Central Bank of India Joins PCAF to Standardize Carbon Emission Disclosures

Central Bank of India has joined the Partnership for Carbon Accounting Financials (PCAF) to standardise how it measures and discloses greenhouse gas emissions. For fintech and banking professionals, this signals a significant shift in the Indian market toward mandatory climate risk reporting and the integration of environmental data into core lending portfolios.

What was announced

Central Bank of India has officially become a signatory to the Partnership for Carbon Accounting Financials (PCAF). Under this global initiative, the bank will begin measuring and disclosing its Scope 3, Category 15 emissions. These are the emissions specifically linked to the bank's lending and investment activities, rather than its own direct operational footprint. To ensure accuracy and international comparability, the bank will utilise PCAF’s standardised methodology for its reporting.

The implementation of this framework is designed to achieve several strategic objectives: strengthening the bank's internal climate risk assessment processes, providing greater transparency regarding its portfolio's environmental impact, and offering better support to customers as they navigate the transition to a low-carbon economy. This move is particularly timely as the Reserve Bank of India (RBI) has recently proposed new guidelines regarding climate-related financial risk disclosures for the country's banking sector. By adopting the PCAF framework now, the bank aims to build the necessary analytical capabilities and data infrastructure to meet these emerging regulatory requirements while integrating sustainability more deeply into its core financial operations.

"The Central Bank of India envisions a future where banking is synonymous with sustainability, inclusivity, and ethical governance. Becoming a signatory is a testimony to that vision. Measurement and disclosure of emissions associated with financial activities will allow us to better understand climate-related risks within our portfolio and support our customers through the transition to a low-carbon economy."

Shri Kalyan Kumar, MD & CEO, Central Bank of India

The companies involved

Central Bank of India is one of the country’s oldest and most established indigenous commercial banks, having been founded in 1911 by Sir Sorabji Pochkhanawala. Throughout its history, it has maintained a significant presence in the Indian market, operating as a major player with a focus on pioneering financial services for the domestic population. The bank’s decision to join a global framework marks a transition toward modernising its risk management systems in line with international expectations.

The Partnership for Carbon Accounting Financials (PCAF) is a global, industry-led initiative designed to provide financial institutions with a consistent, standardised methodology to measure and disclose the greenhouse gas emissions associated with their loans and investments. By providing a harmonised approach to "financed emissions," PCAF allows banks to move beyond internal operational footprints and address the environmental impact of their entire portfolios. The partnership has become a critical pillar for financial institutions globally as they face increasing scrutiny from regulators and investors regarding their role in the transition to a net-zero economy.

What this means

This move highlights the mounting pressure on traditional banks to treat climate data with the same rigour as credit risk. As the Reserve Bank of India moves toward formalising disclosure requirements, the "wait and see" approach is no longer viable for major lenders. The challenge now lies in data quality; measuring Scope 3 emissions requires granular information from corporate borrowers who may not yet be tracking their own carbon footprints. This creates a massive opportunity for green fintechs and ESG data providers to bridge the gap between bank mandates and borrower reality. The industry is moving rapidly from voluntary branding to mandatory, audited carbon accounting.