European sustainability reporting adviser EFRAG has joined the Partnership for Carbon Accounting Financials (PCAF) Engagement Group for Central Banks and Financial Regulators, aiming to enhance alignment between greenhouse gas accounting methodologies and corporate reporting frameworks.
The PCAF Engagement Group operates as a collaborative platform for central banks, financial regulators, and standard-setting bodies. The forum facilitates technical dialogue and knowledge sharing to support the consistent implementation of accounting standards for emissions associated with financial activities, such as loans and investments.
As technical adviser to the European Commission, EFRAG oversees the development of the European Sustainability Reporting Standards (ESRS) under the Corporate Sustainability Reporting Directive (CSRD). Joining the PCAF group is intended to strengthen linkages between carbon accounting practices and broader European disclosure requirements, improving data transparency, comparability, and decision-usefulness across financial markets.
Chiara Del Prete, Chair of the EFRAG Sustainability Reporting Technical Expert Group, highlighted that cross-sector collaboration between regulators, standard setters, and market participants is essential to ensure consistency between corporate sustainability disclosures and financed emissions accounting.
Angelica Afanador, Executive Director of PCAF, welcomed EFRAG’s inclusion, noting that technical alignment between standard-setting bodies and carbon accounting practitioners becomes increasingly critical as financial institutions face expanding regulatory reporting obligations across the sustainable finance ecosystem.
