Machhapuchchhre Bank Joins PCAF: A Leap Towards Responsible Green Banking
Machhapuchchhre Bank PCAF Partnership
12th December 2025, Kathmandu
Machhapuchchhre Bank PCAF Partnership has been formally announced, marking a significant step for the institution towards enhanced climate accountability.
Machhapuchchhre Bank PCAF Partnership
Machhapuchchhre Bank Limited (MBL) officially joined the Partnership for Carbon Accounting Financials (PCAF), a globally active organization focused on the measurement, assessment, and reduction of greenhouse gas (GHG) emissions.
By participating in PCAF, which works to develop a unified global standard for measuring carbon emissions generated through financial institutions’ investment and loan portfolios, the Bank has significantly strengthened its climate responsibility commitment.
Enhancing Climate Responsibility in Finance
The global financial sector is facing increasing pressure to address its environmental footprint. MBL’s decision to join this global initiative demonstrates a proactive approach to managing environmental, social, and governance (ESG) factors.
The partnership with PCAF provides a standardized methodology for the Bank to accurately quantify the carbon impact of its financed activities. This is crucial for developing robust, data-driven climate strategies.
The Global Movement: PCAF’s Reach
PCAF currently boasts over 600 financial institutions from various countries worldwide as members. This vast network utilizes globally recognized standards for measuring and reporting carbon emissions.
The use of these consistent standards allows financial institutions like Machhapuchchhre Bank to build more reliable and comparable climate strategies. Transparency in carbon accounting is becoming a cornerstone of modern, responsible finance.
Key Fact: Over 600 financial institutions globally are now affiliated with PCAF, employing a unified standard for GHG accounting in the financial sector.
Focusing on Emission Management
Acknowledging the growing global concern regarding environmental impacts, Machhapuchchhre Bank has pledged to focus its efforts on identifying and actively managing the emissions resulting from its core financial activities.
The Bank’s commitment extends beyond mere compliance; it aims to integrate environmental responsibility deeply into its long-term corporate strategy, accelerating its efforts immediately following the Machhapuchchhre Bank PCAF Partnership announcement.
The Bank recognizes that without reliable data on carbon emissions, effective risk analysis and mitigation strategies are impossible. Joining PCAF is a foundational step to acquire this crucial data.
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Strategic Implementation for a Greener Future
Based on the credible data acquired through the PCAF framework, the Bank plans to undertake several strategic actions:
Climate Risk Analysis: The Bank will utilize reliable carbon emission statistics to conduct more accurate climate risk analyses across its portfolio. This proactive risk management enhances the Bank’s resilience.
Investment Promotion: MBL will actively promote investment in energy-efficient projects. This shift supports the transition to a lower-carbon economy by channeling capital toward sustainable ventures.
Eco-Friendly Banking: Environmentally friendly banking practices will be further enhanced and made more effective. This includes developing green financial products and improving operational efficiency to reduce the Bank’s direct footprint.
Supporting National Low-Carbon Goals
Machhapuchchhre Bank believes this proactive measure will significantly contribute to Nepal’s broader national goals of establishing a low-carbon emission and climate-resilient economy.
As a key player in the Nepali financial sector, the Bank’s adoption of international best practices sets a strong precedent. The Machhapuchchhre Bank PCAF Partnership is not just an institutional decision; it is an action that supports the country’s sustainable development agenda.
This commitment ensures that the financing decisions made by MBL increasingly align with global and national climate objectives. By measuring and subsequently reducing financed emissions, the Bank is positioning itself as a leader in sustainable finance within the region.
This transition is vital as the global community moves towards Net-Zero targets. The bank is actively taking steps to ensure its financial activities benefit both its stakeholders and the planet.
A Commitment to Sustainable Finance
The participation in PCAF underscores MBL’s dedication to sustainable finance. The Bank’s actions demonstrate that robust financial growth and responsible environmental stewardship can, and must, coexist.
This move strengthens its position as an institution that is actively aware of its environmental impact and prepared to manage it effectively. Future reports on the Bank’s financed emissions will provide crucial transparency and accountability to the public and regulatory bodies.
The Machhapuchchhre Bank PCAF Partnership highlights a clear commitment to leveraging data and global standards for actionable climate change mitigation, solidifying its role in promoting green economic development in Nepal.
For more: Machhapuchchhre Bank PCAF Partnership
