Vancity discloses greenhouse gas emissions from its loans and

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Partnership Carbon Accounting Methodology Used to Measure Funded Emissions

Disclosure is the first step towards Vancity’s zero-zero target by 2040

TERRITORIES MUSQUEAM, SQUAMISH and TSLEIL-WAUTH NATIONS and VANCOUVER, BC, June 24, 2021 (GLOBE NEWSWIRE) – Vancity today announced the public disclosure of its funded greenhouse gas emissions (GHG) – from loans as well as investments, which it manages on behalf of members. Applying the Partnership for Carbon Financial Accounting (PCAF) methodology, Vancity’s disclosure provides a better understanding of its environmental impacts under the Paris Agreement and sets the stage for setting interim climate targets for 2025. This accounting allows Vancity to generate the baseline data needed to reach zero on its roadmap.

As part of a global partnership launched in 2019, the PCAF standardizes greenhouse gas accounting for the financial sector, providing a consistent approach to estimating and disclosing greenhouse gas emissions financed by loans and investments. The PCAF is used by asset owners, asset managers and financial institutions to support a wide range of climate initiatives, and PCAF members receive C $ 50 trillion from financial institutions around the world. Vancity was the first Canadian financial institution to join the PCAF as a working group member to contribute to what is now The global standard for accounting and reporting of greenhouse gas emissions in the financial industry

Vancity’s projected financial and operating emissions for 2020 are as follows:

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/2d183f2c-3f58-4bca-a902-f385f76ad63c

Key results:

  • While these preliminary results are estimates and are mostly based on sector, building or vehicle averages, they provide meaningful information and a starting point for future disclosures. The results also highlight the need to improve data availability across the sector.
  • The funded emissions from Vancity’s lending are currently estimated to be 36 times the emissions from production. BUT Climate Disclosure Project Report The average difference between lending and operations in the banking sector is estimated to be close to 700 times.
  • Vancity’s commercial real estate portfolio (loans used to buy and refinance commercial real estate) is responsible for most of the emissions, while motor vehicle loans generate the highest emissions for every dollar of loan.
  • Most of the emissions associated with residential mortgage lending are generated by detached houses and associated with the use of natural gas.
  • A significant source of emissions generated by Vancity’s general business loans comes from the construction and renovation of buildings, a sector where emissions are about 10 times that of any other sector supported by the credit union.

While many financial institutions have to grapple with fossil fuel emissions, Vancity does not lend or invest directly in the sector, and most of the funded emissions come from its mortgage portfolio. Findings from this disclosure point to opportunities for maximum reduction, such as product development and partnerships, and the provision of information that will help members affordably retrofit homes and replace gas heating and cooling systems with lower emission solutions.

“Coping with the climate crisis requires an urgent, system-wide response, and financial institutions must take ambitious action – even if it means changing the way we do business. Reliable climate accounting and disclosure are at the heart of the required shift, ”said Christine Bergeron, President and CEO of Vancity.

“What matters is what you can measure,” Christina said. “When the financial sector decides that emissions are important, it becomes a priority for the economy as a whole. Climate targets must be accompanied by action to reduce emissions. To do this, you need to know where you start from. Vancity’s disclosure is voluntary and we will continue to report each year, but Canada’s financial system needs a standardized approach to climate risk metrics if we are to understand the broader risks associated with the climate crisis, ”she continued. …

“We are delighted to see Vancity continue to set an example in the region, not only as one of the first companies to adopt the PCAF, but also as one of the first financial institutions in North America to measure and disclose its funded emissions using the PCAF standard,” said Nicole. Labutong, PCAF Regional Leader for North America.

Vancity will disclose its emissions annually in an effort to improve the quality and availability of data as it builds intermediate targets based on scenarios starting with 2025 targets. The Credit Union is committed to achieving zero emissions across its entire loan portfolio by 2040.

Supplementary information

  • Vancity set zero for 2040 in January 2021.
  • In April 2021, Vancity became the first and so far the only Canadian financial institution to join Banking Alliance Net-Zero
  • In 2020, Vancity pledged its support for the Climate Financial Disclosure Task Force (TCFD)
  • In 2019, the credit union signed the Global Banking Alliance for Climate Change and joined the Partnership for Carbon Accounting Financial Accounting (PCAF), pledging to measure and disclose the climate impact of its loans and investments.
  • Vancity is also a member of the United Nations Environment Program Finance Initiative (UNEP FI). A collective commitment to fighting climate changewhich requires signatories to set and publish targets for aligning their portfolios in order to aim for a trajectory of 1.5 degrees Celsius, based on scientifically established climate scenarios.
  • Vancity President and CEO Christine Bergeron represents North America on the UNEP FI Banking Board.

For more information on Vancity’s climate disclosures and commitments, please visit rethink.vancity.com/climatedisclosures

About Vancity
Vancity is a value-based financial cooperative serving the needs of more than 550,000 owner members and their communities, with offices and 55 subsidiaries located in Metro Vancouver, Fraser Valley, Victoria, Squamish and Alert Bay, in the Coastal Peoples. salish and kwakwaka’wakw. Vancity is Canada’s largest public credit union with $ 30.5 billion in assets plus assets under management. Vancity uses its assets to help improve the financial well-being of its members, while helping to develop healthy communities that are socially, economically and environmentally sustainable.

About PCAF
The Partnership for Carbon Accounting Financial Accounting (PCAF) was launched globally in September 2019. Currently, over 130 banks and investors have signed up to the PCAF initiative. PCAF members work together on collaborative development The global standard for accounting and reporting of greenhouse gas emissions in the financial industry to measure and disclose information on greenhouse gas emissions from their loans and investments. By doing so, PCAF members are taking an important step in assessing climate-related risks, setting goals in line with the Paris Climate Agreement, and developing effective strategies to decarbonize our society.

For more information see https://carbonaccountingfinancials.com/

Media Contact:
Nora Eastwood | Vancity
mediarelations@vancity.com
T: 778-837-0394

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