The service combines the solution that analyze financed emissions and the consulting services that help financial institutions develop and achieve net-zero portfolios.

To achieve a sustainable society, the financial industry has taken various initiatives such as measuring financed emissions and establishing decarbonization goals. For instance, the Net Zero Banking Alliance, established in April 2021, commits to reaching net-zero carbon emissions by 2050. Also, the Task Force on Climate-Related Financial Disclosures (TCFD), of which many Japanese financial institutions are members, recommends climate-related financial disclosures, including governance, strategy, risk management, and metrics and targets.

Using NRI’s new service allows financial institutions to adopt a standardized calculation method for financed emissions and formulate the strategy to achieve a net-zero portfolio.

Financed Emissions Analysis Solution
• Organizes financed emissions estimate data, using NRI’s expertise in analyzing non-financial data and cleansing data (will be available from April 2022)
• Provides standard calculation method, considering Partnership for Carbon Accounting Financials (PCAF) and other updates (available from April 2022)
• Provides a decarbonization pathway and technology roadmap based on NRI’s experience in consulting for public and private sector (available in 2022)

The Consulting Service
• Support measurement and emissions analysis across the supply chain of the bank’s financing clients
• Support establishment of a decarbonization policy and goals
• Support reporting to industry organizations such as CDP and TCFD

NRI has been providing the consulting service to Hokuhoku Financial Group’s The Hokuriku Bank, Ltd. And The Hokkaido Bank, Ltd. since December 2021. NRI is currently conducting a proof-of-concept on the solution, and we plan to make the solution available for all our clients from April 2022.