Strategic Focus: Strategies For Measuring Financed Emissions
Gus Brewer
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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.Issues with data collection and inaccuracies plague financed emissions reporting
Best practices in measuring financed emissions
Figure 2. PCAF data quality scores hierarchy
Figure 3. Core portfolio-level metrics for reporting Category 15 emissions
About the Authors
Gus Brewer
Analyst
Gus is an Analyst in the Verdantix Net Zero & Climate Risk practice. Prior to joining Verdantix, Gus worked at Rio ESG, where he gained experience as a sustainability cons...
Ryan Skinner
Research Director
Ryan is a Research Director at Verdantix, where he leads a team of analysts delivering research, data and advisory services that help clients navigate the fast-evolving landsc...
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