What is this regulation about?
The Partnership for Carbon Accounting Financials (PCAF) is a global initiative that provides a standardized framework for financial institutions to measure and disclose the carbon emissions associated with their loans and investments. It aims to increase transparency and accountability in the financial sector’s role in climate change.
How does this impact my business?
Although PCAF is voluntary, it is widely adopted by financial institutions worldwide. Joining PCAF can enhance your reputation, attract sustainability-focused investors and align your business with global climate goals. However, it requires effort to accurately measure and report the carbon footprint of your financial activities, and companies are advised to seek guidance from PCAF experts.
What can I do to get started?
To adopt PCAF, financial institutions should:
- Familiarize themselves with the PCAF methodology and guidelines.
- Quantify their financed emissions in line with the standard
- Implement systems to track and report emissions data.
- Engage with stakeholders to communicate their commitment to carbon accounting.
- Join the PCAF initiative to access resources, guidance and industry support.
