Greenhouse Gas Protocol is partnering with UNEP Finance Initiative to develop guidance for the financial sector to account for greenhouse gas (GHG) emissions associated with lending and investment portfolios. This guidance will serve as a supplement to the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard.
Background
As the world transitions to a low-carbon economy, the financial sector will need to better understand its exposure to greenhouse gas emissions. Currently, most banks only measure emissions from their own operations, which are much smaller than those associated with their lending and investing activities. Over the past ten years more than a dozen assessment methodologies have been developed by financial institutions and advocacy groups, however, the level of reporting remains low. One reason is the lack of an internationally accepted accounting method tailored to the needs and characteristics of the financial sector. This guidance from GHG Protocol and UNEP FI will directly address this gap.
The GHG Protocol Financial Sector Guidance will create a robust, harmonized approach to GHG accounting in the financial sector, which will facilitate greater transparency and a better-informed dialogue among all interested stakeholders.
The launch of this initiative follows an extensive, eight-month scoping exercise that affirmed the need for this guidance. The GHG Protocol Financial Sector Guidance will be developed over the next two years through an inclusive, multi-stakeholder process. The guidance will be a supplement to the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard, and will also build on the relevant methodologies that already exist.
First Advisory Committee Meeting
The first Advisory Committee meeting was held on October 9-10, 2013 in New York City. A summary of the outcomes of this meeting is available to download here.
Call for Technical Working Group Participants
UNEP FI and GHG Protocol invite interested stakeholders to participate in a technical working group for the development of a financial sector GHG accounting guidance and carbon asset risk guidance. Please see the Terms of Reference for details about the Technical Working Group process and a link to express your interest in participation here.