21 Jun 2022
NIB joins the Partnership for Carbon Accounting Financials
NIB signed up for the Partnership for Carbon Accounting Financials (PCAF) to further strengthen the Bank’s climate agenda. The partnership follows NIB’s earlier commitment to the Task Force on Climate-related Financial Disclosures (TCFD) and allows the Bank to benefit from harmonized data and accounting methodologies in its disclosure processes.
“Measuring and disclosing financed emissions associated with lending and investments is core to climate risk management and climate strategy for banks. By joining this important industry led initiative, we support the development of market standards and transparency as well as commit to further develop our own climate practices,” says Tiina Salonen, Senior Sustainability Advisor at NIB.
PCAF is a collaboration between financial institutions worldwide to enable harmonized assessments and disclosures of greenhouse gas emissions financed by loans and investments. With more than 270 financial institutions from six continents, the group is rapidly expanding in North America, Latin America, Europe, Africa and Asia-Pacific.
The initiative is in line with the recommendations of the TCFD, which NIB endorsed in 2019. According to the TCFD guidelines, NIB has begun reporting on its financed emissions, i.e. the greenhouse gas emissions (GHG) associated with its lending and treasury portfolios, and aims to extend the scope of reporting over the next years.
Participation in the PCAF offers a widely adopted calculation methodology for measuring the financed emissions of different asset classes. Moreover, the data available to its signatories further contribute to greenhouse gas mapping of NIB’s lending and investments, which builds a basis for the development of NIB’s climate risk management and climate strategy.
In 2019, NIB also signed up for the Principles of Responsible Investment (PRI) and the Principles for Responsible Banking (PRB). Both commitments include recommendations for banks on how to better incorporate climate-related issues into its their investment analyses and decision-making processes.
PCAF was launched globally in September 2019. PCAF participants work together to jointly develop the Global GHG Accounting and Reporting Standard for the Financial Industry. By doing so, PCAF participants take an important step to build the foundation for assessing climate-related risks, setting climate targets in line with the Paris Climate Agreement and developing strategies supporting the decarbonization of our society. More information is available here.
NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.
For further information, please contact
Tiina Salonen, Senior Sustainability Advisor, at +358 10 618 0261, firstname.lastname@example.org
Vytautas Brazaitis, Communications Officer, at +358 10 618 0235, email@example.com