Portfolio Carbon Initiative Goals and Work Streams
While the GHG Protocol Corporate Standard and the Corporate Value Chain (Scope 3) Standard clarify how companies should account for the greenhouse gas emissions that result from their products and services, more guidance is needed for financial institutions if they are to properly assess climate performance from investing and lending activities.
The Portfolio Carbon Initiative has two goals:
- Provide guidance on how to define, assess, and track climate performance for asset owners and banks
- Provide guidance on how to identify, assess, and manage “carbon asset risks” for financial institutions
The complexity of the financial sector requires that the Portfolio Carbon Initiative operate via three work streams.
- Work stream 1: Asset owner climate performance
This work stream is tailored to asset owners. It will produce two documents: a comparative analysis of current climate performance metrics, followed by climate performance accounting guidance for asset owners.
- Work stream 2: Bank climate performance
This work stream is tailored to banks. It will produce a comparative analysis of current climate performance metrics for banks.
- Work stream 3: Carbon asset risk
This work stream will produce guidance that explains why and when GHG emissions associated with carbon-intensive assets lead to financial risks, as well as how those risks can be assessed and mitigated.