Phoenix Group, one of the UK's largest long-term savings and retirement businesses, has become the first UK insurer and the largest insurer to date, to join the Partnership for Carbon Accounting Financials (PCAF).

In a statement today (18 July) Phoenix said joining PCAF will enable it to take a consistent approach to assessing and reporting emissions for its investments.

Phoenix was among the first UK insurers to make a clear commitment to help tackle climate change, pledging to be net-zero in its investment portfolios by 2050, in line with science based targets.

PCAF is a global partnership of financial institutions that work together to develop and implement a harmonised approach for assessing and disclosing the greenhouse gas (GHG) emissions of their loans and investments, and is becoming the market standard approach for measuring these emissions.

PCAF has developed GHG accounting methodologies that can be applied by financial institutions who have exposure to listed equity and corporate bonds, business loans and unlisted equity, project finance, mortgages, commercial real estate and motor vehicle loans. PCAF currently represents financial institutions with total financial assets in lending and investments in excess of $40 trillion dollars. It collaborates with the Net Zero Asset Owner Alliance, The Science Based Targets Initiative (SBTi) and the Paris Aligned Investment Initiative to expand and standardise its accounting approach.

Michael Eakins, chief investment officer, Phoenix Group, said:"We are delighted to have become the first UK insurer to join PCAF as we continue to make headway towards our 2050 net zero commitment for our investment portfolio. By committing to PCAF, we are ensuring that we use best market practice when calculating the GHG emissions of our investment portfolio and we call on others within the financial services ecosystem to do the same.

At Phoenix, we understand that to achieve a greener and more sustainable future, it will require collaboration across the financial sector and we stand ready to play our part in helping to achieve this."

Giel Linthorst, executive director of PCAF added: "We are pleased to welcome Phoenix Group to the 120+ financial institutions globally that participate in PCAF. Phoenix Group's addition to the growing number of insurers participating in PCAF highlights the diversity of financial institutions committing to measure and disclose their financed emissions using the PCAF Standard."