Banks Restrict Emissions Accounting in Bond and Stock Sales

Banks working on global standards for accounting carbon emissions in bond or stock sales have voted to exclude two-thirds of these emissions from their own carbon footprint, according to sources. This decision, if upheld, would put banks at odds with environmental advocates who argue that banks should take full responsibility for emissions generated by activities financed through bonds and stock sales. The majority of banks in the working group supported a 33% accounting threshold, while at least two dissented, advocating for 100%. The final decision will be made by the Partnership for Carbon Accounting Financials (PCAF) board. The accounting standard will not be mandatory, but PCAF hopes that other banks will follow the standard that emerges.