Global alternative investment-focused asset manager Oaktree Capital Management announced that it has joined the Partnership for Carbon Accounting Financials (PCAF), and committed to measure and disclose the greenhouse gas (GHG) emissions of its portfolios.
The PCAF is a global partnership of financial institutions, launched in 2019 with a mission to develop and implement a harmonized approach to assess and disclose the greenhouse gas (GHG) emissions associated with loans and investments. The organization has experienced rapid growth since launch, reaching 280 signatories represents more than $75 trillion in financial assets.
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. According to the PCAF, the standard has become the single most widely used methodology for measuring and reporting financed emissions globally, and was recently officially embedded into the Task Force on Climate-related Financial Disclosures’ (TCFD) climate disclosure recommendations for financial services.
As a PCAF signatory, Oaktree has pledged to measure and report on its portfolio GHG emissions within three years, and will work with other members to improve the reliability of these metrics, and to define emissions target-setting strategies for financial institutions.
Priya Prasad Bowe, Head of ESG at Oaktree, said:
“Oaktree is committed to strengthening its ESG practices through reliable data and tracking. PCAF’s foundational work to harmonize GHG reporting has helped us pilot carbon accounting in our portfolios. We look forward to learning from and contributing to the development of a single, common standard, helping the industry better understand our risk and impact.”