The Partnership for Carbon Accounting Financials (PCAF) has launched a public consultation on the Global GHG Accounting and Reporting Standard for the Insurance Industry Progress Report.
Given the increasing demand by the insurance industry and other stakeholders for tools to measure and report greenhouse gas (GHG) emissions, there is a need to develop a set of global, standardized methodologies for measuring and disclosing the GHG emissions associated with insurance and reinsurance underwriting portfolios for accounting purposes.
Currently, more than 290 financial institutions worth $77+ trillion have subscribed to the PCAF initiative to measure and disclose the GHG emissions of loans and investments. By doing so, PCAF participants take an important step to assess climate-related risks, set targets in line with the Paris Climate Agreement and develop effective strategies to help decarbonize society.
The PCAF includes Canadian partners, such as the Royal Bank of Canada (RBC). “Joining PCAF and working with our peers is an important part of our commitment to net-zero lending by 2050 and supporting the principles of the Paris Agreement. The PCAF Standard for measuring GHG emissions in lending portfolios is an essential tool for the management and reporting of climate-related risks and opportunities,” said Graeme Hepworth, chief risk officer at RBC.
Following the consultation on the Insurance-Associated Emissions Scoping Document in March, the PCAF Insurance-Associated Emissions Working Group has worked intensively to finalize the Progress Report on Reporting Insurance-Associated Emissions.
The Global GHG Accounting and Reporting Standard for the Insurance Industry Progress Report will cover topics including:
- Attribution factor proposals for commercial lines insurance
- Attribution factor proposals for personal motor lines
- Insurance-associated emissions data and data quality
- Reporting methodology, requirements, recommendations, and metrics
PCAF invites all interested stakeholders to provide feedback on the Global GHG Accounting and Reporting Standard for the Insurance Industry Progress Report in a public consultation starting July 14 and running until August 26.