CO2 Emissions PCAF
Calculation of financed emissions
.png)
Climcycle uses the established PCAF standard to calculate financed emissions. This provides a framework for the calculation, allocation and disclosure of financed emissions (Scope 3, Category 15, downstream). The bank's portfolio is currently divided into 7 asset classes and evaluated, with emissions being analysed at transaction and portfolio level. The respective calculation options depend on the quality and availability of the required data and can be selected individually for each transaction.
The PCAF framework is continuously being expanded, particularly with regard to additional asset classes and current data sources. Accordingly, the Climcycle module is continuously adapted and improved.
Input & Output
The data requirements are based on the PCAF framework and include, for example, individual company data, building type, car model or information on the region and sector.
Calculations are performed at transaction level and can be aggregated at portfolio level. The output includes the absolute financed emissions, the CO2e emissions intensity and the quality score.
Methodology
Our PCAF module follows the framework of the PCAF standard and provides different calculation methods depending on the granularity of the available data. The calculation method can be selected individually for each asset/deal depending on data availability.
Coverage
The module covers the following asset classes: Listed equity investments and corporate bonds, commercial loans and unlisted equity investments, project finance, mortgages, commercial property, vehicle loans and government bonds. The data sources used generally include all regions and sectors.
Differentiation
All analyses are carried out at deal level. Climcycle uses data that is as differentiated as possible (internal and external). If individual data is not available, Climcycle uses average data for sectors and regions.
Use Case
Automated calculation of financed CO2 emissions
With the help of Climcycle, the financed emissions and CO2e intensities of a portfolio can be calculated on the basis of the globally used PCAF standard. For this purpose, the financed emissions are determined at transaction level using the most accurate data available and the emissions intensity and a score for the quality of the calculation method are subsequently derived.
