Bank of America is the next Biggest bank at the Usa
Investment bank joins growing variety of financial institutions as part of the Partnership for Carbon Accounting Financials
Bank of America has become the most recent major investment bank to devote to publishing the greenhouse gas emissions attached to its own loans and investments, having joined the increasing number of financial institutions backing the Partnership for Carbon Accounting Financials (PCAF).
Bank of America yesterday affirmed it had signed up to the initiative, following hot on the heels of Citigroup – that also announced it had united PCAF this week – Amalgamated Bank and Morgan Stanley.
PCAF, which currently comprises 70 monetary institutions collectively accountable for about $9tn of resources globally, is currently working to create a frequent methodology to evaluate greenhouse emissions from monetary loans and portfolios, construction on the principles of this Taskforce on Climate-related Financial Disclosures (TCFDs).
All of PCAF members are needed, as an initial measure, to quantify and disclose the emissions of the funding activities and establish goals coordinated with science.
It marks a substantial commitment from Bank of America, that has been recently recognized as the fourth biggest financial backer of fossil fuels on earth, having provided $157bn in financing to petroleum, gasoline and coal actions because the landmark Paris Agreement in 2015.
However, Bank of America’s vice chairman Anne Finucane worried the financial sector needed a “critical role” to play in accelerating the transition to a reduced carbon and renewable market.
“By linking PCAF, we’re helping to induce a more consistent framework for associations to quantify financed emissions, in addition to providing a handy instrument in the management of those emissions, which can be a crucial element when addressing climate change,” she added. “We look forward to cooperating with other financial institutions and partners with this important work.”
Meanwhile, Amalgamated Bank vice president and PCAF steering committee member Ivan Frishberg noted that revealing emissions connected with loans and investments proved to be a “basic building block” to get additional climate actions at financial institutions.
“Counting carbon may look to be a purely technical entity, but we quantify so that we may handle, and Bank of America is demonstrating its seriousness in this work by its active cooperation with PCAF,” he explained.
The PCAF intends to produce a climate threat assessment methodology regular that will “feed into” the job of other worldwide climate initiatives, like the financial industry disclosures of the Carbon Disclosure Project (CDP), Science Based Target adviser (SBTi) and the Task Force on Climate-related Financial Disclosures (TCFD).