Partnership for Carbon Accounting Financials (PCAF)

The Partnership for Carbon Accounting Financials (PCAF) is a global alliance of financial institutions collaborating to develop and implement a standardized approach for assessing and disclosing the greenhouse gas (GHG) emissions associated with their loans and investments. This harmonized accounting framework provides financial institutions with the foundation needed to set science-based targets and align their portfolios with the Paris Climate Agreement.

Key aspects of PCAF include:

  • Global Collaboration: PCAF brings together financial institutions worldwide to jointly develop methodologies for GHG accounting, promoting consistency and transparency in the financial sector.
  • Standardized Framework: The initiative has developed the Global GHG Accounting and Reporting Standard for the Financial Industry, an open-source tool that enables institutions to measure and disclose emissions across various asset classes.
  • Alignment with Climate Goals: By providing a clear methodology for assessing financed emissions, PCAF supports financial institutions in setting targets aligned with the Paris Agreement's objective of limiting global warming to well below 2°C.

Since its global launch in 2019, PCAF has experienced significant growth, with over 500 financial institutions committing to measure and disclose the GHG emissions of their portfolios. This widespread adoption reflects the financial sector's increasing recognition of the importance of transparency and accountability in addressing climate change.

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