The average global temperature on earth has been rising significantly and scientists attribute this to greenhouse gases (GHGs), calling for the world to transition to a low-carbon economy. While banks emit little GHGs to run their operations, they finance the emissions of other companies through loans and investments. These “financed emissions” need to be understood if a bank is to effectively assess its GHG footprint and take action.
The environmental team at this North American bank is responsible for aggregating information from across the bank’s divisions to include in a report for the Task Force on Climate-related Financial Disclosures (TCFD). The team was also recently charged with helping quantify the bank’s financed emissions and setting reduction targets, as customers and other stakeholders continue to ask for more transparency and new regulations regarding disclosure have emerged.