How to calculate financed emissions (PCAF standard)

How to Calculate Financed Emissions (PCAF)

The PCAF standard can be used to calculate your financed emissions from your investments in portfolio companies.

If you do not see PCAF in the side navigation but need access, please reach out to support@atlasmetrics.io.

The calculation works as follows:

• Go to the PCAF metrics page in the left-hand menu
• Select the relevant fund
• Choose the disclosure “Total Financed Emissions”

You will now see all required data inputs for the calculation. You need to complete two types of data points:

External data (provided by portfolio companies)

• Scope 1 emissions
• Scope 2 emissions
• Scope 3 emissions

Internal data (provided by you)

• Total invested amount per portfolio company
• Additional financial inputs (e.g. Total debt and equity)

How to handle missing emissions data

If a portfolio company has not provided emissions data, choose one of the following options:

Option A: Submit without data

• Leave emissions data empty
• The company will be excluded from the calculation

Option B: Estimate emissions (recommended)

• Use the Carbon Estimator to generate emissions data

To estimate emissions using the Carbon Estimator

• Navigate to the Carbon Estimator within the PCAF standard page in the left side-bar
• Select the relevant scope (Scope 1, 2, or 3)
• For each portfolio company, enter and then submit:
  • Country of establishment
  • Portfolio company
  • Sector
  • Revenue
• The system will automatically calculate estimated Scope 1, 2, and 3 emissions.

Transfer estimated values

• Copy the estimated emissions (e.g. Scope 1)
• Return to the relevant emission data entry in the PCAF metric (e.g. Scope 1)
• Enter the value for the respective company
• Submit the data point

How to finalise your financed emissions

• Go back to the PCAF metric
• Enter and submit data for Total Invested Amount, Total Debt and Total Equity for each portfolio company. Make sure to not omit any of these data points. If total debt is zero, please enter the value zero for each portfolio company.
• If all required data points are completed and submitted, the system will automatically calculate: Total financed emissions (PCAF)
• The calculated value is automatically transferred to:
  • Carbon Accounting → Metrics → Result: Scope 3
• Submit the Scope 3 data point.