All rights reserved. Purpose: ensure investors can decarbonise investment portfolios and increase investment in climate solutions, in a way that is consistent with a 1.5C net zero emissions future. NewYork, NY10017 Deutsche Bank For all other users, this content is issued by Schroder Investment Management Limited, 1 London Wall Place, London EC2Y 5AU. This commitment is in addition to the bank's 2021 targets in four other carbon-intensive sectors and the decision to stop financing coal companies. The value of an investment can go down as well as up and is not guaranteed. Financed Emissions: Can Banks Change Before the Climate Does? Copyright 2022 Verdantix. Bank Financed Emissions Reporting The inclusion of PCAF methodology as the baseline disclosure framework is welcomed as a pragmatic standard for the banking sector. Download slides. Weblink: Task Force on Climate-Related Financial Disclosures | TCFD) (fsb-tcfd.org), Topic: environmental disclosure (climate, forests and water), Sector focus: sector specific (specific questions for different sectors), Signatories/ supporting organisations: 13000+ companies and 1,100+ cities, states and regions. To the extent that you are in North America, this content is issued by Schroder Investment Management North America Inc., an indirect wholly owned subsidiary of Schroders plc and SEC registered adviser providing asset management products and services to clients in the US and Canada. As leaders prepare for COP26 1 at the end of this month, the need for addressing the looming climate crisis seems to be grasped more broadly than ever before. GHG Emissions t CO2e/$ million Illustrative example assumes allocating 5% of capital into a high emission business (e.g. CARBON ACCOUNTING databases and services provide audit-quality financed Scope 3 emission data with 100% GGP and PCAF compliance. We offer online training on our standards and tools, as well as the Built on GHG Protocol review service, which recognizes sector guidance, product rules and tools that are in conformance with GHG Protocol standards. Enablon Incorporates Integrated Risk Capabilities With Carbon Accounting 03.18.2021 | Press Release . Within Deutsche Banks corporate loan portfolio, financed emissions are concentrated in a few sectors and a very limited number of companies. GHG Protocol and PCAFlaunched the Global GHG Accounting and Reporting Standard for the Financial Industryin January 2021as a response to industry demand for a global, standardized approach to measure and report financed emissions. Weblink: UN-convened Net-Zero Asset Owner Alliance United Nations Environment Finance Initiative (unepfi.org), Signatories/ supporting organisations: 273 asset managers. in million $US (incl. Insight: the PCAF standard underpins the calculation methodology used in the SBTi. Moving Beyond Climate Disclosure and Looking into Nature Disclosure | Watch recording | CDP workshops and webinars - CDP Climate action like that is not only good for business - but is a duty to our clients, the planet, and to future generations., Kees van Dijkhuizen, former CEO, ABN AMRO. TCFD-Aligned Climate Disclosure Rules And Investor Pressure Have Reshaped Requirements Authorised and regulated by the Financial Conduct Authority. United Kingdom The industry-led Partnership for Carbon Accounting Financials (PCAF) has issued guidance for the financial sector that refers to best practice Carbon Accounting standards based on the well-established GHG Protocol in this regard. Like(s). 3 And more than 3,000 companies have OneTrust Acquires Planetly And Gains Traction Providing Carbon Management Software To A Variety of Industries 03.18.2021 | Press Release . Currently, the standard covers the calculation of financed emissions across: Given the complexities, PCAF are still consulting the industry regarding the treatment of emissions from sovereign bonds. Greenhouse Gas Protocol Harmonising and implementing a carbon Read about the Global GHG Accounting & Reporting Standard for the Financial Industry, best practices, and upcoming events. The CA100+ uses its Net Zero company benchmark to evaluate its 100+ Focus Companies performance against two types of indicators: Disclosure Framework indicators (that evaluate the adequacy of corporate disclosure), and Alignment Assessments (that evaluate the alignment of company actions with the Paris Agreements goals). PCAF Summary: due to its establishment in 2000, the CDP is a not-for-profit charity that runs the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts. 1 0 obj How to evaluate a banks net zero plan PCAFAvoided EmissionsCO 2 CO 2 Insight: the TPI and FTSE Russel have come together to produce a Climate Transition Index Series that aims to assess companies preparedness to a low-carbon economy. *) These banks are members of the Global Alliance for Banking Values (GABV) and have committed under their3C Initiative to measure and disclose the carbon footprint of their loans and investments. (p.65) "Banks should disclose the appropriate financed-emissions metric, based on the Partnership for Carbon Accounting Financials (PCAFs) methodology and weighted Evaluated Firms And Selection Criteria Committing to net zero and avoiding Purpose: to enable the consistent measurement and reporting of greenhouse gas emissions by the financial industry. PCAF Those include expert data practitioners that support your platform deployment journey, solution consultants that will help advise on the right operational strategies, and members of our Sustainability Advisory Board that continue to shape the global In 2016, 92% of Fortune 500 companies responding to the CDP used GHG Protocol directly or indirectly through a program based on GHG Protocol. Participating, as a member of the Partnership for Carbon Accounting Financials (PCAF), in PCAFs Sovereign and Capital Market Instruments Working Groups as well as its Climate Data Working Group; Participating in the Science Based Targets initiatives (SBTi) Expert Advisory Group (EAG). Currently, the standard covers the calculation of financed emissions across: Listed equity and corporate bonds; Business loans and unlisted equity; Project finance; Commercial real estate; Mortgages, and; Motor vehicle loans; Given the complexities, PCAF are still consulting the industry regarding the treatment of emissions from sovereign bonds. Summary: established in 2020 following the launch of the NZAOA (see above), NZAMI provides a consistent approach for investment managers to establish a net zero commitment. By using the International Energy Agency (IEA)s Net Zero scenario (NZE) as its benchmark, Deutsche Bank is developing net zero pathways for its overall loan portfolio, while concentrating on four particularly energy-intensive sectors driven by the following specific metrics: Additionally, the bank will expand its disclosures beyond its loan book into other on- and off-balance sheet activities such as capital markets financing and total committed facilities. Registered No. Please click in any asset class below to find out more about how financial institutions have measured the greenhouse gas emissions associated with the specific asset class. It provides sector-specific methodologies and guidance for setting science-based targets that show organisations how quickly they need to reduce their GHG emissions in order to reach net zero by 2050. Based on the proprietary Verdantix Green Quadrant methodology, our analysis encompassed two-hour live briefings, desktop research and vendor responses to a 103-point questionnaire covering 17 capability and 10 market endobj GHG Protocol and PCAF launched the Global GHG Accounting and Reporting Standard for the Financial Industry in January 2021 as a response to industry demand for a global, standardized approach to measure and report financed emissions. In the quest to solve it, firms try to drive change guided by a plethora of frameworks and initiatives. 1 5C emissions pathway To that end, we developed a meth-odology to establish a 1 5C emissions reduction pathway, as well as a GHG accounting approach for absolute emissions Common measurement standards like PCAF and globally ac-cepted reporting rules and definitions are essential in the The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Communications Manager, GHG Protocol, Climate Program Summary: Established in early 2019, the UN-convened alliance brings together some of the largest Asset Owners globally to promote the strategic alignment of capital to support and enable the net zero transition. 4 -most.co.uk info@4 most.co.uk It is also a phenomenally complex problem. Authorised and regulated by the Financial Conduct Authority. This is executed through a two-part assessment: The tool is free for investors to use and monitors almost 500 companies; using FTSE Russel as its data provider. WRI and WBCSD convened a core steering group comprised of members from environmental groups (such as WWF, Pew Center on Global Climate Change, The Energy Research Institute) and industry (such as Norsk Hydro, Tokyo Electric, Shell) to guide the multi-stakeholder standard development process. The metrics in the Disclosure Framework are published by the focus companies themselves and aggregated by the Transition Pathway Initiative (TPI), whilst different elements of the Alignment Assessment are performed by the different data providers that support the initiative. 4 -most.co.uk info@4 most.co.uk Register with Verdantix for authoritative data, analysis and advice to allow your business to succeed. The Global Core Team develops and writes the Standard. Global GHG Accounting and Reporting Standard, Public consultation on Capital Markets Facilitated Emissions methodology, Public Consultation on Insurance-Associated Emissions Progress Report, Public Consultation on Technical Guidance for Real Estate Operations, Insurance-Associated Emissions Scoping Document, Global GHG Accounting & Reporting Standard for the Financial Industry. The industry-led Partnership for Carbon Accounting Financials (PCAF) has issued guidance for the financial sector that refers to best practice Carbon Accounting standards based on the well-established GHG Protocol in this regard. Green Quadrant Methodology BBVA is committed to clean energy and will support the energy industry in its transition. Schroders uses cookies to personalise and improve your site experience. Deutsche Bank (XETRA: DBKGn.DB / NYSE: DB) today disclosed for the first time data on its financed greenhouse gas emissions. Though only climate currently contributes to a companys score, this is expected to change from 2023. The bank has therefore announced it will reduce emissions from its oil and gas portfolio by 30% by 2030. Achmea Investment Management is aware of the important role thatthe investment community plays in combatting climate change and achieving the ambitious objectives of the energy transition. Establishing the net zero trajectory is the easy part. FGTCFD2022 @p.RFh.F n9=IK[Sp0 F/h p0nuI+aUmu)m-yR&P8ppBk_Ze?+M?z$=7y3_:Cc1i@xp9phOS$` G. Moving Beyond Climate Disclosure and Looking into Nature Disclosure | Watch recording | The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. All investments involve risks including the risk of possible loss of principal. Engagement targets: including direct engagement with underlying holdings, and contribution to Asset Manager-led engagements; Sector targets: sector specific KPIs with a focus on intensity/absolute targets, including Scope 3 emissions where possible; Sub-portfolio emissions targets: asset class specific KPIs with a focus on intensity/absolute targets, including Scope 3 emissions where possible, and; Financing transition targets: focused on driving increased transparency in climate reporting. 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