The Partnership for Carbon Accounting Financials (PCAF) is at the heart of this movement, providing banks, investors, and insurers with tools to measure data for meaningful change. Recent Climate Weeks in Mexico City, New York, and London have revealed how this journey is unfolding across continents, and what it means for the future of sustainable finance.
In Latin America, momentum is palpable. Mexico City’s first-ever Climate Action Week brought together financial institutions eager to track and report their GHG emissions. PCAF’s Latin America and Caribbean (LAC) lead moderated a panel with leaders from BBVA, Macquarie, and Moody’s, focusing on sustainable investments in Mexico and the region. The panel explored how financial institutions are aligning investment strategies with climate goals and how Mexico’s evolving regulatory landscape is prompting more organizations to account for their climate impact and integrate ESG criteria into their core business. Adrian Cuello, Head of Sustainable Business Commercial, Institutions & Retail at BBVA Mexico (a PCAF signatory) emphasized that sustainability must be integral to the bank’s strategy to drive transformation. The panel underscored that now is the time to put plans into action and begin investing in resilient energy systems, green infrastructure, and sustainable solutions.
Mexico demonstrates that evolving regulations are encouraging the adoption of standardized methods for measuring climate impacts, not just for compliance but as a strategic asset to understand and prepare for climate transition risks. More than 55 financial institutions in the region have joined PCAF, drawn by practical tools, clear standards, and a community that thrives on peer learning. For many, measuring emissions supports regulatory requirements, builds trust with customers and partners, and enables progress tracking over time.
As regulations advance, collaboration and knowledge-sharing are proving to be powerful drivers of change. Latin America is strengthening efforts in GHG emissions reporting, recognizing that emissions from financial activities make up the largest share of financial institutions’ overall emissions – more than 750 times greater than operational emissions. Measuring these emissions is the essential first step towards managing them and driving meaningful climate action.
Meanwhile, New York Climate Week set a record with over 1,000 events focused on practical solutions and cross-sector collaboration as it relates to sustainability. PCAF’s event at Deutsche Bank highlighted a simple but powerful principle aligned with Mexico Climate Week’s takeaway: what gets measured gets managed. Importantly, these strategies aren’t just about environmental impact, they also can provide strategic benefit to the financial institution implementing them. By leveraging data to engage stakeholders, financial institutions can identify ways to reduce risk, cut costs, and strengthen long-term value.
The event highlighted how the financial sector is leading with transparency, innovation, and data smart decision-making to support a more resilient industry. Financial institutions are using data-driven strategies to reduce their environmental footprint and improve business processes to leverage the findings from sustainability reporting. By engaging stakeholders and leveraging data, they’re finding new ways to reduce risk, cut costs, and strengthen long-term value. The message is clear—transparency and innovation are reshaping the financial sector.
London’s Climate Action Week offered a candid look at the challenges and opportunities ahead. At a PCAF workshop, signatories from the UK, and beyond shared their experiences with measuring emissions related to financial activities. The conversation revealed common hurdles: limited access to high-quality data, reliance on estimates and proxies, and the need for automation. While the PCAF methodology is widely adopted, participants called for refinements—especially for insurance and project finance. Regulatory pressures are mounting, particularly in the UK and EU, and institutions are working hard to align with evolving disclosure requirements.
Across all three regions, several themes stand out. Data quality and access remain the biggest challenges, especially for private assets and small businesses. Many financial institutions still rely on manual processes, but automation and third-party data providers are gaining ground. Auditors check assumptions and data quality, asking for transparent about limitations. The journey from “how do we measure this?” to “how do we measure this better?” is underway, with early adopters prioritizing baseline measurements—even if imperfect—and improving over time.
One of the most important lessons is that disclosure isn’t just about compliance. It’s a way to build internal expertise and stakeholder trust. By documenting assumptions and being open about limitations, financial institutions are turning transparency into a strategic asset. Automation and collaboration are accelerating progress, with regional teams and peer learning helping organizations apply global standards in ways that make sense locally. PCAF’s mission reflects this evolution: empowering financial institutions to measure and disclose GHG emissions associated with financial activities. By standardizing methodologies, providing technical assistance, and fostering a global community, PCAF is driving transparency, accountability, and innovation in the financial sector. Every financial institution—regardless of region or maturity—has a key role to play in this journey.
The lessons from Mexico City, New York, and London are clear: measuring emissions is the first step, together with collaboration, transparency, and innovation to drive progress. As the sustainable finance community continues to grow, PCAF invites financial institutions everywhere to join this global movement, share knowledge, and help shape the future of climate finance.
