Coop’s ESG Project Manager Aleksei Akulistõi says that as the bank is striving to move towards climate neutrality, it has begun mapping its impact on the environment. “PCAF will help us measure the carbon footprint of our loan portfolio in a way that’s comparable to other banks and financial institutions around the world,” he explained.
Since the majority of investments reach the economy via banks, Akulistõi added, the finance sector is expected to take a leading role in promoting the green transition. “We do also map the impact our branches and employees have, but we know that the most significant influence banks have on the environment stems from their lending and investment activities,” he said. “That’s why we consider it so important to assess the climate impact our portfolio has, and to make it public and reduce it.”
At first Coop Pank will be taking a more general, sector-based approach to assessing impact, with its reports becoming more detailed with each passing year. “None of this will bring about any additional obligations for our clients,” Akulistõi noted. “Instead, based on the results, we’ll be able to give them an idea of the impact they’re having on the climate. Where needed, we’ll also be able to partner up with them in reducing climate impact and help them fulfil the guidelines and regulations implemented by the European Union.”
PCAF is a global partnership of financial institutions that work together to develop and implement a harmonised approach to assessing and disclosing the greenhouse gas (GHG) emissions associated with their loans and investments. This approach provides financial institutions with the starting point required to set science-based targets and align their portfolio with the Paris Climate Agreement.
Estonian-owned Coop Pank is one of the five universal banks operating in Estonia. It has 133,100 everyday banking clients. It utilises the synergy generated between retail trade and banking and brings everyday banking services closer to where people live. The strategic owner of the bank is the local retail chain Coop Estonia, which has a sales network of 330 stores.
Coop Pank to assess its loan portfolio climate impact
In order to determine the impact that its lending and investment activities have on the environment, Coop Pank has joined the Partnership for Carbon Accounting Financials (PCAF).