Phoenix Group has joined the Partnership for Carbon Accounting Financials (PCAF) to help it assess and report on carbon emissions for its investments.

The PCAF is a global initiative of financial institutions that collaborate to develop and implement an approach for assessing and disclosing the greenhouse gas emissions of their loans and investments.

Phoenix stated that the approach is becoming the “market standard” for measuring these emissions.

The long-term savings and retirement business has already pledged to be net zero in its investment portfolios by 2050 and in its operations by 2025.

The PCAF has developed greenhouse gas accounting methodologies that can be applied by financial institutions that have exposure to listed equity and corporate bonds, business loans and unlisted equity, project finance, mortgages, commercial real estate, and motor vehicle loans. 

It works with the Net Zero Asset Owner Alliance, The Science Based Targets Initiative and the Paris Aligned Investment Initiative to expand and standardise its approach.

Currently, the PCAF represents financial bodies with assets totalling more than $40trn (£28.8trn).

Commenting on the announcement, Phoenix Group chief investment officer, Michael Eakins, said: “We are delighted to have become the first UK insurer to join PCAF as we continue to make headway towards our 2050 net-zero commitment for our investment portfolio.

“By committing to PCAF, we are ensuring that we use best market practice when calculating the greenhouse gas emissions of our investment portfolio and we call on others within the financial services ecosystem to do the same.

“At Phoenix, we understand that to achieve a greener and more sustainable future, it will require collaboration across the financial sector and we stand ready to play our part in helping to achieve this.”

PCAF executive director, Giel Linthorst, added: “We are pleased to welcome Phoenix Group to the 120+ financial institutions globally that participate in PCAF.

“Phoenix Group’s addition to the growing number of insurers participating in PCAF highlights the diversity of financial institutions committing to measure and disclose their financed emissions using the PCAF Standard.”

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