Bank joins PCAF, named to Steering Group of Net Zero Banking Alliance
Mitsubishi UFJ Financial Group, Inc. (MUFG) announced that it has joined the Partnership for Carbon Accounting Financials (PCAF), committing to measuring and disclosing the climate impact of its loans and investments.
The PCAF is a global partnership of more than 135 financial institutions, representing nearly $43 trillion in total assets, with a mission to develop and implement a harmonized approach to assess and disclose the greenhouse gas (GHG) emissions associated with loans and investments. In November 2020, the PCAF launched the Global GHG Accounting and Reporting Standard for the Financial Industry, designed to provide a standardized, robust and clear way for banks, asset managers and asset owners to measure and report the GHG emissions impact of their loans and investment portfolios.
The PCAF has seen substantial growth in recent months, increasing its ranks across institutions and geographies. MUFG is one of the first Japan-based financial institutions to join, following Mizuho’s entry into the partnership last month.
According to MUFG, the company’s participation in PCAF supports its commitments to align with the goals of the Paris Agreement and expand and improve transparency of information disclosure.
In addition to joining PCAF, MUFG announced that it has been named to the Steering Group of the Net Zero Banking Alliance (NZBA), as one of the Asian regional representatives of the Group.
The Net Zero Banking Alliance was launched in April 2021, with a group of banks committing to align operational and attributable emissions from their portfolios with pathways to net-zero by 2050 or sooner. The alliance has already grown to over 50 banks from 27 countries representing more than $37 trillion in assets, nearly a quarter of global banking assets. The coalition forms part of the Glasgow Financial Alliance for Net Zero (GFANZ), along with the Net Zero Asset Managers Initiative and the Net-Zero Asset Owner Alliance.
As a steering group member, MUFG will support the coordination of the decisions and strategies for NZBA, in order to build a global consensus and ensure that best practices are available worldwide.