The Joint Impact Model Foundation, in partnership with leading development financial institutions, multilateral development banks, standards setters and modelling experts, is gearing up to deliver on its mission of contributing to impact reporting harmonization for the financial sector in emerging economies
[Sharm el-Sheikh, 11 November 2022] — The Joint Impact Model (JIM) Foundation, via the JIM-PCAF program, will provide technical assistance to 25 financial institutions in 2023, with the ambition of reaching a tipping point of 500 FIs in developing countries by 2030.
The milestone announcement was made today by Alex MacGillivray, JIM Foundation Co-Chair, during the COP27 in Egypt.
The JIM is a web-based tool which enables banks to quantify their financed emissions (known as Scope 3 category 15). The results align with the Global Standard for GHG accounting and reporting developed by the Partnership for Carbon Accounting Financials (PCAF). As of November 2022, 330 FIs have committed to carbon accounting by joining PCAF.
With the support of British International Investment (BII), DEG – the German Development Finance Institution, FinDev Canada (supported by Global Affairs Canada), the Dutch development bank (FMO), and Proparco – the French Development Finance Institution, technical assistance will be accessed by 25 commercial banks across emerging economies where lack of data and resources makes carbon accounting more challenging.
To jumpstart carbon accounting and impact reporting in the banking sector in many more countries, participating banks will receive:
Access to the online tool
Support on compiling a baseline carbon footprint
Engagement on risks, opportunities, scenario planning and target setting
Networking opportunities with other banks and experts to engage and learn from best practices.
By increasing focus on downstream scope 3 emissions and improving the collection of primary data the JIM will be able to refine the model further. Final learnings from the JIM-PCAF program will be made available, as well as the learnings presented at COP27 in Sharm El-Sheikh.
“The JIM has been incredibly helpful for deriving insights about our portfolio. By only entering outstanding amount and economic activity, I can get a detailed breakdown of Scope 1,2, and upstream scope 3 and split by CO2 and non-CO2 in seconds! I am looking forward to its further development so that it can cover 100% of our portfolio aligned with the PCAF standard.” – Wilson Ortiz, E&S Development Specialist at Banco Pichincha
The JIM-PCAF Program will make an important contribution towards demonstrating the value of portfolio emissions accounting for financial institutions with multiple business objectives. It will increase transparency for stakeholders, help to manage climate-related transition risks, provide a starting point for developing climate-friendly financial products and act as a foundation for devising 1.5 degree aligned transition plans towards net zero. We will start with deep knowledge and training for 25 FIs who in turn will help the JIM Foundation onboard 500 FI’s by setting examples and sharing best practices.
About the Joint Impact Model Foundation
Established in May 2022, the JIM Foundation is a non-profit FMO spin off which manages the JIM and creates credible oversight for its development.
Its mission is to provide the means to quantify impact aligned with industry standards, contributing to impact harmonization for the financial sector in emerging economies. Its aim is to create an inclusive, aligned, and actionable financial sector that is geared towards impactful investments in sustainable economic development while decarbonizing portfolios.
Want to know more? Check below or reach out to us at info@jointimpactmodel.org