How to measure emissions from Financed emissions

What counts as Financed emissions

Financed emissions associated with investments and lending, reported as an absolute portfolio emissions figure (tCO2e) in line with PCAF-aligned Scope 3 Category 15 guidance. Relevant to organisations with an investment or lending book - banks, asset managers, insurers and corporates with treasury investments.

Category 15 is the only Scope 3 category expressed directly as a pre-calculated emissions figure rather than a physical or spend quantity, because the 'activity' is the portfolio itself, not a unit multiplied by a factor inside Compare Your Footprint. It sits outside the organisation's operational or supply-chain boundary entirely; do not combine it with operational Scope 1-3 totals without labelling it separately, since most disclosure frameworks expect financed emissions to be reported distinctly from operational emissions.

What activity data you need

Collect the most specific physical unit available. Unit definitions are in Appendix I — Description of Units.

• tCO2e

Which emission scope it falls under

Financed emissions activity data typically maps to Scope 3 Category 15 under the GHG Protocol. Confirm organisational boundary and ownership before reporting.

Sub-types available in the platform

All 1 sub-type available in the platform.

• Portfolio emissions: Absolute

Common questions

Who typically needs to report financed emissions?

Organisations with an investment or lending book - banks, asset managers, insurers, pension funds, and corporates with material treasury investments. It rarely applies to businesses without a financial holdings portfolio.

Why is this reported as tCO2e rather than a physical activity unit?

Because the underlying activity is a financial holding, not a physical quantity like kWh or km. PCAF methodology calculates the emissions figure directly, attributed by ownership share, so the platform records the result rather than a factor input.

How do we attribute emissions from an investee we only partly own?

Use your proportional share of the investee's enterprise value (for equity) or the outstanding loan balance relative to the investee's total debt plus equity (for lending), per PCAF's attribution rules.

What if an investee doesn't disclose its own emissions?

Use a sector-average emissions intensity estimate as a proxy, and flag it as estimated data quality (PCAF's data quality scoring) so you can prioritise engaging that investee for better data over time.

Should financed emissions be added to our total carbon footprint?

Report it as a distinct Category 15 figure rather than blending it into your operational Scope 1-3 total, since most disclosure frameworks and most readers expect financed emissions to be shown separately.