The Dutch Banking Association, the Association of Insurers, the Dutch Fund and Asset Management Association, and the Pension Federation have published updated guidance for signatories of the Climate Commitment.

The guidance was initially published in 2022 and aims to provide clarity and explanation about which elements belong in a climate action plan, and to explain the measurement of the CO2 content of loans and investment.

Each year, the guidance is adjusted following feedback from stakeholders and taking into account international initiatives.

The main changes in the updated guidance include that investment organisations will from now on also include the CO2 content of government bonds in their reports.

Secondly, from the 2023 financial year, institutions will have to report on scope 3 emissions, as well as scope 1 and 2, or explain why this is not possible or desirable.

The guidance has also been updated to state that, when reporting the CO2 emission content and presenting reduction targets, institutions must indicate the influence of carbon offsets and carbon credits on their financed emissions and reduction targets.

“In addition to international net-zero standards for investors, there is also increasing European legislation and regulation in the field of climate reporting and action plans,” the Pension Federation noted.

“Examples of European legislation and regulations that may be relevant to investors in this area are the Sustainable Finance Disclosure Regulation and the Corporate Sustainability Reporting Directive.

“The four umbrella organisations (the Dutch Banking Association, the Association of Insurers, the Pension Federation and the Dutch Fund and Asset Management Association) adjust the guideline annually. This second version of the guideline applies to the reporting of the CO2 content of loans and investments for the year 2023.”

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