Initiated in 2015, the Global GHG Accounting and Reporting Standard for the Financial Industry series by Partnership for Carbon Accounting Financials (PCAF) provides a comprehensive framework for financial institutions to measure and disclose greenhouse gas (GHG) emissions. This series supports transparency and accountability in the financial sector, aiding institutions in assessing and managing climate-related risks.

Methodology

The standard utilises a consistent methodology to calculate emissions, incorporating data collection, analysis, and reporting processes. It includes sector-specific guidance and harmonises various accounting approaches to ensure comparability across financial institutions.

Purpose

The primary aim of this series is to enhance the accuracy and reliability of GHG emissions reporting within the financial industry. By providing clear guidelines, it helps institutions align with global climate goals and regulatory requirements.

Parts of the standard

Part A – Financed emissions

Provides detailed methodological guidance to measure and disclose GHG emissions associated with seven asset classes and emission removals.

Part B – Facilitated emissions

Offers methodological guidance for measuring and reporting the GHG emissions associated with capital markets issuances.

Part C – Insurance-associated emissions

Covers methodological guidance for measuring and reporting the GHG emissions related to re/insurance underwriting.

Usage

Finance professionals can use this standard to improve their understanding of climate-related financial risks, integrate sustainable investment strategies, and enhance their organisations’ climate accountability. It serves as a critical tool for making informed decisions that contribute to environmental sustainability.

This series is a valuable resource for those seeking to navigate the complexities of climate risk management and sustainable finance.