Strategic Focus: Strategies For Measuring Financed Emissions
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Executive Summary
Financial institutions’ financed emissions (Category 15 under the GHG Protocol) are 700 times larger than their direct emissions; it is therefore paramount that they accurately measure and report these. Institutions struggle to do so, however, due to the complexity of value chains, poor-quality data and complications surrounding calculation methodologies. Sustainability leaders should read this report to understand best practices – such as mapping emissions to sectors and setting sector-specific targets, identifying incentives based on financing relationships, and adapting calculation methodologies to suit firms’ specific needs.
Table of contents
Accurate measurement of financial institutions’ investee emissions underpins global climate actionIssues with data collection and inaccuracies plague financed emissions reporting
Best practices in measuring financed emissions
Table of figures
Figure 1. Financed emissions calculation methodologyFigure 2. PCAF data quality scores hierarchy
Figure 3. Core portfolio-level metrics for reporting Category 15 emissions
Organisations mentioned
AB InBev, Barclays, Copenhagen Business School, Cority, Danske Bank, Deutsche Bank, European Central Bank (ECB), GHG Protocol, HSBC, ING, JPMorgan Chase & Co., Nordea, Oxford Sustainable Finance Group, Partnership for Carbon Accounting Financials (PCAF), Persefoni, Sphera, Sweep, Watershed, Wells FargoAbout the authors
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