Banks launch framework to track carbon footprint of investments

By Valerie Volcovici UNITED NATIONS (Reuters) - Over 50 banks and other financial institutions representing nearly $3 trillion in assets announced on Monday they will assess and disclose the impact their loans and investments will have on climate change using common carbon accounting standards. They launched the Partnership for Carbon Accounting Financials (PCAF), an industry-wide effort to standardize how companies measure the carbon footprints of their investments, at a time when activists and stakeholders are pressuring the financial sector to pull back from heavily polluting fossil fuel projects

Reuters September 24, 2019 00:07:55 IST
Banks launch framework to track carbon footprint of investments

Banks launch framework to track carbon footprint of investments

By Valerie Volcovici

UNITED NATIONS (Reuters) - Over 50 banks and other financial institutions representing nearly $3 trillion in assets announced on Monday they will assess and disclose the impact their loans and investments will have on climate change using common carbon accounting standards.

They launched the Partnership for Carbon Accounting Financials (PCAF), an industry-wide effort to standardize how companies measure the carbon footprints of their investments, at a time when activists and stakeholders are pressuring the financial sector to pull back from heavily polluting fossil fuel projects.

"Knowing the emissions of their loans and investments means banks can be transparent with their stakeholders," said Peter Blom, CEO of Dutch bank Triodos. "They can make informed decisions that limit the negative impact, and increase the positive impact, of their financial decisions on the climate.”

The banks hope the framework will become a benchmark for the financial sector as institutions and banks try to meet the goals of the Paris Climate Agreement.

It has been adopted by several Dutch banks, including ABN AMRO, which found out by using the PCAF framework that residential mortgages were one of the areas of highest carbon impact. The bank used this information to promote mortgages with incentives for energy efficiency, Kees van Dijkhuizen, CEO of ABN AMRO, said in a statement.

“Our experience in the Netherlands is that measuring and tracking climate impact drives concrete action and change," he said.

(Reporting by Valerie Volcovici; Editing by David Gregorio)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.