PCAF-DETAIL

PCAF financed emissions standard 500 FIs $90T.

Definition

PCAF Global GHG Accounting and Reporting Standard 3 parts: (1) Part A (2020) Financed Emissions: methodologies 6 asset classes (Listed equity + corporate bonds, Business loans + unlisted equity, Project finance, Commercial real estate, Mortgages, Motor vehicle loans), Attribution Factor (FI's ownership share % * investee company emissions = financed emissions). (2) Part B (2022) Capital Markets Emissions: methodologies underwriting (debt + equity issuances), Facilitated Emissions concept (FI underwriter facilitates capital flow vs direct ownership). (3) Part C (2023) Insurance-Associated Emissions: methodologies insurance underwriting (premium-weighted emissions attribution). Data Quality Score 1-5: Score 1 (highest, audited data direct from investee company), Score 2 (unaudited data), Score 3 (averaged data by sector + size), Score 4 (regional + sector averages), Score 5 (lowest, economic activity intensity factors). Mandatory disclosure GFANZ Glasgow Financial Alliance for Net Zero alignment, ECB ESMA EBA supervisory expectations EU banks 2025+. ~500 FIs signatory 2024.

Origin

PCAF founded 2015 by ABN AMRO + Rabobank + 12 Dutch FIs ; PCAF Global expansion 2018+ ; Part A standard published November 2020 ; Part B 2022 ; Part C 2023 ; ~500 FIs 2024.

Example in context

JPMorgan Chase publishes annual PCAF financed emissions report: ~$1.5T loan + investment portfolio analyzed per PCAF Part A methodologies, carbon-intensive sectors (oil + gas, power, automotive) detailed calculations, science-based 2030 targets emissions intensity reduction vs base year 2019.

Related terms

• SBTi Pathway — target-setting framework.