Consultation  New KPI set for decarbonisation steering

With the I-PEPs, the Green Finance Alliance has developed a new KPI set to steer the decarbonisation of financial companies. The public consultation on the draft ran until 30 August 2024.

The Green Finance Alliance (GFA) presents a new KPI-set for financial companies under the term I-PEPs. The abbreviation stands for "Indicators for Portfolio-weighted Emission Performances". The primary aim is to measure the portfolio-related greenhouse gas (GHG) emission performance of the investment and lending portfolio.

How does the I-PEPs KPI set work?

I-PEPs use the absolute GHG emissions (for corporate lending/investments) or physical emission intensities (for project financing) of portfolio assets and measure their development over time. The asset-specific performances are then weighted and aggregated according to the respective size of the investment/loan volume in the portfolio. With I-PEPs extended (see box), the relative significance of the portfolio constituents’ emissions can also be taken into account in the weighting by integrating a second weighting element, thus covering more use cases.  

The advantage: I-PEPs require fewer input parameters and are therefore more robust against unwanted influencing factors (such as EVIC) that would otherwise affect the emissions performance. The reduced need for data collection may also lower staff-related and financial costs, thus freeing up resources for portfolio steering.

Please find further information on the background and functioning of I-PEPs in the consultation documents below.

Consultation: next steps

The draft set of KPIs has been open to public consultation for eight weeks. The feedback received by the GFA Coordinating Office is now being evaluated for internal purposes on a confidential basis. Based on the evaluation results the next steps relating to the methodological development and the portfolio activities covered will be decided.

You want to stay up to date with I-PEPs KPI set? Then join the GFAs Observer Group or sign up for the BMK Green Finance Newsletter. These channels are used to send out the latest news (in german) on the initiative in general and on the KPI set.

Consultation documents

• Consultation draft: Proposal for a new KPI-set to steer the decarbonisation of financial companies, version 1.1 (PDF, 1 MB)
• I-PEPs presentation, version 1.1 (PDF, 1 MB)
• Calculation Excel (basis for carrying out your own calculations and simulations based on the I-PEPs methodology) (Excel, 287 KB)

German versions of all consultation documents are available here: Overview of consultation documents for I-PEPS