Taking a step forward in contributing towards the global effort of cutting carbon footprint, Caspian Debt now joins the Partnership for Carbon Accounting Financials (PCAF), the first Indian Nonbank finance institution to do so.
Caspian Debt, a debt provider to professionally managed small and mid-market companies that include social enterprises, startups and inclusive finance institutions has become a signatory to the Partnership for Carbon Accounting Financials (PCAF) to develop and implement greenhouse gas (GHG) accounting. Caspian Debt is the first Indian Non-Bank Finance Institution to become a signatory to the PCAF.
What is Partnership for Carbon Accounting Financials (PCAF)
The Partnership for Carbon Accounting Financials (PCAF) is a collaboration between financial institutions worldwide to enable harmonized assessments and disclosures of greenhouse gas emissions financed by loans and investments. With more than 350 financial institutions from six continents, the group is rapidly expanding in North America, Latin America, Europe, Africa and Asia-Pacific. For more information see https://carbonaccountingfinancials.com/.
Measuring Carbon Emission to Curb Climate-related Risks
One of the key challenges faced by financial institutions in addressing climate change is assessing and managing climate-related risks.. Some progressive financial institutions have recognized the significant financial risk associated with climate change and are gradually aligning their business models with the goal of the Paris Agreement. Through PCAF, they are building a common framework towards measuring carbon emissions in their portfolio. By joining the Partnership for Carbon Accounting Financials (PCAF), Caspian Debt has made a concrete commitment to address climate change and promote climate smart investments in its portfolio.
Consistent Approach to portfolio carbon accounting
Two of the Indian financial sector regulators, Reserve Bank of India and Securities and Exchange Board of India have recently indicated policy focus on the mitigation of risks that are arising out of climate change.
With the support of PCAF, Caspian Debt expects to build a comprehensive and transparent method for assessing and disclosing financed emissions. By joining PCAF and building the portfolio carbon accounting system, Caspian Debt will be a first mover in complying with the upcoming regulatory requirements while contributing positively to climate risk management.
“Caspian Debt has always focused on supporting businesses with a positive environmental and social outcome. The partnership with PCAF will provide us a common language and framework for measuring and reporting the carbon footprint of our portfolio, enabling us to better understand our investments. This partnership will further align us with the global goal of addressing as set out in the Paris Agreement” says Avishek Gupta, MD & CEO, Caspian Debt.