Indian Overseas Bank (IOB) has taken a significant step towards sustainability by becoming a signatory of the Partnership for Carbon Accounting Financials (PCAF). This decision underscores the bank’s dedication to measuring and reporting its greenhouse gas (GHG) emissions linked to its financed activities. Through this initiative, IOB is not only aligning with global best practices in the financial industry but also strengthening its contribution to India’s path toward a net-zero future.
What Is the Partnership for Carbon Accounting Financials (PCAF)?
PCAF is a global initiative that helps financial institutions measure and disclose the carbon emissions associated with their financing activities. The partnership seeks to establish a standardized approach for banks and other financial entities to monitor and report their carbon footprints. By becoming a part of PCAF, IOB is embracing a globally acknowledged methodology for greenhouse gas accounting, promoting transparency and playing a role in the battle against climate change.
What’s the Bigger Picture for Indian Banks?
IOB’s commitment reflects a broader trend in India’s banking sector toward sustainable finance. In September 2024, Union Bank of India became the first major Indian bank to join PCAF, underscoring the growing focus on climate risk management within the industry. By aligning with global standards, IOB and other banks are actively supporting India’s environmental, social, and governance (ESG) goals. This collaboration not only advances the country’s climate targets but also fosters responsible investment practices.
