"Measuring our financed emissions using the PCAF methodology gives us a better understanding of our current mortgage portfolio."
The lender, which is celebrating its 40-year anniversary this year, offers a range of ethical savings accounts which fund mortgages for properties and projects supporting individuals and communities to adopt green building practices.
In order to calculate the carbon footprint, or ‘financed emissions’, arising from their lending, Ecology has applied the new Global Greenhouse Gas Accounting and Reporting Standard which was developed by the Partnership for Carbon Accounting Financials (PCAF) and launched in November 2020. Financed emissions arise from the burning of fossil fuels (mainly gas) to heat and power mortgaged properties.
The move to calculate the emissions from its sustainable lending is in addition to its long-standing commitment to measure and report the carbon footprint from its day-to-day business operations including the energy used to heat its offices, purchasing supplies as well as commuting and travel. Ecology offsets these operational emissions through accredited tree planting schemes.
Ecology is also co-chairing the Residential Property working group which is developing and sharing best practice on measuring emissions from mortgaged properties with a view to improving the methodology. The group plans to launch a report at COP26, building momentum for more banking providers to transparently measure and disclose their emissions.
Alison Vipond, Ecology’s sustainability lead, commented: “To achieve net-zero we need to unlock the financial solutions required to transition to a low carbon economy.
“Measuring our financed emissions using the PCAF methodology gives us a better understanding of our current mortgage portfolio. We are using this to help develop our net zero plan, especially to target and improve energy inefficient properties.
“We’re looking forward to sharing our experience with other banking providers at COP26 so that they can join us and use the carbon accounting approach to focus on building a sustainable future.”
