Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Banks launch framework to track carbon footprint of investments

Published 23/09/2019, 12:25
© Reuters.  Banks launch framework to track carbon footprint of investments
ABNd
-

By Valerie Volcovici

UNITED NATIONS (Reuters) - Over 50 banks and other financial institutions representing nearly $3 trillion (2.41 trillion pounds) in assets announced on Monday they will assess and disclose the impact their loans and investments will have on climate change using common carbon accounting standards.

They launched the Partnership for Carbon Accounting Financials (PCAF), an industry-wide effort to standardize how companies measure the carbon footprints of their investments, at a time when activists and stakeholders are pressuring the financial sector to pull back from heavily polluting fossil fuel projects.

"Knowing the emissions of their loans and investments means banks can be transparent with their stakeholders," said Peter Blom, CEO of Dutch bank Triodos. "They can make informed decisions that limit the negative impact, and increase the positive impact, of their financial decisions on the climate.”

The banks hope the framework will become a benchmark for the financial sector as institutions and banks try to meet the goals of the Paris Climate Agreement.

It has been adopted by several Dutch banks, including ABN AMRO (AS:ABNd), which found out by using the PCAF framework that residential mortgages were one of the areas of highest carbon impact. The bank used this information to promote mortgages with incentives for energy efficiency, Kees van Dijkhuizen, CEO of ABN AMRO, said in a statement.

“Our experience in the Netherlands is that measuring and tracking climate impact drives concrete action and change," he said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.