to North America and scaled up globally in 2019. Since its international expansion, PCAF now boasts a …