17 Dutch financial institutions have issued a report titled Accounting CHG emissions and taking action: harmonised approch for the financial sector in the Netherlands, outlining developments in carbon accounting via the Partnership for Carbon Accounting Financials (PCAF) at the COP25 meeting in Madrid - including asset classes added to the methodology and new tools for users.
Dutch institutions with assets of some €2trn are using the PCAF methodology, with many publicly disclosing their associated carbon footprints.
Collectively, they have developed a methodology for calculating carbon emissions of financial institutions' loans and investments.
Commenting on the report, PCAF chair Piet Sprengers (ASN Bank), said: "PCAF plays an important role in allowing the financial sector to make the transition to a positive, low carbon future. By making their CO2 emissions transparent, financial companies are taking a very important step to ultimately align their portfolio with the Paris Climate Agreement. Today's report shows that PCAF provides a simple and powerful way to start measuring and reporting on their climate impact. We call on the financial sector to start assessing the emissions of their loans and investments, to reduce their finance of fossil assets and actively support the transition to a low carbon economy of the future."
PCAF started in the Netherlands in 2015, when ASN Bank took this initiative during the climate summit in Paris. Eleven Dutch financial institutions joined this first effort of its kind by the financial industry, for the financial industry. PCAF has now become a worldwide standard. To date, 57 financial institutions globally, representing assets of $3.5trn, have joined and committed to measure and report on their CO2 emissions. PCAF is seeking to grow the number to 100 institutions globally within three years.
Next steps in developing the Partnership includes using insights from assessing green house gas emissions to set science based targets, to ensure financial institutions contribute to keeping the global temperature increase within "safe levels".