Financed Emissions Initiative - Financial Sector Guidance on GHG Accounting and GHG Risk Management

Greenhouse Gas Protocol (GHGP) is partnering with UNEP Finance Initiative (UNEP FI) to develop guidance to its Corporate Value Chain (Scope 3) Standard for the financial sector. The guidance will help financial institutions better account for, report on and manage risks from financed Greenhouse Gas (GHG) emissions. The end product of this work will be two guidance documents: 1) guidance on accounting and reporting of financed emissions and 2) guidance on GHG-risk management for the financial sector.

Background

As part of a transition to a low-carbon economy, the financial sector must better understand its exposure to GHG emissions. Today most banks only measure the emissions of their own operations which pale in comparison to those of their lending and investing portfolios (their financed emissions). Over the past ten years over a dozen methods to measure financed emissions have been developed by financial institutions and advocacy groups. However, the level of financed emissions reporting remains low. One reason is the lack of an internationally accepted accounting methodology tailored to the needs of the financial sector.

Beyond a widely accepted accounting methodology, financial institutions also seek ways to assess GHG-related risks to their business. Today’s banks face growing stakeholder concerns over risks to GHG-exposed investments and loans. Risks range from lower returns on GHG-intensive investments to stranded high-carbon assets. The probability of these risks coming to fruition increases as we move towards a carbon-constrained future economy.

The GHGP Financial Sector Guidance will create a robust, harmonized approach to Scope 3 GHG accounting and GHG-related risks in the financial sector. The purpose of this guidance is to foster greater transparency, a better-informed dialogue among stakeholders and help banks shield themselves from GHG-related risks.

The launch of this initiative follows an extensive, year-long scoping phase that affirmed the need for the guidance. The GHGP Financial Sector Guidance will be developed over the next two years through an inclusive, multi-stakeholder process. The guidance will be a supplement to the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard, and will also build on the relevant methodologies that already exist.

More information

To join the mailing list and receive project updates, including the call for participation in the Technical Working Groups, please complete the form at the bottom of this page.

For any additional questions, please contact Cynthia Cummis at ccummis@wri.org, or contact UNEP FI at carbon.disclosure@unepfi.org.

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Project Partners





Documents

Title Date Size

Advisory Committee Meeting - Summary of Outcomes

May 2014 265 KB

Concept Note - GHG Protocol Financial Sector Guidance

February 2014 450 KB

Terms of Reference for Technical Working Group Memebers

November 2013 150 KB

Summary of Outcomes from Advisory Committee Meeting #1

October 2013 150 KB

Press Release for Financial Sector Guidance

October 2013 150 KB

New York Scoping Workshop Summary

April 2013 300 KB

New York Scoping Workshop Agenda

April 2013 238 KB

New York Scoping Workshop Presentations

April 2013 2.13 MB

London Scoping Workshop Summary

February 2013 258 KB

London Scoping Workshop Agenda

February 2013 538 KB

London Scoping Workshop Presentations (part 1)

February 2013 1.4 MB

London Scoping Workshop Presentations (part 2)

February 2013 840 KB

Scoping Survey Results

January 2013 538 KB

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