FutureTracker has formed a strategic partnership with Zfolio with a view to enhance financed emissions reporting for financial services businesses.
The collaboration between FutureTracker and Zfolio aims to empower financial services companies, particularly fund companies, to meet the growing regulatory and market demands for climate-related disclosures.
With increasing pressure on financial organisations to commit to net-zero targets and transparently report their progress, understanding and managing financed emissions has become a critical component of their sustainability strategy. The new partnership provides financial institutions with the tools they need to accurately measure, track, and reduce their portfolio emissions.
FutureTracker managing director Fred Betley (pictured) said: “Many financial organisations are now required to disclose their financed emissions across various asset classes, driven by emerging regulations and the need for greater transparency.”
In the UK, the government has implemented mandatory climate disclosures for the largest companies, including financial institutions, which align with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). These regulations require companies to assess and report on how climate change impacts their business model and strategy. Additionally, the European Union’s Corporate Sustainability Reporting Directive (CSRD) and Sustainable Finance Disclosure Regulation (SFDR) require extensive reporting on ESG factors, including financed emissions, starting from 2024.
Peter Howard, a Zfolio founder, said: “Measuring and managing the emissions generated by investments and lending is a complex process but growing in importance, both to meet stakeholder expectations and also to comply with international reporting regulations.”
