First Bank joins PCAF to support Nigeria’s transition to low-carbon economy

First Bank of Nigeria (FBN) has joined the Partnership for Carbon Accounting Financials (PCAF) initiative to promote sustainable finance, combat climate change and advance sustainable socio-economic development for a just transition.

In a statement on Thursday, First Bank said the initiative aligns with its commitment to sustainable finance and actively reducing its carbon footprint.

“PCAF is a collaboration between financial institutions worldwide to enable harmonised assessments and disclosures of greenhouse gas (GHG) emissions from loans and investments,” FBN said.

“With more than 530 financial institutions from six continents, the group is rapidly expanding in North America, Latin America, Europe, Africa and Asia-Pacific.

“Joining PCAF aligns with FirstBank’s broader climate agenda, reinforcing its efforts to contribute meaningfully to global climate goals.

“By adopting PCAF’s globally recognised standards, FirstBank aims to enhance transparency in carbon accounting and reporting, integrate climate risk into its lending and investment decision-making, and support Nigeria’s transition to a low-carbon economy.

“This initiative complements FirstBank’s ongoing work on environmental, social, and governance (ESG) issues, underscoring its dedication to responsible banking practices.

 “PCAF will provide FirstBank with a standardised methodology and framework to measure and report the Bank’s GHG emissions and climate-related risks.”

‘PCAF WILL HELP FBN BETTER UNDERSTAND, MANAGE EXPOSURE TO CLIMATE RISKS’

First Bank said through PCAF, it will better understand and manage its exposure to climate risks and liabilities, both physical and transitional, allowing it to make informed decisions, proactively address the risks, and leverage growth opportunities.

Dylan Hauser, regional lead For PCAF Africa, welcomed First Bank as a new signatory, expressing enthusiasm for FBN’s dedication to advancing positive change and reducing carbon emissions in the region through accountable practices.

“We are absolutely delighted to have FirstBank on board sharing our commitment to driving positive change and reducing carbon footprints in the region through transparent and accountable practices,” Hauser said.

Patrick Akhidenor, chief risk officer of First Bank, reaffirmed the bank’s commitment to addressing climate change and accountability for financed carbon emissions.

“Joining PCAF is a significant milestone in our sustainability journey. It is not only a demonstration of our commitment to combatting climate change but also a step towards ensuring that we, as a financial institution, are accountable for the carbon emissions our activities finance,” Akhidenor said.

“We are excited to collaborate with other global institutions in driving meaningful climate action.”

First Bank said by partnering with PCAF, it is poised to champion transparency and accountability in the impact of the financial sector’s activities on climate change.