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.