Some of the UK’s top banks have joined the Partnership for Carbon Accounting Financials (PCAF), an industry-led collaboration to standardise carbon accounting across the financial sector.
Initial members of the UK coalition, which will promote measurement and disclosure of carbon emissions in the sector, include NatWest Group, Lloyds Banking Group, CDC Group, Investec plc and Nationwide Building Society.
PCAF UK members will focus on applying the partnership’s methodologies for measuring financed emissions in the country, sharing best practice and working on data quality improvements.
Giel Linthorst, executive director of PCAF Secretariat, said: “The UK has always been a leader in the financial industry. I’m very pleased to see that this PCAF UK coalition is similarly taking a leading role as well.
“Stronger and national collaboration is crucial within PCAF to enable PCAF participants to improve their data quality and steer their portfolio in line with the Paris Agreement.”
Mark Carney, the Prime Minister’s finance adviser for COP26 (UN Climate Change Conference) and observer to PCAF, said: “To achieve net zero we need a whole economy transition – every company, every bank, every insurer and investor will have to adjust their business models, develop credible plans for the transition and implement them.
“For financial firms, that means reviewing more than the emissions generated by their own business activity. They must measure and report the emissions generated by the companies they invest in and lend to.”
He added: “PCAF’s work to standardise the approach to measuring financed emissions is an important step to ensuring that every financial decision takes climate change into account.”