KLP, Norway’s biggest occupational pension fund, announced it has now joined the Partnership for Carbon Accounting Financials (PCAF), saying that working together with other investors was crucial to have a real impact on climate change.

Municipal pensions provider KLP, which manages around N0K900bn (€86.5bn), said joining the PCAF – an industry-led partnership to standardise carbon accounting for the financial sector – was an important step towards reaching net-zero emissions for its entire investment portfolio.

Heidi Finskas, vice-president of sustainability at Oslo-based KLP, said: “The collaborative force that investors with a net-zero target and PCAF now represent is key to achieving climate emission transparency, improved methods and standardisation in the financial sector.”

That, in turn, was key for the financial sector to have real impact on climate change on a large scale, she said.

The PCAF was spearheaded by Dutch institutions then launched internationally in September 2019, and more than 270 financial institutions have subscribed to it.

The aim is jointly to develop the Global GHG Accounting and Reporting Standard for the financial sector to measure and disclose the emissions of loans and investments.

KLP said it had already implemented an “ambitious sustainability strategy” and a Paris-aligned roadmap to net-zero emissions for its whole investment portfolio.

It said that central principles to the roadmap were transparency about methodology and data, including all asset classes, and continuous adaptation to the best data and methods available.

The pension fund said joining PCAF gave it access to vital high-quality climate data, and Finskas said the methods the partnership was developing were fully aligned with KLP’s way of thinking.

Last week, KLP announced a number of new hires related to sustainability within the organisation, three of whom were starting work in newly-created roles.

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