Stockholm (NordSIP) – Danske Bank announced it had joined the Partnership for Carbon Accounting Financials (PCAF), the first large Nordic Bank to do so. With US$ 799.6 billion in total financial assets, Danske Bank became the most significant member of the Partnership.
“In February this year, we introduced new targets for the bank’s contribution to the green transition. Among these, we committed to align our corporate lending portfolio with the climate goals of the Paris Agreement. This is a multi-year journey and a first significant step is to ensure a method to base our calculations on. Joining the PCAF is therefore valuable as we are moving towards fulfilling this commitment,” says Maria Simonson, Head of Danske Bank’s Group Societal Impact & Sustainability.
The PCAF is a collaboration between financial institutions to develop and implement a harmonised approach to measure and disclose the greenhouse gas emissions associated with loans and investments. The goal is for the Partnership’s harmonised accounting approach can provide its members with a common reference to set science-based targets and align their portfolio with the Paris Climate Agreement.
“Participating in PCAF provides us with the starting point required to set measurable targets and ultimately align our corporate lending portfolio with the climate goals of the Paris Agreement,” says Samu Slotte, Head of Sustainable Finance at Danske Bank.
By implementing the PCAF’s approach to measuring emissions linked to loans and investments, Danske Bank hopes that this latest step in its environmental journey can help it in developing and performing scenario analysis, set targets and disclose progress on actions to mitigate the effects of climate change.
“PCAF links well to our support for and promotion of standardisation and transparency of efforts to measure and assess climate-related financial risk, and serves as a relevant framework to further expand the measurement and reporting on emissions across asset classes,” Ulrika Hasselgren, Head of Sustainability & Impact Investment at Danske Bank, added.