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Indian Overseas Bank (IOB) Joins Partnership for Carbon Accounting Financials as a Signatory.

Banking & Finance | Dated: 06 Feb 2025

Chennai (Tamil Nadu, TN)-based Indian Overseas Bank (IOB), one of India's leading Public Sector Banks (PSBs), has recently become a signatory of the Partnership for Carbon Accounting Financials (PCAF).With this move, IOB has joined the ranks of early adopters in the Indian banking sector, reaffirming its commitment to combating climate change and promoting responsible banking practices.

🎯 Key Highlights:

  • - As a PCAF signatory, IOB will measure and disclose the Greenhouse Gas (GHG) emissions associated with its financed activities. The bank will adopt globally harmonized methodologies for GHG accounting, aligning itself with international best practices in the financial industry.
  • - This initiative strengthens IOB’s commitment to Environmental, Social, and Governance (ESG) principles and enhances its responsible banking strategies.

💡 Other Important Facts:

  • (i) PCAF is a global initiative established in 2015 by 14 Dutch financial institutions (FIs) under the leadership of The Hague (Netherlands)-based ASN Bank and was launched globally in 2019. As of January 2025, more than 550 financial institutions (FIs) have joined the PCAF initiative.
  • (ii) PCAF provides a standardized framework for financial institutions to measure and disclose GHG emissions from their lending and investment portfolios, helping them assess climate risks and align with global climate targets.
  • (iii) Mumbai (Maharashtra)-based Union Bank of India (UBI) was the first major Indian bank to sign the PCAF framework in September 2016. Later, New Delhi (Delhi)-based Punjab National Bank (PNB) joined this initiative in November 2024.

📚 Test Your Knowledge:

Which Indian Public Sector Bank (PSB) has recently become a signatory of the Partnership for Carbon Accounting Financials (PCAF)?

Correct Answer: Indian Overseas Bank

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