Íslandsbanki has become a member of a global partnership of financial institutions whose objective is to develop and implement metrics for measuring the greenhouse gas emissions associated with their loan and asset portfolios. Participation in the partnership is an element in Íslandsbanki’s sustainability strategy. It is also part of the Bank’s wide-ranging collaboration on responsible business practices that foster sustainable development of the Icelandic economy, as well as supporting the United Nations Sustainable Development Goals.
The Partnership for Carbon Accounting Financials (PCAF) focuses on developing and implementing climate metrics that financial institutions can use to analyse the carbon emissions associated with their loans and investments.
PCAF uses a science-based approach and sets up metrics that are harmonised internationally. This gives financial institutions the opportunity to analyse the carbon emissions in their loan portfolios, set targets for lending and investments, and measure the progress they have made. PCAF originated in the Netherlands. Since its establishment in 2015, over 80 banks and financial institutions on all continents worldwide have become members.
Íslandsbanki has already adopted a comprehensive sustainable financial framework, the first Icelandic bank to do so, and its participation in PCAF is a further step towards measuring its carbon footprint setting targets for the reduction of carbon emissions.