14 September 2020 – The Partnership for Carbon Accounting Financials (PCAF), an industry-led initiative to measure and disclose greenhouse gas emissions financed by loans and investments, has strengthened and expanded participation to work collaboratively with a UN-convened, international alliance of institutional asset owners and separately, on-board a leading values-based Asian bank. As representatives of the Net-Zero Asset Owner Alliance and Nepalese NMB Bank join the leadership of a movement of financial institutions rapidly scaling up efforts to enable alignment with the Paris Climate Agreement, PCAF continues to expand its coverage.
PCAF has grown rapidly. From 50 financial institutions with over five trillion USD in assets at its global launch last September, the initiative is now home to 75 financial institutions with over 12 trillion USD in assets. Founded by pioneers of carbon accounting of financial assets, this bottom-up initiative has expanded its global reach and attracted large financial institutions more recently including: NatWest Group (UK, previously known as The Royal Bank of Scotland Group), Investec (South Africa), Banco Bradesco (Brazil), Grupo Bancolombia (Colombia), Access Bank (Nigeria), Morgan Stanley (US), Citi (US), Bank of America (US), NN Group (Netherlands), and Danske Bank (Denmark).
Extending PCAF’s Steering Committee allows it to build on its foundations in values-based banking, add a key representative from Asia and reinforce its global and diverse nature particularly from an institutional investors’ perspective.
PCAF is now collaborating with the Net-Zero Asset Owner Alliance (AOA), added a representative of AOA to its Steering Committee, and welcomed NMB Bank from Nepal to its leadership. The Steering Committee, which does not anticipate expanding further, now consists of ABN AMRO, Amalgamated Bank, ASN Bank, Global Alliance for Banking on Values (GABV), Triodos Bank, Morgan Stanley, the Net-Zero Asset Owner Alliance (represented by Nordea Life & Pension), and NMB Bank. Reflecting all types of financial institutions and a global presence, the full Steering Committee is excited to lead the further development of PCAF’s carbon accounting standard and to grow the initiative further in advance of COP26.
Dinesh Dulal, Head of Energy Financing at NMB Bank, explains: “Keeping the global increase in temperature within safe limits is crucial for us all, but it’s particularly relevant in countries in Asia which are vulnerable to extreme weather events and rising sea levels. We are delighted to be part of a pioneering initiative that helps financial institutions play their part in addressing one of the greatest challenges of our time.”
Martin Rohner, Executive Director, Global Alliance for Banking on Values (part of the Steering Committee), says: “As a network of the world’s leading values-based banks we want to be a catalyst for positive change in the wider banking system. PCAF does just that, offering a practical, scalable and proven way for financial institutions to help address the climate emergency.”
Peter Sandahl, Head of Sustainability at Nordea Life & Pension, will serve as the representative of AOA. Sandahl says: “The Net-Zero Asset Owner Alliance is pleased to initiate a collaboration with PCAF to further harmonize, develop and implement carbon accounting methodologies for financial institutions. This is an important foundation for investors wanting to take action on climate change and a central part of our objectives and commitments in the alliance.”
About the Partnership for Carbon Accounting Financials
In September 2019, the Partnership for Carbon Accounting Financials (PCAF) was launched globally. Currently, 75 banks and investors have subscribed to the PCAF initiative. PCAF institutions work together to jointly develop the Global Carbon Accounting Standard for the financial industry to measure and disclose the greenhouse emissions of their loans and investments. By doing so, PCAF institutions take the first step required to assess climate-related risks, set targets in line with Paris Climate Agreement and develop effective strategies to decarbonize our society. For more information: https://carbonaccountingfinancials.com/
About Net-Zero Asset Owner Alliance
The UN convened Net-Zero Asset Owner Alliance is an international group of 29 institutional investors (as of 3rd August 2020) with nearly 5 trillion in AUM delivering on a bold commitment to transition their investment portfolios to net-zero GHG emissions by 2050. Learn more at https://www.unepfi.org/net-zero-alliance/
About NMB Bank
NMB Bank Limited licensed as “A” class financial institution by Nepal Rastra Bank in May 2008 has been operating in the Nepalese Financial market for over twenty years and is one of the leading commercial banks in the banking industry.
The Bank has a Joint Venture Agreement with Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), wherein FMO holds 13.69% of the Bank’s shares and is the largest shareholder of the Bank. In September 2016, the Bank signed a Joint Venture Agreement with FMO following which FMO became the single largest shareholder of the Bank. The alliance with FMO positions the NMB Bank in becoming the market leader in managing environmental & social risks and the leading player in renewable energy and agribusiness.
NMB Bank was awarded 'Bank of the Year - 2017' and 'Bank of the Year 2018' consecutively by The Banker, Financial Times, London.
For more information: https://nmbbanknepal.com/
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Note for press
Please contact:
Giel Linthorst, Executive Director of PCAF Secretariat, at info@carbonaccountingfinancials.com or mobile +31 6 11 366 935
