The Korea Credit Information Corporation (KCIC) will become the first organization in the Asia-Pacific region to join the International Financial Emissions Group. This participation aims to enhance the domestic financial sector's greenhouse gas emissions accounting system in line with international standards and support climate disclosure efforts.
On November 12, KCIC announced its involvement in the Engagement Group of the Partnership for Carbon Accounting Financials (PCAF), which develops and disseminates global financial emissions accounting standards.
PCAF is an international consortium that establishes consistent standards for calculating and disclosing greenhouse gas emissions associated with financial activities such as lending and investment. Founded in 2015, it currently includes 798 financial institutions worldwide, with total financial assets amounting to approximately $99.2 trillion. In South Korea, 23 financial institutions, including KB, Shinhan, Hana, Woori, and NH Nonghyup Financial, are also members.
The Engagement Group, which KCIC is joining, is a separate consortium where central banks and financial supervisory authorities discuss standards and trends related to financial emissions accounting and disclosure. Established in June of last year, it currently includes participants such as the European Financial Reporting Advisory Group (EFRAG), the Office of the Superintendent of Financial Institutions (OSFI) in Canada, and the Qatar Financial Centre Regulatory Authority (QFCRA).
Through this participation, KCIC plans to engage in discussions on revising PCAF's financial emissions accounting standards and incorporate the latest methodologies into the domestic financial emissions platform. The financial emissions platform, which has been in pilot operation since March, serves as a shared infrastructure to support financial institutions in calculating and managing their greenhouse gas emissions.
Additionally, participation in the consortium will provide access to PCAF's emissions factor database and training and technical support programs. This will enhance the credibility of financial emissions calculations for domestic financial companies and strengthen their capacity to manage climate risks.
Yoo Su-young, President of KCIC, stated, "This participation will link the domestic financial emissions management system with international discussions and enhance the capabilities of the financial sector in accounting and management. We will work to advance the financial emissions platform and actively support green transition financing."
* This article has been translated by AI.
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