Improved data model to disclose climate impact of loans and investments

The Partnership for Carbon Accounting Financials (PCAF),  SBR Nexus and Logius (i.e. the digital government service of the Netherlands Ministry of the Interior and Kingdom Relations (BZK)) are partnering to develop an improved model to process data required to assess the climate impact of loans and investments. With accurate data and disclosure, financial institutions can make better decisions to reduce the climate impact associated with their investments. This way, they can support the alignment of financial flows with the goals of the Paris Climate Agreement.

The biggest climate impact banks, insurers, pension funds and other financial institutions have is through their customers. Institutions can invest in or provide loans to companies that in turn have considerable carbon emissions. At the same time, institutions can support carbon emission reductions by investing in renewable energy or other sustainable projects. This way, the financial sector has an important role in financing the energy transition.

Standardization of methods and data

By signing the Dutch Climate Agreement, the Dutch financial sector committed themselves to measure and disclose the climate impact of their loans and investments. Harmonized methods and standards across institutions nationally and abroad, are crucial. PCAF is an open standard of carbon accounting and is increasingly adopted by financial institutions globally.

To apply such a standard, up-to-date data on carbon emissions from households, companies and other institutions is key. To collect such data, PCAF, SBR Nexus and Logius will improve data definitions and dataflows, map access to data sources and stimulate the use of source data. They will determine the necessary data infrastructure and test a new data exchange concept based on standardized business reporting (like XBRL).

This partnership develops a data exchange that is needed to measure and disclose our climate impact. This is in support of the Dutch Climate Agreement that is backed by fifty Dutch financial institutions.” – Tjeerd Krumpelman, Chair, PCAF Netherlands

Disclosing the climate impact of loans and investments is a great way to demonstrate the financial sector’s impact and take ownership. The universal data model in development will ensure quality and consistency and reduce time spent on analysis.

Working group data model and testing data exchange

The working group consists of representatives from:

  • PCAF Netherlands Secretariat (staffed by Guidehouse)
  • Logius
  • SBR Nexus
  • ABN AMRO Bank
  • ASN Bank
  • NIBC
  • Rabobank
  • Triodos
  • Visma Connect
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