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.
In practice
The figure covers what the borrower's asset emits, multiplied by the bank's share of the financing. It sits in Scope 3 for the bank, and it is reported gross, with avoided emissions kept separate.
Related terms.
Scope 3 Emissions
All other indirect emissions in an organization's value chain, including both upstream and downstream emissions such...
Attribution Factor
The share of the total annual emissions of a borrower or investee that is allocated to the reporting financial...
PCAF
The Partnership for Carbon Accounting Financials is a global partnership of financial institutions working together...
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