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. As part of a public consultation, input on the draft can be provided until 30 August 2024 (extended period).

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 aim is to measure the portfolio-related greenhouse gas (GHG) emission performance of the investment and lending portfolio and their associated transitory climate risks.

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 finance) 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, 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: The GFA asks for your feedback

The use of I-PEPs is also intended for financial companies outside the GFA. Therefore, national and international stakeholders are invited to participate in a public consultation and submit their expert opinion on the new KPI set. Due to the high level of interest in I-PEPs worldwide and our recently published proposal for I-PEPs extended, the consultation period will be prolonged by two weeks until 30 August 2024. All feedback received will be treated anonymously and evaluated by the GFA Coordinating Office for internal purposes only. Further steps in the process will be taken from there.

You can use the feedback template (Excel document) to send your input and comments via e-mail to gf‑alliance@umweltbundesamt.at by 30 August 2024 latest. Please contact the GFA Coordinating Office if you have any questions about the process or the I-PEPs.

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)
• I-PEPs consultation feedback template (Excel) (Excel, 73 KB)

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