The PCAF has launched a public consultation to introduce and refine its groundbreaking methods for measuring and reporting GHG emissions linked to financial activities.
This initiative, set to continue until 28 February 2025, marks a significant advancement in environmental accountability within the financial sector.
Developed by PCAF’s industry-led working groups, which include nearly 100 experts from its signatories, the new methodologies have been in the making since early 2024. These methodologies are crucial for enhancing the accuracy and consistency of GHG emissions reporting across financial instruments. The consultation will focus on a series of innovative approaches that include the accounting of Use of Proceeds, Securitized and Structured Products, and Sub-Sovereign Debt. Additionally, it will address financed avoided emissions and forward-looking emission metrics, providing vital guidance for financial institutions aiming to report emissions reductions across various asset classes.
Another significant aspect of the consultation is the discussion on inventory fluctuations. This involves exploring potential methods to mitigate the impact of these fluctuations on the measurement of financed emissions. Moreover, the consultation seeks to align PCAF’s methodologies with the International Financial Reporting Standard (IFRS) S2, proposing a new calculation method for emissions from undrawn loan commitments.
These proposed methodologies not only enhance transparency in GHG reporting but also support financial institutions in their efforts to contribute to global climate goals. The consultation is open to PCAF signatories, industry experts, and all relevant stakeholders, encouraging a collaborative approach to refining these critical environmental metrics.
Keep up with all the latest FinTech news here
Copyright © 2024 FinTech Global
