Schneider Electric Joins PCAF To Advance Emissions Reporting

Schneider Electric, a global leader in energy management and sustainability consulting, is stepping up efforts in advancing climate action with its joining the Partnership for Carbon Accounting Financials (PCAF) Accredited Partnership Program. Schneider Electric has become the first global sustainability consultancy to do so. The new partnership, in effect from January 1, 2025, will play a transformational role in enabling financial institutions to measure and report their financed emissions in a more accurate manner, thereby allowing them to align with global decarbonization goals.

This landmark collaboration is reflective of Schneider Electric's focus on arming organizations with strong tools and methodologies for addressing carbon complexity. Financed emissions, which refer to the greenhouse gas emissions linked with investments, loans, and other financial activities, have long been a problem from the perspective of proper measurement and reporting. By utilizing the well-established GHG accounting methodologies of PCAF, Schneider Electric looks forward to filling this gap by promoting greater transparency and accountability in the financial emissions reporting process.

According to Erik Mohn, Vice President of Global Sustainability Consultancy & Reporting Services at Schneider Electric, "We are thrilled to be PCAF's first global sustainability partner, which reflects our commitment to arming organizations with the tools and expertise required to navigate financed emissions accounting effectively." Mohn further explained that this partnership will not only enhance the capacity of financial institutions to measure and disclose investment-related emissions but also help them advance their overall decarbonization strategies, thus opening the way to a more sustainable and equitable global economy.

PCAF, a global collaboration of financial institutions, offers a harmonized framework for assessing and disclosing the GHG emissions related to loans and investments. Incorporation into the Accredited Partnership Program by Schneider Electric will entail rigorous training from the PCAF Academy, so that the experts in the company are well-informed about the methodologies of PCAF. With this training, Schneider Electric can work closely with financial institutions in adopting decarbonization strategies while enhancing their GHG disclosure practices.

Bart Van Lunteren, PCAF's Head of Partnerships, expressed welcome for the company's decision to participate and called it an important step towards advancing the work of the organization. "We look forward to working closely with Schneider Electric in order to increase the capabilities of financial institutions regarding measuring and reporting their carbon emissions," said Bart Van Lunteren. He further added that the partnership could unlock new investment opportunities by bringing financial portfolios into alignment with sustainability objectives, which would contribute to global climate resilience.

As the world is now increasingly under pressure to act on climate, the financial sector has come under increasing scrutiny for its role in financing emissions-intensive industries. Accurate measurement and reporting of financed emissions are critical for enabling financial institutions to assess their climate impact and take informed steps toward reducing it. Schneider Electric's expertise in sustainability consulting, coupled with PCAF's globally recognized GHG accounting framework, promises to accelerate progress in this area.

This partnership also highlights a broader trend within the financial sector: integration of ESG considerations is becoming a cornerstone of investment decision-making. In enhancing the transparency and accountability of financed emissions, Schneider Electric and PCAF are supporting financial institutions in their regulatory compliance efforts while nudging a shift toward sustainable investment practices that emphasize long-term environmental and social outcomes.

Further exploration of the collaboration will be made in a dedicated webinar titled "Sustainable Impact Through Financial Accounting," scheduled for January 30, 2025, at 10 AM EST. The webinar will cover emerging trends in ESG and financial accounting and how financial institutions can leverage advanced carbon accounting methodologies to achieve their sustainability goals.

This partnership represents Schneider Electric in this latest chapter of its long history of commitment to sustainability and innovation. Recognized as a leader in energy efficiency and sustainability consulting, it has repeatedly promoted initiatives aimed at reducing the global carbon footprint while promoting sustainable development. Joining forces with PCAF will help Schneider Electric amplify impact by providing financial institutions with the tools and expertise required to drive meaningful climate action.

This partnership announcement arrives at a point when regulatory frameworks worldwide are more heavily emphasizing disclosures in relation to climate. In light of these factors, it is increasingly imperative for financial institutions to account for the environmental impacts of their investment decisions. Accurate measurement and reporting of financed emissions thus become integral parts of operations for financial institutions. Schneider Electric’s collaboration with PCAF not only addresses this regulatory imperative but also positions the company as a key enabler of sustainable finance.

As global efforts to combat climate change intensify, partnerships such as this will be crucial for bridging the gap between ambition and action. Combining PCAF's rigorous methodologies with Schneider Electric's know-how in sustainability consulting, this partnership offers a powerful model in driving transparency, accountability, and progress in the financial sector.

Ultimately, this collaboration reflects a shared vision of a future where financial systems are aligned with the principles of sustainability and equity. This is being enabled by Schneider Electric and PCAF by empowering financial institutions to measure, report, and reduce their financed emissions. They are thereby assisting in creating a more resilient and sustainable global economy-one where investments are not only profitable but also good for the planet and society at large.