Financed Emissions
Financed emissions are the greenhouse gas emissions associated with the lending and investment activities of financial institutions, attributed proportionally based on ownership or financing share.
What is Financed Emissions?
Financed emissions represent the indirect climate impact of financial institutions through their lending, investment, and underwriting activities. They are reported under Scope 3 Category 15 (Investments) and are typically the dominant emission source for banks, asset managers, and insurers — often 100–1,000x larger than operational Scope 1 and 2 emissions. PCAF provides the standard methodology for calculating financed emissions across different asset classes.
Practical Examples
A bank calculates its financed emissions at 15 million tCO₂e across its lending portfolio, compared to just 50,000 tCO₂e from its own operations.
An asset manager tracks the weighted average carbon intensity of its equity portfolio, reporting a 12% year-on-year improvement through active portfolio management.
How Climatise Helps
Climatise provides corporate emissions data that supports financial institutions in calculating financed emissions for their portfolios.
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