PCAF launches consultation on upcoming GHG emissions standard
he Partnership for Carbon Accounting Financials (PCAF) has launched a public consultation on the Global GHG Accounting Reporting Standard for the Insurance Industry Progress Report.
The PCAF has published a draft which sets the foundation for an upcoming standard to measure and disclose greenhouse gas (GHG) emissions of stakeholders loans and investments.
They will have until 26 August to provide their feedback.
It 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, and reporting methodology, requirements, recommendations, and metrics.
This consultation follows a previous PCAF consultation on the Insurance-Associated Emissions Scoping Document launched in March.
In the Document stakeholders can find a discussion on the differences between insurance-associated emissions and financed emissions; and a presentation of the scope and principles of the GHG accounting of insurance-associated emissions.
As well as an exploration of possible approaches for the attribution methodology to calculate absolute emissions associated with insurance underwriting portfolios.
PCAF has highlighted the increasing demand by the insurance industry and other stakeholders for tools to measure and report (GHG) emissions, commenting:
“There is a need to develop a set of global, standardised methodologies for measuring and disclosing the GHG emissions associated with insurance and reinsurance underwriting portfolios for accounting purposes.”
Currently, more than 290 financial institutions have subscribed to the PCAF initiative where participants work together to jointly develop the Global GHG Accounting and Reporting Standard for the Financial Industry.