IOB becomes signatory of Partnership for Carbon Accounting Financials

CHENNAI: Indian Overseas Bank (IOB) has become a signatory of the Partnership for Carbon Accounting Financials (PCAF).

As part of this initiative, the bank will measure and disclose the greenhouse gas (GHG) emissions associated with its financed activities and adopt globally harmonized methodologies for GHG accounting, aligning with international best practices in the financial industry.

It will strengthen its role in India's net-zero journey. With this step, the public sector bank has become one of the early adopters in the Indian banking sector to join this global initiative to combat climate change and promote responsible banking, IOB said in a statement on Tuesday.

PCAF is a globally recognised collaboration of financial institutions working together to harmonize the measurement and disclosure of greenhouse gas emissions associated with loans and investments, it added.

Ajay Kumar Srivastava, MD & CEO of IOB, said, "This milestone aligns with our vision to integrate sustainability into our core operations and support India journey towards a greener and more resilient economy.”

This initiative further strengthens the bank commitment to ESG (Environmental, Social, and Governance) principles and responsible banking practices, the statement further said.