Carbon Footprinting for Banks
Research Paper
November 28, 2023
Preview
Measuring financed emissions is an increasingly relevant process that banks may need to consider in the face of rising stakeholder expectations. It is also the first step for banks in understanding the carbon exposure from their lending and investment activities, which may in turn help define strategies and actions for moving toward a net-zero transition.
In this report, the first in a series on net-zero alignment for banks, we present an overview of financed emissions and demonstrate how a bank can use MSCI Climate and Net-Zero Solutions to calculate its financed carbon footprint using a fictitious bank's balance sheet as an example.
In subsequent reports we will cover other steps in banks' net-zero alignment journey, including sector-specific physical emissions-intensities calculations, target setting and stewardship.
Financed emissions vs. loan size and emissions intensity across sectors in the loan book
Data as of Aug. 10, 2023. Source: MSCI ESG Research
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