Morgan Stanley’s announcement that they are joining the Partnership For Carbon Accounting (PCAF) is evidence of the gradual shift in the banking sector towards meaningful climate action. It is also a big victory for values based banking and for all those clients and customers who have decided to put their money where their values are.
Almost two years ago, Amalgamated Bank announced that we would work with other North American banks to develop a methodology for measuring the carbon impact of our loan and investment portfolio. In order to follow through on a previous commitment to align with the Paris Climate Agreement, we needed a way to measure and then to manage our portfolio and products to lower emissions.
That was a values based decision. It was borne of a commitment to the greater good. It was also premised on the belief that if we led, and if we did so in a collaborative way with other banks, we would be able to build something that all banks and investors could use. Ultimately, we could support the whole financial sector in taking action to reduce carbon.
Measuring what matters is an axiom of the business world, and measuring financed emissions is becoming a cornerstone of climate finance. For the last year we have been working with banks globally to expand on this work and now have more than 65 banks and investment managers committed to the measurement and disclosure of financed emissions through PCAF. Over the last year, part of that quiet work has been with the team at Morgan Stanley, which brings with it expertise in a wide range of global transactions, analytical capacity and economic expertise.
Morgan Stanley’s decision to join PCAF and to step up and join the small group of institutions that are managing the work globally is a testament to their commitment. It is also evidence of the important vision of the values based banks that have been driving this work since the Dutch commitments at the Paris Climate Summit in 2015 and since Amalgamated Bank made its announcement in 2018.
As we all work towards critical action and agreements at the next climate summit, all the pieces are falling into place to build a net-zero economy.
Read more about Morgan Stanley's announcement in Politico.