Transition to a Low-Carbon Economy: KeyBank Issues Task Force on Climate-Related Financial Disclosures Report
Citing its commitment as a responsible bank to address climate change, KeyBank has issued its second annual Task Force on Climate-related Financial Disclosure (TCFD) report. The Climate Change Risks & Opportunities Report outlines Key’s commitment to both further reduce its environmental footprint and continue to enable stakeholders in efforts to do the same.
In 2017, Key published the company’s first environmental targets, including reductions to overall greenhouse gas emissions and increases in renewable energy sourcing. Key recognizes that risks and opportunities associated with climate change have grown exponentially and, as a result, have expanded and accelerated its commitments. In 2022, KeyBank published updated environmental targets, including:
- Achieve carbon neutral operations across our scope 1 direct and scope 2 indirect emissions by year-end 2030.
- Finance or facilitate $38B to address climate change and support green initiatives by year-end 2026.
- Join the Partnership for Carbon Accounting Financials (PCAF) and complete the necessary measurement and evaluation of scope 3 financed emissions.
Covering the period from January 1, 2021 to December 31, 2021, the report is informed by TCFD’s recommendations and outlines KeyCorp’s approach to managing climate-related risks and opportunities in the areas of governance, strategy, risk management, and metrics and targets.
As highlighted in its TCFD report, Key has:
- Formed a Climate Oversight Council (COC), a temporary advisory body to oversee Key’s climate risk framework buildout
- Continued to see the positive environmental impacts of multiyear efforts to optimize operations and have already reduced their greenhouse gas (GHG) emissions by 31% and energy consumption by 23% compared to a 2016 baseline.
- Deployed $6.2 billion to support the transition to a low-carbon economy.
- Continued to invest in its renewable investment banking team, doubling in size while enhancing its advisory and capital markets capabilities.
- Ranked as the number 2 North American renewable energy project finance lender in terms of both the number and dollar volume of deals executed, in 2021.
- Joined the Partnership for Carbon Accounting Financials (PCAF) to complete the necessary measurement and evaluation of scope 3 financed emissions.
- Welcomed its first Head of Climate Risk in June 2022 to lead the evolution of the climate risk management framework and who has more than 20 years of risk management experience and 8 years of financing climate change activities globally.
- Invested in new resources to capture and share robust, decision-useful data and further expand our disclosures.