Financials Sector: 95% of Your Footprint Is Financed Emissions
Banks, asset managers, and insurers face growing pressure to measure and disclose Scope 3 Category 15 (financed emissions) from loan and investment portfolios. NetNada automates PCAF calculations across asset classes, tracks portfolio decarbonization, and generates investor-grade climate disclosures.
Common Emission Challenges in Financials
Financial institutions must calculate emissions from hundreds of thousands of portfolio companies and projects while navigating evolving PCAF methodologies and regulatory requirements across jurisdictions.
Financed Emissions Calculation (Scope 3 Category 15)
Allocating borrower/investee emissions to your portfolio requires PCAF methodology: Attribution Factor = Outstanding Amount ÷ (Enterprise Value + Debt). Data availability varies by asset class (listed equity 95%, private equity 40%).
Multi-Asset Class Coverage
PCAF covers 7 asset classes: listed equity, corporate bonds, business loans, project finance, commercial real estate, mortgages, motor vehicle loans. Each has different data requirements and calculation approaches.
Data Quality Scoring
PCAF requires reporting data quality scores (1-5) based on emission data source: Score 1 (reported data), Score 5 (sector averages). Investors demand Score 1-2 coverage >80% of portfolio.
Portfolio Decarbonization Target Setting
Net Zero Banking Alliance and Net Zero Asset Manager Initiative require science-based targets. Must calculate baseline financed emissions, set reduction targets by sector, and report annual progress.
Financial Regulators Mandate Climate Risk Disclosure Globally
APRA CPG 229 (Australia) requires climate risk scenario analysis. EU CSRD applies to banks and asset managers. ISSB S2 (adopted as AASB S2 in Australia) requires financed emissions disclosure. SEC Climate Rule (if finalized) applies to US-listed financial institutions. Investors demand TCFD-aligned reporting showing climate risk integration.
Financials Industries
Select your industry for tailored carbon accounting solutions and SASB-aligned reporting guidance.
Asset Management & Custody Activities
Investment portfolio management, wealth management, and custody services for institutional and retail investors.
Learn moreCommercial Banks
Deposit-taking and lending institutions serving individuals, corporations, and infrastructure projects.
Learn moreConsumer Finance
Credit card lending, auto loans, student loans, and consumer-to-consumer payment services.
Learn moreInsurance
Property, casualty, life, and reinsurance products plus annuities and alternative risk transfers.
Learn moreInvestment Banking & Brokerage
Capital markets services including underwriting, M&A advisory, trading, and securities brokerage.
Learn moreMortgage Finance
Residential and commercial mortgage lending, servicing, and mortgage-backed securities.
Learn moreCalculate Financed Emissions Across Your Portfolio
See how banks and asset managers track PCAF-aligned financed emissions, set portfolio decarbonization targets, and generate regulatory climate disclosures—automated.