Investment-related GHG emissions – Partnership Carbon Accounting
PCAF outlines a clear methodology for financial institutions to track and
disclose their greenhouse gas emissions.
The Partnership Carbon Accounting Financials (PCAF) have produced specific guidance on calculating emissions associated with a business’s investments.
Part of Scope 3 – Category 15, as defined by the Greenhouse Gas (GHG) Protocol, an investor should account for their share of their investments’ emissions.
Inspired follow the PCAF guidance for all applicable asset classes to quantify a company’s Scope 3 – Category 15 (investment) emissions.
Inspired start by understanding what asset class a company’s investments relate to, for example, mortgages, motor financing, or private equity.
Inspired then works with clients to understand the data available related to each asset class and to develop a data collection and calculation approach.
Inspired will make recommendations to improve the quality and accuracy of the data collection and calculations.
Once received, Inspired’s ESG experts will quantify investment-related emissions and allocate these back to the investor based on an appropriate attribution factor.
Inspired’s Scope 3 emissions inventory service typically takes four months from kick-off to delivery. The first two months comprise of data collection while the latter two months involve the Scope 3 calculations and Carbon Balance Sheet report production.
Inspired will present the investment-related emissions as part of a Carbon Balance Sheet report. The report will include all applicable Scope 1, 2, and 3 emissions, hotspot analysis, and a summary of methodologies used.
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“At Inspired, we focus on solving our clients’ toughest sustainability challenges and publish comprehensive ESG disclosures by managing data comprehensively, offering expert insight and providing advisory services to reduce carbon efficiently.”
Related ESG services
Streamlined Energy and Carbon Reporting (SECR) – Scope 1 and 2 emissions
Inspired’s SECR service calculates a company’s Scope 1 and 2 emissions as per the SECR requirements. Scope 1 and 2 emissions represent a business’s operational emissions footprint and should be calculated alongside Scope 3 emissions.
Scope 3 emissions inventory
Inspired’s ESG experts will calculate a business’s applicable Scope 3 emissions, as per the Greenhouse Gas (GHG) Protocol guidance. Categories 1 to 14 of the GHG Protocol guidance cover non-investment-related emissions and should be calculated alongside investment-related emissions (Category 15).
At Inspired, we’ve been putting a lot of effort into helping businesses to understand ESG and its associated benefits. But, our support doesn’t end there.
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Wherever you are on your ESG journey, we can help. For expert support, contact our ESG specialists today.