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Launch of first global standard to measure and report financed emissions

The Partnership for Carbon Accounting Financials (PCAF) today launched the Global GHG Accounting and Reporting Standard for the Financial Industry. Landsbankinn has been an active participant in the development of the Standard. The PCAF Standard provides banks and other financial institutions with a robust and clear way of measuring and reporting GHG emissions tied to lending and investment activities. This marks a certain milestone in work towards sustainability for financial institutions as a common methodology and standard to measure their indirect impact has not been available before.

Landsbankinn, alone among Icelandic banks, has in recent years participated in the development of the PCAF Standard along with 15 other financial institutions from around the world. These include Morgan Stanley, Bank of America and Amalgamated Bank in the USA, and the Dutch banks ABN AMR, Robeco and FMO, plus various stakeholders. Already, 86 financial institutions have committed to the PCAF Standard.

Aðalheiður Snæbjarnardóttir, Sustainability Officer at Landsbankinn: “The launch of the PCAF Standard allows financial institutions to measure carbon emissions from their asset portfolio in a scientific and standardised manner. Landsbankinn wants to know the real impact of its loan and asset portfolio and can now begin compiling that data. Once we have the results, we will publish them regularly to ensure that the Bank’s investors and other stakeholders have a clear picture of real emissions from the portfolio, as well as developments. This information will be key in the comparison of financial institutions in the near future.”