ISO 14097:2021 Greenhouse Gas Management and related activities

To achieve the goals of the 2015 Paris Agreement and to maintain stability in the financial system, the world needs to transition to a low-carbon and climate-resilient economy. To support this transition, there is a need to undertake a vast reallocation of the investee capital from high-carbon to low-carbon assets, assets with negative emissions and assets that are resilient in the short, medium and long term. Financiers have a key role to play in this transformation because their day-to-day decisions can influence the behavior of “investees” (e.g. companies, clients, borrowers) in the real economy. Such an influence can include capital and research and development expenditure plans, the decision to retire (or not) high-carbon assets, or other aspects of corporate strategies. Similarly, financiers can influence the investment decisions of their clients due to their potentially broad-ranging roles as creditors, financial advisors or asset managers. The day-to-day decisions of financiers can have both positive and negative consequences on the achievement of climate goals.

• Financial and investment managers
• Investment teams not limited to the financial industry
• Any parties interested in Greenhouse Gas Management

Measurable outcome and impact a financier intend to achieve with its climate action with the goal being to maximize the financier’s impact given available market opportunities and demonstrate the organization’s social responsibility and achieve sustainability.

ISO 14097 use verification and validation as the preferred approaches for conformity assessment, BSI use ISO 14097 and ISO 14064-3 as assessment standard.

This standard refers to these financiers as “financiers with climate objectives”. These financiers influence investees through ‘climate actions’ that will lead to a reduction in GHGs or an increase in resilience such as, but not limited to:

— The use of voting rights associated with share ownership;

— The use of influencing power as creditors;

— Setting conditionality associated with lending or security issuance;

— Making preferential financing available for targeted activities that face a financing gap; and

— Conducting policy advocacy.