UNEP FI supports the development and adoption of frameworks and indicators for the measurement and disclosure of financial institutions’ i) climate-related risk exposures and ii) alignment with the low-carbon and climate-resilient economy, mainly through the Portfolio Carbon Initiative (PCI).

The world is already transitioning to a low-carbon economy. Financial institutions have the power to expedite and smooth the transition by mitigating the carbon impacts of their investments. The Portfolio Carbon Initiative (PCI) develops resources to guide financial institutions towards greater climate performance and away from the risks attached to carbon-intensive assets.

The Portfolio Carbon Initiative has two goals:

  • Provide guidance on how to define, assess, and track climate performance for asset owners and banks
  • Provide guidance on how to identify, assess, manage, and track GHG-related risks (recently coined transition-risks) for financial institutions

GOVERNANCE  The PCI is a joint initiative of UNEP FI, the World Resources Institute (WRI) and the 2 Degrees Investing Initiative. UNEP FI’s involvement in the initiative is overseen by its CCAG.