LB Finance PLC joins PCAF to strengthen climate action in financial sector

Wednesday, 1 October 2025 00:02 - - {{hitsCtrl.values.hits}}

LB Finance PLC has taken a landmark step in its sustainability journey by becoming a signatory of the Partnership for Carbon Accounting Financials (PCAF), a global initiative that enables financial institutions to measure and disclose greenhouse gas (GHG) emissions linked to their lending and investment portfolios.

This milestone adds to LB Finance’s proud history of climate leadership. In 2013/14, the company became Sri Lanka’s first carbon conscious finance company, followed by another industry-first in 2015/16, when it was certified as the first carbon neutral company in Sri Lanka. Over the past few years, the company has steadily advanced its sustainability reporting, integrating GHG accounting into its disclosures.

In the financial year 2024/25, LB Finance made history in the local financial sector by publishing the financed emissions from its motor vehicle loan portfolio, calculated using the PCAF methodology and it was independently verified by Control Union Sri Lanka, ensuring credibility and transparency. The assessment confirmed a total carbon footprint of 36,934.07 tCO₂e for 2024/25, with 27,245.12 tCO₂e attributable to financed emissions from motor vehicle loans. Notably, this was achieved even before LB Finance became an official member of PCAF, reflecting its forward-thinking approach.

This year also marked another milestone, as LB Finance became the first financial institution in Sri Lanka to commit to the Science Based Targets initiative (SBTi) near-term and net-zero targets, aligning its strategy with the 1.5°C global warming pathway.

By joining PCAF, LB Finance gains access to a collaborative global platform of over 600 financial institutions worldwide, working together to standardise and enhance financed emissions accounting. This membership will allow LB Finance to deepen its GHG reporting, benchmark against global best practices, and accelerate its path towards meeting its ambitious climate goals.

LB Finance Managing Director Niroshan Udage said: “Our membership in PCAF marks a new chapter in LB Finance’s sustainability journey. Strengthening our GHG accounting practices is essential to aligning our financing activities with Sri Lanka’s climate commitments and the global transition to a low-carbon economy.”

PCAF APAC Coordinator Srinagesh Mavilati said: “We are excited for LB Finance to be part of the signatory community, and we are looking forward to continuing to collaborate with LB Finance on driving the standardisation of portfolio emissions accounting in Sri Lanka.”