PCAF-CARBON-ACCOUNTING

Financial institutions financed emissions standard.

Definition

PCAF Global GHG Accounting and Reporting Standard for Financial Industry published 2020 ; 2nd edition published 2022. Asset Classes covered: Listed equity and corporate bonds, Business loans and unlisted equity, Project finance, Commercial real estate, Mortgages, Motor vehicle loans, Sovereign debt. Data Quality Score 5 levels (1 reported verified - 5 estimated based on proxies). Key integration with PRB (Principles for Responsible Banking UNEP-FI), SBTi for Financial Institutions, NZBA Net-Zero Banking Alliance.

Origin

PCAF initiated 2015 by 14 Dutch financial institutions ; North America expansion 2019, global 2020 ; PCAF Standard published 2020 ; ~470 signatories 2024.

Example in context

JPMorgan Chase uses PCAF methodology to measure its financed emissions ~700 MtCO2e (Scope 3 cat 15 investments) ; annual reporting and SBTi target oil-gas portfolio 2050 net zero.

Related terms

• SBTi — aligned targets.