We are excited to announce that we have joined the Platform for Carbon Accounting Financials (PCAF), a global industry-led initiative for financial institutions to measure and disclose the greenhouse gas emissions of their investments. We are joining over 50 financial institutions from around the world to address climate change, decarbonize our economy, and align with the Paris Climate Agreement.
Boston Common is the first asset manager in North America to join PCAF. As part of this commitment, we will annually disclosure our portfolio-level carbon footprint. PCAF is a collaborative platform that allows us to learn from other members on best practices for carbon accounting. The goal is to work together to develop a global methodology that is transparent and uniformed so carbon accounting becomes a common practice within the financial sector.
In our recent engagement with banks on managing climate risks and opportunities, we encouraged 58 banks to consider joining PCAF to inform their approach on assessing financed carbon emissions. We consider joining PCAF a best practice for the financial sector. By joining PCAF, banks have the potential to accelerate decarbonization of lending portfolios, increase understanding of climate risks to people and planet, and develop a science-based approach to risk management.
Portfolio level carbon accounting is a crucial tool to measure greenhouse gas emission and carbon risk at the company and sector levels. Our portfolios’ carbon footprints inform our investment decision-making and engagement process. We seek companies that are not only making efforts to reduce their GHG emissions, but also those that have demonstrated low-carbon footprints. Our investment strategy favors companies with energy-efficient products and processes over those with more resource-intensive alternatives and aims to foster the low-carbon transition.
We are proud to be the first asset manager to join PCAF in North America, and we are excited for our new partnership to not only advance our own carbon accounting practices but to more publicly support a framework we have asked banks to use.