Fifth Third today announces that it has joined the Partnership for Carbon Accounting Financials (PCAF), the latest in a series of steps taken by Fifth Third to understand and measure its own climate impact. Earlier this year, Fifth Third announced that it achieved carbon neutrality for its operations under Scope 1, Scope 2 and business travel under Scope 3 emissions.
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Jamie Leonard, chief financial officer, Fifth Third Bank (Photo: Business Wire)
PCAF is an industry-led partnership of over 110 financial institutions world-wide that work together to develop and implement a consistent and transparent standard for financial institutions to assess and disclose client greenhouse gas (GHG) emissions associated with loans and investments.
"We understand that our impact to the environment isn't just what we do with our own operations, but also includes what we finance," said Jamie Leonard, executive vice president and chief financial officer, Fifth Third Bancorp. "We are excited to take this important step by committing to measure certain client emissions through a common GHG accounting standard."
Launched globally in 2019, PCAF is a global partnership to standardize GHG accounting for the financial sector, enabling a harmonized approach to the assessment and disclosure of financed greenhouse gas emissions. Beyond assessing, tracking and reporting financed emissions, a consistent approach to portfolio GHG accounting gives financial institutions the information required to inform actions and strategy, set climate targets, assess climate transition risks and disclose progress. As such, the approach feeds into the work of other climate initiatives, such as the CDP and the Task Force on Climate-related Financial Disclosures (TCFD) framework.
"PCAF is pleased that Fifth Third Bank has joined over 110 financial institutions globally that are committed to measuring and disclosing the emissions of their portfolios to support meeting the goals of the Paris Climate Agreement," said Nicole Labutong, PCAF North America Lead. "Fifth Third's drive to keep measuring and reducing its emissions across all scopes will make it a valuable collaborator in PCAF."
Fifth Third became the first regional commercial bank in the U.S. to achieve operational carbon neutrality in 2020. Also that year, it announced a five-year $8 billion sustainable finance goal. Fifth Third continues to make significant progress on its five bold sustainability goals announced in 2017, including having already achieved its goal for 100% renewable power, a 20% reduction in water usage and a 25% reduction in greenhouse gas emissions. In addition to these goals, Fifth Third has maintained its A- Climate Leadership Score from CDP in 2020 and established a national renewable energy finance center of excellence in 2018. Fifth Third aligns its work in environmental sustainability to the United Nations Sustainable Finance Goal No. 13 Climate Action. More information is available in Fifth Third's 2019 ESG Report. Fifth Third expects to publish its 2020 ESG Report in mid-2021.
Fifth Third's achievement of carbon neutrality is pending third-party verification. For additional environmental disclosures, including the Bank's CDP questionnaire responses, environmental data tables, sustainable finance goal methodology and independent verification and assurance reports, visit the additional disclosures page of Fifth Third's ESG site.
About Fifth Third
Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio and the indirect parent company of Fifth Third Bank, National Association, a federally chartered institution. As of Dec. 31, 2020, Fifth Third had $205 billion in assets and operated 1,134 full-service banking centers and 2,397 ATMs with Fifth Third branding in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia, North Carolina and South Carolina. In total, Fifth Third provides its customers with access to approximately 52,000 fee-free ATMs across the United States. Fifth Third operates four main businesses: Commercial Banking, Branch Banking, Consumer Lending and Wealth & Asset Management. Fifth Third is among the largest money managers in the Midwest and, as of Dec. 31, 2020, had $434 billion in assets under care, of which it managed $54 billion for individuals, corporations and not-for-profit organizations through its Trust and Registered Investment Advisory businesses. Investor information and press releases can be viewed at www.53.com. Fifth Third's common stock is traded on the Nasdaq® Global Select Market under the symbol "FITB." Fifth Third Bank was established in 1858. Deposit and Credit products are offered by Fifth Third Bank, National Association. Member FDIC.
Partnership for Carbon Accounting Financials
The Partnership for Carbon Accounting Financials (PCAF) was launched globally in September 2019. Currently, more than 110 banks and investors have subscribed to the PCAF initiative. PCAF participants work together to jointly develop the Global GHG Accounting and Reporting Standard for the Financial Industry to measure and disclose the greenhouse emissions of their loans and investments. By doing so, PCAF participants take the first step required to assess climate-related risks, set targets in line with the Paris Climate Agreement and develop effective strategies to decarbonize our society. For more information see https://carbonaccountingfinancials.com/
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