Guidehouse supported the Partnership for Carbon Accounting Financials North America (PCAF NA) in developing a harmonized carbon accounting approach. The resulting report presents methodologies to calculate the greenhouse gas (GHG) emissions of loans and investments in six asset classes.
The presented carbon accounting methodology is the first iteration of a North America-focused approach to account for the GHG emissions from a financial institution’s lending and investment activities, so called scope 3 emissions. These loans and investments make up the majority of a financial institutions’ emissions impact and subsequently these organizations’ contribution to global climate change.
While tailored to the US and Canada, the methodology also builds on previous work by PCAF Netherlands. By measuring and disclosing information, the PCAF initiative expects to develop more effective strategies that help contribute to a low carbon society in the hope that other institutions will follow suit.