March 4, 2019, (Missoula, MT) – Following the Global Alliance for Banking on Values (GABV) Summit in Vancouver earlier this month, we have committed to a concerted, global effort among banking institutions to track and monitor the carbon impact of our portfolio of loans and investments within a period of three years.
The Climate Change Commitment, otherwise known as the ‘3C initiative’, reflects the dire need to correct our current environmental trajectory and aligns with the Paris Agreement goals to keep global temperature increases this century well below 2 degrees Celsius.
“Values-based banks and financial institutions from right across the world have come together in recognition of the fact that where we allocate our capital matters for our environment,” says Peter Blom, Chair and co-founder of the Global Alliance for Banking on Values. “The Climate Change Commitment is a powerful, practical example of action the banking industry can take to contribute concretely to efforts to address the climate crisis. By assessing and disclosing their greenhouse gas emissions, banks can see their contribution to greenhouse gas emissions. This enables them to make financial decisions that limit the impact of the emissions of their financed assets so they can keep their contribution within safe environmental levels, helping to safeguard the environment for future generations.”
The GABV intends to use the measurement methodology developed by a group of Dutch banks known as the Partnership for Carbon Accounting Financials (PCAF) to calculate the greenhouse gas emissions of their loans and investment portfolios. PCAF covers a number of relevant asset classes, including listed equity, project finance, mortgages, commercial real estate, project finance, and corporate debt.
The initiative is part of the Global Alliance for Banking on Values’ larger commitment to spearhead positive change among the financial industry on pressing social and environmental issues. The participating institutions, who have combined assets of USD 153 billion, intend to influence the wider banking sector by demonstrating that banks can assess and report on their greenhouse gas emissions. By doing so they plan to demonstrate to their stakeholders what their contribution is to keep the global increase in temperature within safe levels.
For more information visit: www.gabv.org
The ‘Climate Change Commitment’ (3C initiative) states that:
The members of the Global Alliance for Banking on Values have pioneered responsible finance proving, on a daily basis, that positive impact can be at the heart of everyday banking. Together they have financed positive social, environmental and cultural change all over the world. Addressing the urgent challenge of climate change, and decarbonizing our economy, is only one part of this work, but it is more urgent now than ever. That is why the GABV’s 3C initiative members have committed to assess and disclose the climate impact of their portfolio of loans and investments within a period of three years, and ultimately to ensure the climate impact of their loans and investments are in line with the Paris Agreement.
The list of participating banks and credit unions who have agreed to the ‘Climate Change Commitment’ in the initial phase include:
- Alternative Bank Schweiz (Switzerland)
- Amalgamated Bank (USA)
- Banca Etica (Italy)
- BancoSol (Bolivia)
- Beneficial State Bank (USA)
- BRAC Bank (Bangladesh)
- Cooperative Abaco (Peru)
- Cooperative Bank of Karditsa Coop.L.L. (Greece)
- Credit Cooperatif (France)
- Ecology Building Society (UK)
- Ekobanken (Sweden)
- ESAF Small Finance bank (India)
- GLS (Germany)
- LAPO Microfinance Bank Limited (Nigeria)
- MagNet (Hungary)
- Merkur (Denmark)
- *Clearwater Credit Union (formally MFCU)(USA)
- NMB Bank (Nepal)
- Opportunity Bank Serbia (Serbia)
- Sunrise Banks (USA)
- Triodos Bank (Europe)
- Vancity (Canada)
- Verity Credit Union (USA)
- Vision Banco (Paraguay)
- VSECU (USA)
- XacBank (Mongolia)
About Clearwater Credit Union
Established in 1956, *Clearwater Credit Union (formally Missoula Federal Credit Union) is a member-owned cooperative that practices values-based banking and aims to be a force for good in banking, in the communities we serve, and in the lives of our members. Guided by our four core values of; Together We Own, Together We Matter, Together We Include, and Together We Empower-*Clearwater focuses on building inclusive economies that both empower people and protect the planet.
About the Global Alliance for Banking on Values
The Global Alliance for Banking on Values (GABV) is a network of more than 50 banking leaders from around the world committed to advancing positive change in the banking sector. Our collective goal is to change the banking system so that it is more transparent, supports economic, social and environmental sustainability, and is composed of a diverse range of banking institutions serving the real economy. The GABV was founded in 2009 creating a network of progressive financial institutions who had already been operating in a sustainable and viable way for many years.
Global Alliance for Banking on Values members are focused on following the principles of values-based banking.
*This press release was updated on September 17, 2019 to reflect MFCU officially changing its name to Clearwater Credit Union.