Financial services companies are critical players in driving the shift to a low-carbon economy, with more of these now actively managing greenhouse gas emissions in their value chains. Last year 70 percent of financial services companies that responded to the Carbon Disclosure Project survey reported on at least one Value Chain (Scope 3) category. While most reported business travel, a few — Citibank and HCP, for example — cited “financed emissions,” or emissions associated with investments in equity, bonds and project finance.
Behind the scenes, financial services companies are gearing up to do much more. A recent survey by the GHG Protocol has revealed broad interest in the sector to better understand, measure and manage financed emissions, despite concerns about the complexity of developing a standardized methodology. Furthermore, banks highlighted project finance and corporate finance as a priority for consideration, whereas other investors emphasized equity investments and bonds.
Next page: Managing financed emissions