Second Edition

Four segments, two of them new

Part C's first version (November 2022) covered two segments: commercial lines and personal motor PCAF Part C executive summary.

The Second Edition, published 2 December 2025, adds project insurance and treaty reinsurance PCAF Standard, Part C, 2nd edition.

  • Commercial lines — first version, November 2022
  • Personal motor — first version, November 2022
  • Project insurance — new: construction all-risks, erection all-risks, inherent defect
  • Treaty reinsurance — new: extends the boundary along the reinsurance chain

The boundary

Category 15, but not a financed emission

IFRS S2 defines financed emissions as the portion of an investee's emissions attributed to loans and investments IFRS S2 amendments PDF.

Insurance underwriting is a different relationship — no loan, no investment, no equity stake — so underwriting emissions sit inside Category 15 without meeting that definitionIFRS S2 amendments, Dec 2025.

IFRS S2's Basis for Conclusions records that the ISSB considered, and declined, requiring disclosure of underwriting-associated emissions for the same reason it declined to require facilitated-emissions disclosure from investment banksIFRS S2 Basis for Conclusions, BC129.

The method

"Follow the risk," not follow the capital

Part C attributes emissions based on the portion of risk transferred to the (re)insurer — not capital deployed, the way Parts A and B measure itPCAF Standard, Part C, 2nd edition.

It adds a dedicated data-quality hierarchy for insurance portfolios, and guidance on avoiding double counting along primary and reinsurance chains.

SS5/25's insurance-specific chapter applies to all UK insurance and reinsurance firms and groups within Solvency II scope, including the Society of Lloyd's and managing agents, as well as non-Solvency II firms Bank of England / PRA, SS5/25.

Disclosure

A supplementary note, never combined

Insurance-associated emissions are reported as a supplementary note within Scope 3 Category 15.

They are never aggregated into a firm's financed-emissions total — the two figures stay separate.

Still excluded from the Second Edition: public entity insurance, life and health, homeowner insurance, and some credit-related products.

The routing question — which part of PCAF applies to your institution — is on the PCAF standard page.