Union Bank of India becomes 1st major bank to become signatory of PCAF
Notable because
PCAF is a global partnership of financial institutions (FIs) that aims to advance the assessment and disclosure of financed emissions, particularly those associated with loans and investments. Measuring financed emissions forms the foundation for FIs to conduct scenario analysis, set targets, and disclose progress, which are essential for portfolio alignment. Union Bank's initiative aligns with the RBI's draft guidelines on the 'Disclosure Framework on Climate-related Financial Risks', emphasising the importance of tracking financed emissions.
What to look out for in the months ahead
With the Union Bank aiming to achieve net-zero emissions by 2070, and the RBI guidelines set for adoption by SCBs from FY 25–26 onwards, how will measuring and reporting financed emissions shape the bank's strategy to address transition risks over the mid and long term?
As Union Bank implements the PCAF's standards, will it set a precedent for other banks? Will the next signatory be a private bank taking the lead?