ComBank first to join global Partnership for Carbon Accounting Financials

Tuesday, 30 July 2024 01:54 - - {{hitsCtrl.values.hits}}

The Commercial Bank of Ceylon has become the first Sri Lankan bank to be a signatory to the Partnership for Carbon Accounting Financials (PCAF), a global initiative that enables signatories to measure and disclose the greenhouse gas (GHG) emissions associated with their financial activity.

Already certified 100% carbon neutral in terms of its operations, Commercial Bank’s ground-breaking engagement with PCAF is supported by the International Finance Corporation (IFC) and is a pivotal element of the Bank’s Climate Transition Plan, the Bank said.

PCAF provides a common methodology for measuring and disclosing the carbon footprint of financial portfolios. This methodology considers financed emissions, facilitated emissions and insurance associated emissions, as specified by the Global GHG Accounting and Reporting Standard, enabling consistent reporting across different financial institutions.

“At Commercial Bank, global best practices inspire our actions, particularly driving our sustainability-linked initiatives,” the Bank’s Managing Director/CEO Sanath Manatunge said. “We aim to transcend the boundaries of our eco-friendly operations, evaluating the impacts of our lending to adopt a holistic approach to environmental, social, and governance aspects. Our collaboration with the Partnership for Carbon Accounting Financials marks a significant milestone in this journey, and we extend our gratitude to the IFC for its invaluable guidance and support in this endeavour.”

To spur sustainable investments, Commercial Bank recently partnered with the IFC and the European Union (EU), under the ACSIIS program to help the Bank lay the foundation for a net-zero transition.

Besides its collaborations with International Finance Corporation, Commercial Bank is also working with the Global Green Growth Institute (GGGI) and the Green Building Council of Sri Lanka (GBCSL) to facilitate green financing in Sri Lanka.

The Partnership for Carbon Accounting Financials was launched globally in September 2019. Its primary goal is to support the financial sector in measuring and disclosing the greenhouse gas (GHG) emissions associated with their financial activity, promoting transparency, accountability, and informed decision-making among financial institutions to address climate change.

Currently, more than 500 financial institutions have committed to the PCAF initiative. PCAF signatories work together to jointly develop the Global GHG Accounting and Reporting Standard for the Financial Industry to measure and disclose the greenhouse gas emissions associated with portfolios of loans, investments, provision of insurance, and other financial products and services. By doing so, PCAF signatories take an important step to assess climate-related risks, set targets in line with the Paris Climate Agreement and develop effective strategies to decarbonise our society.