Japan-based securities and investment banking company Nomura announced today has joined the Partnership for Carbon Accounting Financials (PCAF), committing to measuring and disclosing the climate impact of loans and investments.
The PCAF is a global partnership of more than 230 financial institutions, with a mission to develop and implement a harmonized approach to assess and disclose the greenhouse gas (GHG) emissions associated with loans and investments. In November 2020, the PCAF launched the Global GHG Accounting and Reporting Standard for the Financial Industry, designed to provide a standardized, robust and clear way for banks, asset managers, and asset owners to measure and report the GHG emissions impact of their loans and investment portfolios.
Nomura’s participation marks the continuation of rapid growth for the PCAF in Japan. The first Japanese financial institution to join the partnership was Mizuho in July 2021. In November, the PCAF launched a Japan coalition, aimed at promoting the measurement and disclosure of GHG emissions in the Japanese financial sector and to foster collaboration to enable Japanese signatories to improve their data quality and align portfolios with the Paris Agreement.
Since that time, the PCAF membership has grown significantly in Japan, reaching 15 institutions with today’s announcement.
Nomura recently announced a series of climate commitments, including a pledge to transition its lending and investment portfolios to be in line with achieving net zero by 2050, as well as a target to reach net zero GHG emissions in its operations by 2030. Additionally, in September, Nomura joined the Net-Zero Banking Alliance, convened by the UN Environment Program Finance Initiative, and part of the Glasgow Financial Alliance for Net Zero.