The Partnership for Carbon Accounting Financials – PCAF is a global partnership of Financial Institutions and was launched in 2015. It has developed an approach to access and disclose GHG emissions related to each Financial Institutions loans and investments.
PCAF has launched a standard for the Financial Industry that would support the transition toward a net-zero emissions economy. The Global GHG Accounting and Reporting Standard for the Financial Industry is a guidance for the Financial Institutions to measure and disclose the GHG emissions associated with six asset classes:
- Listed equity and Corporate Bonds
- Business loans and Unlisted Equity
- Project Finance
- Commercial Real Estate
- Mortgages
- Motor Vehicle Loans
The Financial Institutions should assess climate risks in line with the Task Force on Climate-related Financial Disclosures (TCFD) requirements and should issue reports to stakeholders such as the Carbon Disclosure Project (CDP).
The Standard was build on the GHG Protocol and conforms to the requirements set for Corporate Value Chain (Scope 3) Accounting and Reporting Standard, for Category 15 investment activities.
A list with the Financial institutions that have committed to measure and disclose the greenhouse gas emissions associated with their portfolio of loans and investments can be found here