Strategic Focus: How PCAF Is Driving An Evolution In Carbon Data Management

Published 9 February 2023 by Connor Taylor & Ryan Skinner &
Carbon Emissions Reporting Carbon Management Software Climate Change Strategy Financed Emissions GHG Emissions Monitoring Net Zero & Climate Risk Net Zero Emissions TCFD Reporting Strategic Focus

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Executive Summary

Financial institutions play a pivotal role in driving decarbonization across global economies. To understand and report on carbon impact, the Partnership for Carbon Accounting Financials (PCAF) was created in 2015, providing a bedrock methodology for the accounting of financed emissions. This report gives an overview of how the growing adoption of PCAF has forced an evolution in the way in which emissions data are managed and disclosed. Executives should leverage this report to futureproof their data management and disclosure strategies.

Table of contents

Financial Institutions Created PCAF To Bring Clarity To Emissions Reporting
PCAF Reveals Financial Institutions’ Actual Emissions Performance
PCAF Also Exposes Problems In Actual Emissions Data
Financial Institutions’ PCAF Adoption Drives Innovation In Carbon Data Management
An Emissions Data Chain Will Improve Net Zero Progress And Reporting
How Financial Institutions Should Support An Emissions Data Chain
How Issuers Should Prepare For An Emissions Data Chain

Table of figures

Figure 1. The Carbon Data Reporting Landscape For Financial Institutions
Figure 2. XBRL Tagging Of Emissions Data
Figure 3. An Emissions Data Chain

Organisations mentioned

2° Investing Initiative (2DII), ABN AMRO, ACA Group, CDP, Citi, Ethos ESG, Etsy, FigBytes, Gap Inc., GHG Protocol, GHGSat, Global Reporting Initiative (GRI), Massachusetts Institute of Technology (MIT), MethaneSAT, Moody’s, NatWest Group, Partnership for Carbon Accounting Financials (PCAF), Persefoni, Santander, Science Based Targets initiative (SBTi), SINAI Technologies, Sphera, Sustainability Accounting Standards Board (SASB), Sweep, Task Force on Climate-related Financial Disclosures (TCFD), TD Bank, US Securities and Exchange Commission (SEC), Workiva

About the authors

Connor Taylor

Senior Analyst
Connor is a Senior Analyst in the Verdantix Net Zero & Climate Risk practice. His current research agenda focuses on carbon management software, climate change consulting services, and the voluntary carbon markets. Connor joined Verdantix in 2021, with prior experience in EHS technology sales and development. He holds a BA from the University of Cambridge in Anglo-Saxon, Norse and Celtic.

Ryan Skinner

Research Director, Net Zero & Climate Risk
Ryan is the Research Director for the Verdantix Net Zero & Climate Risk practice. He guides the research team to develop compelling research at the intersection of net zero strategies, carbon management, climate risk and technology. Prior to joining Verdantix, Ryan was a principal analyst at Forrester Research, where he initiated the research into ESG data and analytics offerings. He also has extensive experience of helping software companies with their messaging, positioning, market and technology strategies. Ryan studied at Duke University, the University of Manchester and the University of Oslo, and speaks Norwegian fluently.

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