23 Sep Dutch climate initiative receives international acclaim
Fifty international financial institutions from South Africa to Canada join the originally Dutch climate initiative Partnership for Carbon Accounting Financials (PCAF). The total assets under management of the international parties amount to € 2.6 trillion. The affiliated financial institutions are committed to calculating and reporting on the climate impact of their portfolio.
The Partnership for Carbon Accounting Financials Global, abbreviated to PCAF Global, consists of banks, insurers, pension funds and administrators from many different countries. From Mongolia to Ecuador and from South Africa to Canada.
Climate impact financial sector
Financial institutions have an impact on the climate mainly through their investments and financing. To reduce that impact, knowledge about it is essential. Measuring the climate impact of the investment portfolio and financing is a first step. The PCAF methodology provides insight into both the positive and negative impact of financial institutions.
With this knowledge, financial institutions can draw up effective strategies to reduce exposure to climate risks and to contribute to the Paris climate goals. In this way, they can take the CO2 impact of companies into account in their investment and financing decisions. In addition, they can enter into a dialogue with companies in which they invest or that they finance.
The goal of PCAF Global is to standardize the greenhouse gas emissions calculation of loans and investments worldwide over the next three years. The platform also wants to grow to more than a hundred financial institutions.
Dutch origin climate initiative
PCAF is a Dutch initiative. During the Paris climate summit in 2015, ASN Bank, part of de Volksbank, took this initiative to map the CO2 impact of their balance sheet. Fourteen Dutch financial institutions joined. The PCAF methodology must ensure that portfolios of financial institutions have a low CO2 impact. An impact that is consistent with the Paris climate treaty. “ASN Bank took the initiative to set up PCAF Nederland in 2015 and is extremely pleased that this initiative is now being followed so enthusiastically worldwide,” said Arie Koornneef, chairman of the board of ASN Bank.
Collective, global promotion
“With PCAF, the financial sector can take meaningful, collective and global action to combat climate change. Knowledge of the emissions from their loans and investments means that banks can actively manage the climate risks in their balance sheets. They can make informed decisions that limit the negative impact and increase the positive impact of their financial decisions on the climate, ”says Peter Blom, CEO of Triodos Bank and chairman of the Global Alliance for Banking on Values (GABV).
One of the banks that took action as a result of PCAF is ABN AMRO. CEO Kees Dijkhuizen : “At ABN AMRO, PCAF has let us understand that our 800,000 residential mortgages are one of the areas with the greatest CO2 impact. With that knowledge, we now promote mortgages that encourage customers to take energy efficiency measures. Such a climate action is not only good for business, but is also a duty for our customers, the planet and future generations. ”