Core method

The formula

Financed emissions = Σ (attribution factorc × company emissionsc), summed across counterparties PCAF Part A, December 2025.

The attribution factor answers one question: what share of this counterparty's value does our financing represent?

The rest of the method is choosing the right denominator.

Asset class by asset class

The denominator for each asset class

  • Listed equity and corporate bonds — outstanding amount ÷ EVIC. EVIC sums the market capitalisation of ordinary shares at fiscal year end, the market capitalisation of preferred shares, and the book values of total debt and minority interests — with no deduction of cash, to avoid negative enterprise values PCAF Part A.
  • Business loans and unlisted equity— outstanding amount ÷ (total equity + debt) from the borrower's balance sheet. For unlisted equity, the outstanding amount is (shares held ÷ total shares) × total company equity PCAF Part A.
  • Commercial real estate and mortgages — outstanding amount ÷ property value at origination, held fixed for later years where the origination value cannot be obtained PCAF Part A.
  • Motor vehicle loans — outstanding amount ÷ total value at origination; where the denominator is unknown, assume 100% attribution. Once the loan is repaid, financed emissions are zero PCAF Part A.
  • Sovereign debt — exposure (disbursed debt minus repayments, adjusted annually) ÷ PPP-adjusted GDP PCAF Part A.
  • Project finance — outstanding amount in the project ÷ total project equity plus debt PCAF Part A.

The numerator

Where the emissions number comes from

The counterparty-emissions side of the formula rests on three data options in descending order of preference: Option 1, reported emissions; Option 2, physical activity-based estimates; Option 3, economic activity-based estimates PCAF and CDP.

Which option you used — and how good it was — is what the PCAF data quality score records against every position.