ComBank is the first bank in Lanka to join PCAF – the Global Partnership for Carbon Accounting and Financial Information – Adaderana Biz

The Commercial Bank of Ceylon has become the first Sri Lankan bank to join the Partnership for Carbon Accounting Financials (PCAF), a global initiative that enables signatories to measure and disclose the greenhouse gas (GHG) emissions associated with their financial activities.

Commercial Bank is already 100% carbon neutral certified in its operations. The bank’s groundbreaking involvement in PCAF is supported by the International Finance Corporation (IFC) and is a key component of the bank’s climate transition plan, the bank said.

PCAF provides a common methodology for measuring and disclosing the carbon footprint of financial portfolios. This methodology takes into account financed emissions, facilitated emissions and insurance-related emissions, as specified by the Global GHG Accounting and Reporting Standard, enabling consistent reporting across financial institutions.

“At Commercial Bank, global best practices inspire our actions, especially our sustainability initiatives,” said the bank’s Managing Director/CEO, Mr. Sanath Manatunge. “We strive to transcend the boundaries of our environmentally responsible activities and evaluate the impact of our lending to take a holistic approach to environmental, social and governance aspects. Our collaboration with the Partnership for Carbon Accounting Financials marks a significant milestone in this journey and we extend our gratitude to the IFC for its invaluable guidance and support in this endeavor.”

To stimulate sustainable investments, Commercial Bank recently entered into a partnership with the IFC and the European Union (EU), under the ACSIIS programme, to lay the foundation for a transition to net zero emissions.

In addition to its partnership with the International Finance Corporation, Commercial Bank also partners with the Global Green Growth Institute (GGGI) and the Green Building Council of Sri Lanka (GBCSL) to facilitate green financing in Sri Lanka.

The Partnership for Carbon Accounting Financials was launched globally in September 2019. Its primary aim is to support the financial sector in measuring and disclosing the greenhouse gas emissions associated with their financial activities, and to promote transparency, accountability and informed decision-making among financial institutions to address climate change.

Currently, more than 500 financial institutions have committed to the PCAF initiative. PCAF signatories are working together to jointly develop the Global GHG Accounting and Reporting Standard for the financial sector to measure and disclose greenhouse gas emissions associated with portfolios of loans, investments, insurance and other financial products and services. By doing so, PCAF signatories are taking an important step towards assessing climate-related risks, setting targets in line with the Paris Climate Agreement and developing effective strategies to decarbonize our societies.

Commercial Bank is the largest private sector bank in Sri Lanka and the first Sri Lankan bank to be included in the Top 1000 Banks of the World. The bank is the largest lender to Sri Lanka’s SME sector and is a leader in digital innovation in the country’s banking sector. Commercial Bank operates a strategically located network of branches and 966 automated machines across the island and has the broadest international footprint among Sri Lankan banks, with 20 branches in Bangladesh, a microfinance operation in Nay Pyi Taw, Myanmar, and a majority-owned Tier I bank in the Maldives.