Top Banks Create Standard to Report Emissions Linked to Finance

A group of financial institutions including Morgan Stanley, Bank of America Corp. and Citigroup Inc. are introducing a global accounting standard to gauge the climate impact of financial transactions.

The method lets companies measure greenhouse-gas emissions tied to their loans and investments, a key step in advancing climate goals, the Partnership for Carbon Accounting Financials said in a statement Wednesday.

Firms in the past have received limited guidance on how to gauge their impact, Giel Linthorst, executive director of the secretariat of PCAF, said in an interview. The standard, which covers commercial real estate, mortgages and other asset classes, ...