PCAF is supported by Navigant, a global consultancy firm with a team specialized in carbon accounting for financials. Navigant serves as the Secretariat of PCAF and provides technical support to PCAF members in the development and implementation of the global carbon accounting standard.
If you have questions about PCAF that are not answered in the Frequently Asked Questions below, feel free to contact the following experts from Navigant.
Giel Linthorst leads all Navigant activities in the field of sustainable finance. Over the past 10 years, Giel has supported various financial institutions on carbon accounting of their loans and investments. Giel facilitates the work of the PCAF Steering Committee and provides technical advise to PCAF’s core team.
Preeti Srivastav works at Navigant as an advisor to senior leadership of corporate & financial sector on sustainability strategy & implementing climate action. Preeti facilitates the implementation of PCAF communications strategy and manages PCAF stakeholder and partner relationships.
Angélica Afanador works at Navigant advising financial institutions in assessing the climate impact of their loans and investments and setting targets that align their portfolios with the Paris Climate Agreement. Angélica provides technical support to the core team and regional teams of PCAF.
PCAF stands for Partnership for Carbon Accounting Financials. It is an international industry-led initiative to measure and disclose the greenhouse gas emissions financed by loans and investments. Ultimately, as a means to trigger changes in banks’ and investors’ portfolios that align with the goals of the Paris Agreement.
PCAF was created because a group of financial institutions, ranging from banks, insurance to asset owners and managers, realized their role was crucial in accelerating the transition to a decarbonized economy. Banks represent most of the available capital globally and since the Paris Climate Agreement the largest banks have still invested nearly $2 trillion into the fossil fuel sector. This is equivalent to $2.4bn for every working day since the end of 2015, with no downward trend and no assessment of the carbon impact of that finance. Given the scale of the climate challenge and the crucial role of the banking industry, and the financial sector in general, in facilitating the net zero carbon transition, the Partnership for Carbon Accounting Financials was created.
PCAF has set two objectives: (i) develop a global carbon accounting standard making carbon accounting common practice within the financial sector; (ii) attract more than 100 financial institutions globally that assess and disclose the emissions associated with their loans and investments.
Building on the carbon accounting methodologies developed in the Netherlands and North America, a harmonized global carbon accounting standard for financial institutions will be developed. The standard covers all assets classes (like mortgage, real estate, business loans, listed equity etc.) and is open-source and transparent.
PCAF is an open-access, free-of-charge collaboration. As PCAF develops a global harmonized standard for the way financial institutions measure and disclose climate impact, specifically financed emissions as defined under the Greenhouse Gas Protocol, it becomes possible to act to reduce impact and align with global and national policy goals.
The carbon accounting standard developed by PCAF is a foundation for various other initiatives, making PCAF complementary to existing climate initiatives.
By carbon accounting, PCAF members become aware of their impact and are triggered to have tangible impact in the real economy.
PCAF enables the financial industry to take meaningful, collective, and global action against climate change by creating open-source carbon accounting methodologies covering various asset classes.
At the end of 2018, PCAF members have measured the GHG emissions associated to these assets: a total of $1.2 trillion USD. Furthermore, already some PCAF members are taking actions on their portfolios by developing dedicated financial products that incentivize clients to engage in low-carbon solutions.
PCAF is the only industry-led initiative in the market that enables financial institutions to assess and disclose greenhouse emissions of loans and investments through and open-source and transparent approach.
PCAF complements other climate initiatives addressing the financial sector, such as:
PCAF is organized by a steering committee comprised of representatives of: ABN AMRO, Amalgamated Bank, ASN Bank, Global Alliance for Banking on Values (GABV) and Triodos Bank.
PCAF is sponsored by William and Flora Hewlett Foundation. Various other actors are endorsing and promoting PCAF within their regions or among their members.
No. Participation in PCAF, as well as the use of its methodologies, the data behind it, is open-access and free-of-charge, which will remain open-source and accessible to financial institutions of all sizes, on all continents, and loans and investments at every scale.
Supporting this diversity of institutions is central to PCAF’s efficacy as a contributor to global plans and policies for climate action.
Financial institutions that join PCAF commit to assess and disclose the GHG emissions associated with their portfolio of loans and investments within a period of three years using jointly developed accounting methodologies. A commitment letter is available here.