Financed Emissions Course
Designed for advisors and organisations who are accounting for emissions from banks and investments.
Accounting for Financed Emissions Course
Who is it for?
This course is designed for advisors, accountants, and finance professionals wanting to strengthen their understanding about financed emissions and the Partnership for Carbon Accounting Financials (PCAF) standards.
What does the financed emissions course cover?
5 Chapters including videos, notes, practical worked examples and quizzes. The course is designed to be self-paced, we estimate each chapter will take 1 hour, in total taking around 6 hours to complete the course.
Module 1: Introduction to Financed Emissions
Video: 17 minutes
Chapters: 8
Module Objectives:
- An introduction to Financed Emissions
- An introduction to Financed Emissions
- Outline the different asset classes that are part of financed emissions accounting
Additional Reading:
- Partnership for Carbon Accounting Financials - Financed Emissions Standard
- GHG Protocol Scope 3 Guidance - Chapter 15: Investments
- The Time for Green Finance, Carbon Disclosure Project (2020)
Chapters:
- What are Financed Emissions?
- Importance of measuring Financial Emissions
- What is PCAF?
- What is included in the Finance Emissions Standard?
- Determining the relevant asset class
- Differences from the GHG protocol
- The PCAF Approach to Data Quality
- Quiz
Module 2: Accounting for Equity and Debt Investments
Video: 12 minutes
Chapters: 7
Module Objectives:
- Understand what equity and debt investments include
- Understand how to calculate an attribution factor
- Calculate emissions due to equity and debt emissions
Additional Reading:
- PCAF Financed Emissions Standard
- TCFD Metrics and Targets Guidance
- IFRS Sustainability Standards
Chapters:
- What are equity or debt investments?
- Which scopes are covered?
- Attribution of emissions
- Calculating financed emissions
- Worked Example
- Quiz
Module 3: Accounting for Project Financing
Video: 10 minutes
Chapters: 7
Module Objectives:
- Understand what project financing includes
- Calculate emissions from project financing
- Understand avoided emissions
Additional Reading:
- PCAF Financed Emissions Standard
- CIP ESG Report 2022
- European Commission - Annex A: Methodology for calculation of GHG emission avoidance
- Methodological Approach for the Common Default Grid Emission Factor Dataset
Chapters:
- Financial Emissions - Accounting for Project Financing
- What is included under project financing?
- Avoided emissions and Carbon Removals
- Attribution and calculation of emissions
- Project Lifetime Emissions
- An Example
- Quiz
Module 4: Accounting for Other Financed Emissions
Video: 11 minutes
Chapters: 8
Module Objectives:
- Understand the Emissions From Commercial Real Estate
- Understand the Emissions From Mortgages
- Understand the Emissions From Motor Vehicle Loans
- Understand the Emissions From Sovereign Debt
Additional Reading:
- PCAF Financed Emissions Standard
- Bank of Australia Impact Report 2022 page 99 Mortgage and Commercial Loans Disclosure - example of a bank's current disclosure associated with finance emissions for some of the Asset Classes outlined in this module.
- Bendigo Bank Finance Emissions Methodology - example of a retail bank's disclosure relating to financed emissions.
- Bank of America TCFD 2022 - Example of a large retail bank and the specific industry focused financed emissions reporting.
Chapters:
- Financial Emissions - Accounting for other sources
- Intro to the remaining asset classes
- Commercial Real Estate
- Mortgages
- Motor Vehicle Loans
- Sovereign Debt
- Attribution and calculation of emissions
- Worked Example
- Quiz
Module 5: Reporting, Risk and the TCFD
Video: 14 minutes
Chapters: 6
Module Objectives:
- Understand the importance of Climate Reporting
- Introduction into the Task Force on Climate-Related Financial Disclosure
- Introduction into the other Reporting Frameworks and Initiatives
- Understand the additional reporting requirements under PCAF
Additional Reading:
- PCAF Financed Emissions Standard
- CDP and PCAF data quality alignment
- SBTI Financial Institution Guidance
Chapters:
- Financial Emissions - Reporting, Risk and the TCFD
- Risks - Why reporting matters
- The Task Force on Climate-Related Financial Disclosures (TCFD)
- How does PCAF fit in with other initiatives and frameworks?
- Additional PCAF Reporting Requirements
- Example: Weighted Average Data Quality
- Quiz