1. User Guide
  2. GHG Emissions Calculator
  3. Emissions Calculator

Emissions Calculator

This chapter provides detailed information about the Greenhouse Gas Emissions Calculator.

Calculation of Global Warming Potential (GWP)

The application helps banks and financial institutions calculate GHG emissions based on the 100-year Global Warming Potential (GWP) of the following greenhouse gases by using the various synthesis reports published by the Intergovernmental Panel on Climate Change (IPCC) - AR4, AR5 and AR6. This calculation is applicable to all emission categories of Scope 1, 2 and 3, wherever an emission factor is required.

Note:

This has to be calculated only for those records where we do not necessarily do not compute individual/disaggregated values for each of these gases (i.e. emission factors not available for these).
  1. CH4
  2. N20
  3. HFCs
  4. PFCs
  5. SF6
  6. NF3

Pre-built Model/Infrastructure for Emission Factor Database Sources

The application is pre-equipped to support the usage of various emission factor database sources and/or emission factors from various vendors or data providers. As part of this functionality, the solution has pre-seeded these data elements across various database sources in form of hierarchies. Below is a list of emission factor database sources for which hierarchies are pre-seeded in the application across available emission categories.
Emission Factor Database/Source
UNFCC
DEFRA
EPA
GHG Protocol
PCAF
IFI

Asset Classes supported in the Emissions Calculator

Following is the list of asset classes that is currently supported by the emissions calculator engine to calculate Financed and Facilitated Emissions based on the PCAF Global GHG Accounting & Reporting Standard.

  • Equity (Listed and Unlisted)
  • Business Loans (Listed and Unlisted)
  • Corporate Bonds (Listed and Unlisted)
  • Project Finance
  • Commercial Real Estate
  • Mortgages
  • Motor Vehicle Loans
  • Facilitated Emissions
  • Sovereign Debt

Emission Intensity Metrics

Application supports calculation of below set of emission intensity metrics as part of the overall package within Emissions Calculator. These are based on the PCAF Global GHG Accounting & Reporting Standard.
  1. Weighted average carbon intensity (WACI): Objective is to understand the exposure to emission intensive companies expressed as tCO2 e/€M or $M of reporting company’s investee or counterparty revenue.
  2. Economic emission Intensity: Objective is to understand how the emission intensities of different portfolios (or parts of portfolios) compare to each other per monetary unit. It is expressed as tCO2 e/€M or tCO2 e/$M loaned or invested by the reporting company.
  3. Production emission Intensity: Objective is to understand the efficiency of a portfolio (or parts of a portfolio) in terms of total GHG emissions per unit of a common output. It is expressed as tCO2 e/MWh, tCO2 e/tonne product produced by the reporting company’s investee or counterparty.
  4. Consumption emission Intensity: Objective is to understand the efficiency of a portfolio (or parts of a portfolio) in terms of total GHG emissions per unit of a common output. It is expressed as units of product consumed by the reporting company’s investee or counterparty.
  5. Carbon Footprint: It refers to the total carbon emissions for a portfolio normalized by the market value of the portfolio, expressed in tons CO2e / $M invested.
  6. Carbon Intensity: It refers to the volume of carbon emissions per million dollars of revenue (carbon efficiency of a portfolio), expressed in tons CO2e / $M revenue.
  7. Exposure to Carbon-Related Assets: It refers to the amount or percentage of carbon-related assets34 in the portfolio, expressed in $M or percentage of the current portfolio value.

For more details around the calculation methodology, please refer to the Reference Guide on MOS page.

Financed Emissions and other metrics calculated for the Asset Management Industry as part of the EU’s SFDR Regulation are listed below:

The folloing are the metrics calculations for the asset management industry:
  • Scope 1 GHG Emissions
  • Scope 2 GHG Emissions
  • Scope 3 GHG Emissions
  • Total GHG Emissions
  • Carbon Footprint
  • GHG Intensity
  • Exposure to companies active in the fossil fuel sector
  • Share of non-renewable energy consumption
  • Share of non-renewable energy production
  • Energy consumption intensity per high impact climate sector
  • Exposure to energy-inefficient real estate assets