Financed emissions,
PCAF-aligned.
For banks, asset managers and insurers, Scope 3 Category 15, financed emissions, is where the regulatory and investor pressure is concentrated. CarbonTool structures portfolio-level emissions data using PCAF-aligned methodology, ready for CSRD disclosure and investor reporting.
ESRS G - Governance
ESRS S - Social
ESRS E - Environmental
56% Completed
Understand the Process
Financed emissions by asset class
PCAF requires financed emissions to be calculated separately across listed equity, corporate bonds, business loans, mortgages, motor vehicle loans and project finance. CarbonTool applies the correct PCAF methodology and data quality scoring per asset class, not a single proxy across the portfolio.
Own operational emissions
Scope 1 and 2 from offices, data centres and company vehicles, plus Scope 3 from business travel, purchased services and employee commuting, are required under CSRD alongside financed emissions. CarbonTool structures operational and portfolio emissions in one inventory, with separate reporting outputs for each.
Portfolio climate risk exposure
Regulators and investors increasingly require financial institutions to disclose climate-related transition and physical risk across loan and investment portfolios. CarbonTool connects emissions intensity data to portfolio positions, giving risk teams a structured basis for scenario analysis and stress testing.
CSRD and regulatory disclosure
CSRD requires financial institutions to disclose financed emissions, double materiality assessments and value chain data with audit-level traceability. CarbonTool produces disclosures structured to the European Sustainability Reporting Standards, traceable back to source data.
Built for portfolio-level emissions complexity
Financed emissions data sits across loan management systems, investment platforms, counterparty disclosures and third-party emissions databases. CarbonTool consolidates it into a PCAF-aligned inventory by asset class and counterparty, maintained continuously and structured for every disclosure requirement your institution faces.
Build your PCAF-aligned inventory
Map financed emissions across your loan and investment portfolio using PCAF methodology. CarbonTool applies asset-class-specific calculation approaches, assigns PCAF data quality scores and flags where primary counterparty data would improve accuracy. Engagement effort is prioritised where it reduces uncertainty most.
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Collect counterparty emissions data through structured requests or third-party databases. Where borrower or investee data is unavailable, CarbonTool applies sector-based proxies that maintain inventory completeness and replaces estimates automatically as primary data is received.
Emissions by Month
Scope 1
9.5% increase
Scope 3
24% decrease
Report to regulators and investors
Generate CSRD disclosures, TCFD-aligned climate reports and investor ESG questionnaire responses from the same underlying data. One structured inventory, multiple output formats, without manual reformatting or recalculation before each reporting deadline.
E1 Climate Change
Topics (0 selected)
E1-1 Transition Plan for Climate Change Mitigation
E1-2 Policies Related to Climate Change Mitigation and Adaptation
E1-3 Actions and Resources in Relation to Climate Change Policies
Gain Sustainability Insights
Got more questions?
Can't find what you're looking for? Check the FAQs below, or reach out and we'll get back to you within one business day.
The Partnership for Carbon Accounting Financials (PCAF) is the methodology standard for measuring and disclosing financed emissions, such as the Scope 3 Category 15 emissions generated by a financial institution’s loans and investments. PCAF is referenced in CSRD, aligned with GHG Protocol and increasingly required by regulators and investors as the basis for portfolio emissions disclosure. CarbonTool applies PCAF methodology across all six asset classes with the correct data quality scoring framework.
Where counterparties have not disclosed emissions data, CarbonTool applies PCAF-approved sector-based proxy factors by industry classification and geography. These maintain inventory completeness while primary data collection is in progress. As counterparties provide actual data, the inventory shifts from proxies to verified figures and PCAF data quality scores improve accordingly. The platform tracks this progression across the portfolio.
CSRD requires financial institutions to disclose Scope 1, 2 and 3 emissions, including financed emissions, with audit-level traceability and double materiality assessment. CarbonTool structures all emission categories to the standard required by the European Sustainability Reporting Standards, maintains data provenance back to source and generates disclosures that auditors can verify without manual reconstruction of the underlying calculation.
Yes. CarbonTool connects portfolio emissions intensity data to climate transition scenarios, including NGFS pathways, to support quantitative assessment of transition risk exposure by sector and geography. This gives risk and treasury teams a structured, data-backed basis for regulatory stress testing and internal capital allocation decisions related to climate risk, without building a separate modelling environment.
Financed emissions are now a regulatory line item.
Treat them like one
Banks, asset managers and insurers facing CSRD obligations, investor ESG requirements or central bank climate risk reporting need PCAF-aligned portfolio emissions data that is traceable, methodology-backed and audit-ready. CarbonTool gives you the structure to build it and keep it current as your portfolio changes.