Carbon footprint · PCAF ESG data processes
CLIENT
Asset manager for real assets
EXPERTISE
CO₂ accounting in accordance with PCAF
SERVICE
Definition of data collection processes, preparation of the emissions inventory in accordance with the PCAF Standard A, calculation of emissions avoided using the PCAF methodology
01 INITIAL SITUATION
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An asset manager specialising in real assets wanted, for the first time, to account for the financed emissions in its portfolio – that is, the emissions generated by its investments and attributed to it on a pro rata basis.
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The reason for this was the voluntary report in accordance with ESRS. At the same time, investors also expect reliable data on financed emissions.
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In addition to financed emissions, avoided emissions were also to be recorded – that is, the contribution that renewable energy projects make to reducing emissions.
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However, the asset classes within the portfolio have very different requirements, and not all of them are covered equally well by the Partnership for Carbon Accounting Financials (PCAF) standard.
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Furthermore, to ensure the reliable collection of the necessary data for subsequent reports, the processes should be formalised to a greater extent.
02 APPROACH
STEP 01
Scope and methodology
Firstly, we defined which items are included in the financial statements and assigned the relevant method from the PCAF standard to each asset class.
STEP 03
Avoided emissions
For renewable energy generation assets, we have calculated the emissions avoided in accordance with the supplementary PCAF guidance. The benchmark used was the electricity generation that these assets replace within the respective grid.
STEP 02
Financing and attribution
For the purposes of attribution, we have obtained the necessary financial data and calculated the attribution factor for each asset – that is, the ratio of the amount invested to the value of the asset.
STEP 04
Building the inventory
Finally, we consolidated and reported the financed and avoided emissions by asset class in the inventory. Emissions from electricity consumption were calculated on both a site-specific and a market-based basis.
03 RESULTS
Emissions inventory by asset class
The inventory sets out the proportion of investors and the total emissions of the assets for each asset class. It can therefore be used directly for reporting in accordance with ESRS and for investor enquiries.
Data quality according to PCAF
Each position is assigned a PCAF data quality level. Across all asset classes, the issue data achieves a Data Quality Score of Level 2 on a scale of 1 to 5.
Traceable documentation
Methods, assumptions and data sources are documented in such a way that every figure can be traced back to the raw data source. This also applies in relation to auditors and in subsequent reporting years.