pCAF

PCAF, the Partnership for Carbon Accounting Financials, is a global initiative that aims to standardize the measurement and disclosure of financed greenhouse gas emissions—the emissions that arise from a financial institution’s loans, investments, and other financing activities. The framework provides sector-specific methodologies for calculating emissions associated with different asset classes, including project finance, corporate lending, mortgages, and investment securities. It is designed to enable comparability across portfolios and over time and to align with international reporting standards such as the Greenhouse Gas Protocol.

The partnership is open to financial institutions worldwide and is supported by a network of banks, asset managers, insurers, and non-governmental organizations. PCAF emphasizes the use of asset-level data where available, while also allowing proxies or alternative data in cases of data gaps. Calculations typically produce a financed emissions figure for a portfolio or asset class and an emission intensity metric, such as tonnes of CO2 per unit of exposure. The framework provides templates and documentation to support transparent reporting and auditability.

PCAF has published a Global GHG Accounting framework along with sector-specific methodologies to guide practitioners. The initiative seeks to help lenders and investors align portfolios with climate goals, enable benchmarking, and support decarbonization efforts across the financial system. Limitations commonly cited include uneven data availability, reliance on proxies for data gaps, and the voluntary nature of participation, which can affect comparability.