FIRST CAPITAL

First Capital becomes first in Sri Lanka’s Capital Markets to join the partnership for Carbon Accounting Financials (PCAF)

First Capital Holdings PLC, a subsidiary of JXG (Janashakthi Group) and a pioneering full-service investment institution, announced its official membership in the Partnership for Carbon Accounting Financials (PCAF), becoming the first capital markets institution in Sri Lanka to join this global initiative. This marks a significant step in First Capital’s sustainability journey, further deepening its commitment to Environmental, Social and Governance (ESG) principles and aligning its operations with global climate goals.

PCAF is an international collaboration of over 600 financial institutions worldwide, working to develop and implement a standardized framework to measure and disclose the greenhouse gas (GHG) emissions associated with financial activities. Through this membership, First Capital adopts the PCAF framework for measuring financed emissions.

“At First Capital, sustainability is not a peripheral agenda. It is at the heart of everything we do,” said Dilshan Wirasekara, Managing Director and CEO of First Capital Holdings PLC. “Becoming a PCAF signatory is a natural evolution of our commitment to responsible investing and climate action. We are proud to lead the capital market industry in Sri Lanka by joining this global movement and setting a precedent for aligning financial portfolios with climate science.”

With this initiative, First Capital joins a growing network of financial institutions globally that are empowering the financial system to quantify and manage its climate impact. Financed emissions, those generated by loans, investments, and other financial instruments have emerged as a key focus for regulators and stakeholders due to the financial sector’s indirect, yet significant role in supporting high-emission industries.

Although financial institutions may not be direct emitters, the capital they mobilize has a profound influence on global emissions. Measuring financed emissions under framework such as PCAF is rapidly becoming a regulatory and strategic imperative. SLFRS S2 mirrors international expectations and requires financial institutions to evaluate their role in supporting or mitigating climate change.

For the financial year 2024/25, First Capital reported a total of 309.9 tCO₂e under Scope 1, 2, and 3 emissions, excluding financed emissions. By adopting the PCAF Standard, the firm is now positioned to assess and report its financed emissions as well, providing a comprehensive picture of its climate impact and aligning its disclosures with both local and global expectations.

“Joining PCAF allows us to move beyond operational emissions and look at the broader picture on how the capital we allocate influences climate outcomes,” said Diluni Danushika, Head of Sustainability and Corporate Reporting at First Capital Holdings PLC. “This not only enhances our transparency and ESG credibility but also ensures that our investment strategies support a just and low-carbon transition. As we embrace this next phase, we are committed to embedding climate risk and carbon accountability into the core of our decision-making processes.”

By joining PCAF, First Capital takes an essential step in aligning its portfolio with science-based climate targets and responding to growing stakeholder demand for robust, decision-useful climate disclosures. The move also enhances its ability to identify and manage climate-related financial risks, attract ESG-conscious investors, and signal leadership in a rapidly evolving regulatory landscape.

Founded in 2015, PCAF has emerged as the global leader in financed emissions measurement. First Capital’s membership underscores its strategic foresight and leadership within the region, serving as a catalyst for broader adoption of sustainable finance practices in Sri Lanka’s capital markets.

As ESG considerations continue to shape investor behaviour and regulatory expectations, First Capital’s proactive approach reinforces its long-term commitment to sustainable growth, for its clients, its stakeholders and the planet.