Morgan Stanley has joined the Partnership for Carbon Accounting Financials Steering Committee focusing on measuring financed emissions.
Launched in 2019, PCAF is a collaboration to standardize carbon accounting for the financial sector, enabling a harmonized approach to the assessment and disclosure of greenhouse gas emissions financed by loans and investments. PCAF is used by asset owners, asset managers and banks to support a broad range of climate initiatives. Morgan Stanley is the first major US financial institution to join PCAF’s 66 formal members, which include financial institutions from around the world and represent more than $5.3 Trillion USD in assets.
The measurement of financed emissions, defined by the Greenhouse Gas Protocol as Scope 3 – category 15 emissions, provides important data that financial institutions can use to assess risk, manage impact, meet the disclosure expectations of important stakeholders, and assess progress and pathways to global climate goals.
In addition to its role on the Committee, Morgan Stanley commits to start measuring and disclosing lending portfolio greenhouse gas emissions.