Sustainability Blog Series

Partnership for Carbon Accounting Financials Standard Part B: Facilitated Emissions

Partnership for Carbon Accounting Financials Standard Part B: Facilitated Emissions

Welcome back to our blog series on Banks, Borrowers, and Climate Change. Today we will be returning to the PCAF Global Accounting and Reporting Standard by taking a closer look at Part B: Facilitated Emissions and what it means for financial institutions and reporting requirements. Part B of the PCAF standard focuses on “facilitated emissions,” which are emissions associated with services provided by financial institutions in capital market transactions. These emissions are distinct from financed emissions, which are based on on-balance sheet exposure (e.g., loans and investments). The temporary nature of facilitated emissions means that financial institutions do not usually take on financial (credit) risk in facilitated transactions.

Banks, Borrowers and Climate Change: The SEC Releases its Rule on Climate Disclosure: Potential Impacts to Your Business

Banks, Borrowers and Climate Change: The SEC Releases its Rule on Climate Disclosure: Potential Impacts to Your Business

Back in March of 2022, the New York Times reported the SEC proposed a rule that would require public companies to share information about how they affect climate change with both their shareholders and the federal government. The intent of the rule was to allow investors to gain a better idea of how climate change might create risks to companies, leading to the investors being able to make informed decisions regarding stock purchases or sales.

Banks, Borrowers and Climate Change: An Overview of the PCAF Global Accounting and Reporting Standard

Banks, Borrowers and Climate Change: An Overview of the PCAF Global Accounting and Reporting Standard

In the pursuit of a sustainable future, the financial industry plays a crucial role in mitigating climate change by aligning its practices with environmentally conscious standards. The Partnership for Carbon Accounting Financials (PCAF) has emerged as a key player in this space, introducing the Global GHG Accounting and Reporting Standard specifically tailored for the financial sector. This groundbreaking standard is designed to measure and disclose the greenhouse gas (GHG) emissions related to business sectors associated with financial activities, providing transparency and accountability in the fight against climate change. While the SEC’s proposed Climate Disclosure Rule awaits its verdict, that doesn’t mean financial institutions are off the hook.

Climate Action in Financial Institutions Initiative: Inspiration for the PCAF Global Accounting and Reporting

Climate Action in Financial Institutions Initiative: Inspiration for the PCAF Global Accounting and Reporting

Welcome back to our Banks, Borrowers, and Climate Change series! In case you missed our introduction to the series, you can read it here. Our first blog in the series, “Banks, Borrowers and Climate Change: How Disclosure of GHG Emissions Will Impact the Lending Process for Publicly Traded Corporations” is also available. The bottom line: The SEC will require public companies, including banks, to disclose annual carbon emissions from their operations in their annual report.

Banks, Borrowers and Climate Change: How Disclosure of GHG Emissions Will Impact the Lending Process for Publicly Traded Corporations

Banks, Borrowers and Climate Change: How Disclosure of GHG Emissions Will Impact the Lending Process for Publicly Traded Corporations

The EI Group, in collaboration with Environmental Risk Innovations (ERI), recently launched a joint blog series which outlines the impact of the SEC’s proposed climate disclosure rule, which will require all publicly traded corporations, including banks, to disclose their direct and indirect GHG emissions. For manufacturers, carbon emissions are generally those resulting from the products they produce (direct), from the production of energy used in their production process (indirect) and their supply chain (indirect). For publicly traded banks, this concept is slightly more abstract.

The SEC Targets Financed Emissions: Banks, Borrowers and Climate Change

The SEC Targets Financed Emissions: Banks, Borrowers and Climate Change

As climate change becomes an increasing risk to financial stability—whether by natural disasters such as hurricanes, rising sea levels and wildfires, or to corporations from increased costs associated with transition to a lower-carbon economy—financial institutions are exploring ways to integrate this segment of risk management into their operations. This initiative is being driven by a standardized climate disclosure rule anticipated for release by the Securities and Exchange Commission (SEC) in early 2024.

Why Your Company Needs to Start Re-Evaluating its ‘Carbon Neutral’ Claims

Why Your Company Needs to Start Re-Evaluating its ‘Carbon Neutral’ Claims

In 2026, the European Union (EU) will begin enforcing a new agreement that would ban misleading advertisements and provide consumers with better product information to curb greenwashing and early obsolescence of goods. Generic environmental claims such as “environmentally friendly,” “natural,” “biodegradable,” “climate neutral,” or “eco” will be banned unless the company can provide evidence of recognized “excellent environmental performance relevant to the claim.”

Achieving Zero Waste to Landfill: A Sustainable Journey

Achieving Zero Waste to Landfill: A Sustainable Journey

In a world struggling with environmental challenges, adopting a zero waste to landfill approach is a significant step towards a more sustainable future. The idea behind this concept is simple but powerful: minimize the waste you produce to the extent that nothing ends up in a landfill. While achieving zero waste might seem like an impossible goal, it is an essential endeavor that individuals, communities and businesses can work towards.

What the Hawaiian Wildfires Mean for Climate Sustainability

What the Hawaiian Wildfires Mean for Climate Sustainability

The current wildfires in Hawaii, like wildfires anywhere, have significant implications for climate sustainability. While Hawaii is known for its lush landscapes and tropical climate, it is not immune to the effects of climate change and the associated increase in the frequency and intensity of wildfires.

Using ISO to Drive ESG

Using ISO to Drive ESG

Today, ISO certification is synonymous with quality. There are numerous benefits obtained through ISO certification, including technological, economic and social advantages. You can also improve the quality of your processes and products, better understand your business, enhance the consistency of your operations, reduce waste, save money and gain international recognition. Pursuit of ISO certification is becoming the norm among competitive business operations, especially those who target larger corporations to be an integral part of their supply chain.

Sustainability Hurdles to Small and Medium-Sized Enterprises

Sustainability Hurdles to Small and Medium-Sized Enterprises

In EI’s blog series on sustainability in business, the latest article, “Small and Medium-Sized Enterprise (SME) Involvement is the Key to Sustainability Success,” discussed the significant contribution of SMEs to carbon emissions via their supply chain for large corporations. When compared to the larger FORTUNE 1000 clients they support, one would logically assume that reducing carbon emissions for SMEs would be much simpler and more straightforward given their limited geographic footprint, shorter supply chains, reduced work-related travel and smaller office/workspaces to heat/cool and light.

5 Do’s and 5 Don’ts for Recycling

5 Do’s and 5 Don’ts for Recycling

We all want to do our part in protecting the planet from unnecessary waste, but sometimes that good intent can lead us to putting things we shouldn’t in our recycling bins. According to Republic Services, here are 5 things that don’t belong in your standard curbside bins: plastic bags, toys, clothing, disposable diapers, and yard debris.

Save Money, Cut Pollution, Create Jobs: Today is Energy Efficiency Day

Save Money, Cut Pollution, Create Jobs: Today is Energy Efficiency Day

It sure seems like every cause has its day. Just in October alone, there is National Get Funky Day, National Do Something Nice Day, National Taco Day, National Vodka Day, National Manufacturing Day…and the list goes on and on.

Well today, October 5th, 2022 is Energy Efficiency Day and it is a good reminder of the value of saving energy.  The Energy Efficiency Day website’s tagline is “Save Money. Cut Pollution. Create Jobs.”

Small and Medium-Sized Enterprise (SME) Involvement is Key to Sustainability Success

Small and Medium-Sized Enterprise (SME) Involvement is Key to Sustainability Success

The headlines surrounding zero carbon emissions have been dominated by some of our largest brands, with the majority of recent progress coming from global corporations looking to reduce CO2 emissions and improve energy efficiency. Much of the initial emission reduction progress by large businesses is due to pressure they are facing from their shareholders and the general public. As a result, the majority of the support, guidelines and incentives available for the development of sustainable programs and for reporting emissions reduction, have been developed for large companies and do not cater to small and medium enterprises (SMEs).

Earth Day to SEC Climate Rule: 50 years in the Making

Earth Day to SEC Climate Rule: 50 years in the Making

The year was 1971. It was second ever Earth Day and it was spring, which meant baseball season. Fighting for the starting catcher job on my high school team, I was scheduled to start later on that afternoon. A couple of friends and I figured to celebrate Earth Day, we’d walk to school. Stopping at a friend’s house along the way, we reached the school campus an hour or two late. Of course, we had to sign in at the front office and receive a late pass, which required each teacher’s signature indicating we were in class; so, there was a record.

Global Recycling Day – Do Your Part and Celebrate the Seventh Resource

Global Recycling Day – Do Your Part and Celebrate the Seventh Resource

Happy Global Recycling Day! Today marks the 4th official recognized “Global Recycling Day.” Originally started in 2018; this day was chosen by Ranjit Baxi, President of the Bureau of International Recycling (BIR), to bring awareness to sustainability through recycling on a global scale. With a rise in the focus on climate change and the effects we all have on our environment; Mr. Baxi designated this day to encourage individuals and nations alike to view recyclable materials differently and promote immediate action.

Sustainability and ISO Management Systems: Are ISO Standards a Bunch of Hooey or a Helpful Sustainability Tool?

Sustainability and ISO Management Systems: Are ISO Standards a Bunch of Hooey or a Helpful Sustainability Tool?

In recent years market drivers have played a more pivotal role in convincing management to embrace a corporate sustainable culture. In fact, even without new regulations or legal requirements, 90% of major US companies published a sustainability report in 2019, up from 20% in 2011. Sustainability has become a means of gaining market visibility and differentiation. This shift in business is about drivers in the marketplace and not regulation. Sustainability efforts at your facility may be driven by the requirements of multi-national companies with headquarters in Europe or possibly the requirements of customers within your global supply chain.

Selling Corporate Sustainability to Management

Selling Corporate Sustainability to Management

Convincing employees and management to embrace corporate cultural change is certainly nothing new. One needs to look no farther than the successful business models which promote occupational safety, aimed at lowering workplace accidents! A successful occupational safety program requires a cultural change and encourages participation among the entire workforce. Just like safety, promoting a sustainable culture at work is simply good business and yields a significant, long-term ROI.

Sustainability Sells: Building Brand Early in Your Sustainability Program

Sustainability Sells: Building Brand Early in Your Sustainability Program

Once the workforce has been recruited for the challenge, your sustainability program is ready for the next step: building sustainability into your company’s brand! It is well documented that sustainability sells. 66% of all consumers indicate they would pay a premium for a product if it came from a sustainable brand, with 70% of millennials having a similar view. More significant, 90% of CEOs feel that sustainable brands are key to success in business.

Launching a Sustainability Program at Your Facility? Engaging Employees as Sustainability Stakeholders

Launching a Sustainability Program at Your Facility? Engaging Employees as Sustainability Stakeholders

Engaging employee stakeholders is critical to galvanizing corporate sustainability culture and the key driver for a long-term successful sustainability program. Eliciting employees to own corporate sustainability transform them into sustainability advocates by leveraging the actions of the entire workforce, which provide them an avenue to contribute to the future well-being of the company/society and become part of the larger, global sustainability movement.

LEED for People

LEED for People

Commercial real estate managers began the process of including environmental sustainability in building design over 20 years ago and the certification of buildings as such was soon to follow.