Reference · glossary
The words behind the numbers.
A disclosure gets argued over at the level of definitions: what counts, whose share it is, and what evidence sits behind the figure. These are the terms as we use them, with the practical question each one answers.
28 terms · updated October 2026Start with three that decide the rest.
01
Financed Emissions
Greenhouse gas emissions that are indirectly caused by financial institutions through their loans and investments, representing the emissions of the entities they finance.
02
Data Quality Score
A PCAF metric ranging from 1 (highest quality, audited data) to 5 (lowest quality, estimated data) that indicates the reliability and accuracy of emissions data used in calculations.
03
Audit Trail
A dated, ordered record of every action, decision and data change behind a figure, so a reviewer can follow it back to the source file and the person who approved it.
Every term, A to Z.
Each entry carries a working definition and a note on where the term shows up in a loan book or an audit.
Attribution FactorThe share of the total annual emissions of a borrower or investee that is allocated to the reporting financial institution, based on the outstanding amount and the total value of the company.Audit TrailA dated, ordered record of every action, decision and data change behind a figure, so a reviewer can follow it back to the source file and the person who approved it.Avoided EmissionsGreenhouse gas emissions that are prevented from occurring as a result of financing green assets such as electric vehicles, renewable energy projects, or energy-efficient buildings. Avoided emissions are measured separately from financed emissions and must never be netted against them.
Carbon AccountingThe process of measuring, reporting, and verifying greenhouse gas emissions from an organization's operations and value chain activities.Category 15Under the GHG Protocol, Category 15 covers emissions from investments, including financed emissions from loans, equity investments, and other financial products.
Data LineageThe complete record of data's origins, movements, and transformations throughout its lifecycle, enabling verification of how final results were derived from source inputs.Data Quality ScoreA PCAF metric ranging from 1 (highest quality, audited data) to 5 (lowest quality, estimated data) that indicates the reliability and accuracy of emissions data used in calculations.
Emissions EngineThe working system of record for portfolio emissions. Calculations run and are re-run as data improves, and every methodology decision is kept alongside the figure it produced.Emissions FactorA coefficient that converts activity data (such as fuel consumption or distance traveled) into greenhouse gas emissions, typically expressed as kg CO2e per unit of activity.Evidence PackA frozen, cryptographically signed bundle of all inputs, methodology declarations, approval chains, and computed outputs that together constitute the complete audit trail for a single financed emissions workspace.
GHG ProtocolThe Greenhouse Gas Protocol provides the world's most widely used greenhouse gas accounting standards for companies and organizations to measure and manage emissions.Green AssetA financial asset that supports environmental objectives, such as renewable energy projects, electric vehicles, or energy-efficient buildings.Green TaxonomyA classification system that defines which economic activities qualify as environmentally sustainable, used to guide investment decisions and prevent greenwashing.
PCAFThe Partnership for Carbon Accounting Financials is a global partnership of financial institutions working together to develop a harmonized approach to assess and disclose the greenhouse gas emissions associated with their loans and investments.PCAF Section 5.6The section of the PCAF Global GHG Accounting and Reporting Standard that defines the methodology for measuring financed emissions from motor vehicle loan portfolios, including attribution formulas, data quality scoring criteria, and emission factor requirements specific to vehicle financing.Portfolio CoverageThe percentage of a financial institution's total portfolio that has been assessed for financed emissions, indicating the completeness of climate disclosure.
RecordA sealed file exported from the platform containing the source files, methodology declarations, factor versions and approvals behind one set of financed emissions figures.Results-Based FinanceA financing approach where payments are tied to the achievement of verified outcomes or results, commonly used in climate and development finance.
Scope 1 EmissionsDirect greenhouse gas emissions from sources owned or controlled by an organization, such as company vehicles and on-site fuel combustion.Scope 2 EmissionsIndirect greenhouse gas emissions from purchased electricity, steam, heating, and cooling consumed by an organization.Scope 3 EmissionsAll other indirect emissions in an organization's value chain, including both upstream and downstream emissions such as financed emissions for financial institutions.Sustainable FinanceFinancial services that integrate environmental, social, and governance (ESG) criteria into business decisions for the lasting benefit of clients and society.
Tank-to-Wheel EmissionsEmissions produced during the operation of a vehicle, measuring only the direct tailpipe emissions from fuel combustion, excluding upstream fuel production.tCO2eTonnes of carbon dioxide equivalent, a standard unit for measuring greenhouse gas emissions that accounts for the global warming potential of different gases.
A definition is not a disclosure.
If a term here is the one your file cannot answer, bring the portfolio and we will walk the method through with your team.