Bank of America to measure carbon impact of loans and investments
The Partnership for Carbon Accounting Financials (PCAF) has announced that Bank of America has joined its initiative to develop a common framework to assess financed emissions.
The Partnership for Carbon Accounting Financials (PCAF) has announced that Bank of America has joined its initiative to develop a common framework to assess financed emissions.
By joining the PCAF, Bank of America becomes the largest and most diversified global financial institution to participate in this collaboration.
Last year, the PCAF was launched globally. The goal of PCAF is to develop a global accounting standard to be utilized by the financial sector, providing more transparency to stakeholders.
PCAF participants work together to jointly develop the Global Carbon Accounting Standard for the financial industry to measure and disclose the greenhouse emissions of its loans and investments.
By doing so, PCAF participants take the first step required to assess climate-related risks, set targets in line with Paris Climate Agreement and develop effective strategies to decarbonize our society.
The company has been working with the PCAF Core Team over the last several months and will continue to be part of the Core Team, providing its financing and risk management expertise to support the development of a consistent methodology for assessing, measuring and disclosing greenhouse gas (GHG) emissions attributed to financing activities.
Anne Finucane, Vice Chairman at Bank of America, said: “As a global financial institution, and as an industry, we have a critical role to play in accelerating the transition to a low-carbon, more sustainable economy.”
“By joining PCAF, we are helping to drive a consistent framework for institutions to measure financed emissions, as well as providing a useful tool in the management of these emissions, which is a critical component when addressing climate change. We look forward to collaborating with other financial institutions and partners on this important effort.”
With nearly 70 banks and investors from five continents, PCAF’s member financial institutions represent more than $9 trillion (USD) in assets. Through this collaboration, the initiative will develop a consistent methodology for financed emissions, or the disclosure of GHG emissions in loans and investments made by firms in the financial sector.
“Measuring the carbon impact of loans and investments is a fundamental building block for further climate action,” said Ivan Frishberg of Amalgamated Bank and a member of the PCAF Steering Committee. “Counting carbon may seem like a purely technical thing, but we measure so that we can manage, and Bank of America is showing its seriousness in this work through its active collaboration with PCAF.”
Last week, Morgan Stanley also joined the Partnership for Carbon Accounting Financials (PCAF) and committed to measuring and disclosing the carbon emissions of its loans and investments.
