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16 Aug 2023

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Financial Institutions Play Critical Role in Global Decarbonization

Posted with permission from ESG Impact Zone.

What do financial institutions need for portfolio emissions measurement and reporting?

Financial institutions (FIs) must measure portfolio emissions regularly to demonstrate progress in decarbonization over time, and they must start with a baseline measurement. FIs that are ready to determine their baseline face several challenges, including incomplete or inconsistent emissions data in some areas of the business. In other areas, data may be missing entirely.

To fully understand portfolio emissions, an overwhelming number of data points must be collected and calculated, and each financial asset class has a specific methodology for accurately measuring emissions. These methodologies consider different scopes, require different data sets with varying levels of validity and use different calculation methods.

Sphera helps a wide range of organizations, including financial institutions, operationalize ESG and meet their compliance obligations. In line with the Partnership for Carbon Accounting Financials (PCAF) and the GHG Protocol, Sphera's Portfolio Management Solution provides three consolidation approaches for preparing GHG emission inventories, each affecting which activities are categorized as direct and indirect emissions.

Discover in a brand-new eBook the complexities of measuring portfolio emissions and what financial institutions need for portfolio emissions measurement and reporting.

Image from ESG Impact Zone.

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