Banks play an important role in the transition to a lower carbon economy. To support our strategy and efforts within the climate agenda, we now join the Partnership for Carbon Accounting Financials (PCAF) as the first large Nordic Bank.
The PCAF partnership is a collaboration between financial institutions to develop and implement a harmonised approach to measure and disclose the greenhouse gas emissions associated with loans and investments.
Accordingly, the PCAF plays a role in supporting Danske Bank’s commitment to promote standardised sustainability disclosures and align our corporate lending portfolio with the climate goals of the Paris Agreement.
“In February this year, we introduced new targets for the bank’s contribution to the green transition. Among these, we committed to align our corporate lending portfolio with the climate goals of the Paris Agreement. This is a multi-year journey and a first significant step is to ensure a method to base our calculations on. Joining the PCAF is therefore valuable as we are moving towards fulfilling this commitment,” says Maria Simonson, Head of Group Societal Impact & Sustainability.
An international approach
Measuring emissions linked to loans and investments provides a basis for Danske Bank to develop and perform scenario analysis, set targets and disclose progress on actions to mitigate the effects of climate change.
“Participating in PCAF provides us with the starting point required to set measurable targets and ultimately align our corporate lending portfolio with the climate goals of the Paris Agreement,” says Samu Slotte, Head of Sustainable Finance at Danske Bank.
Ulrika Hasselgren, Head of Sustainability & Impact Investment at Danske Bank, adds that:
“PCAF links well to our support for and promotion of standardisation and transparency of efforts to measure and assess climate-related financial risk, and serves as a relevant framework to further expand the measurement and reporting on emissions across asset classes.
PCAF was created by fourteen Dutch financial institutions in 2015 and consists today of more than 60 banks, investors and fund managers from five continents that work together to develop and implement a harmonized approach to assess and disclose the greenhouse gas emissions associated with their loans and investments.