Overview
The PCAF Global GHG Accounting & Reporting Standard, Part A: Financed Emissions (3rd Edition, December 2025) is the primary methodology document for financial institutions calculating and disclosing their Scope 3 Category 15 emissions.
The third edition expands the standard to cover ten asset classes and introduces four new methodologies: Use of Proceeds, Securitizations, Sub-Sovereign Debt, and IFRS-aligned reporting of undrawn loan commitments.
Key Takeaways
- 10 asset classes covered — Listed equity, corporate bonds, business loans, project finance, commercial real estate, mortgages, motor vehicle loans, use of proceeds, securitization, and sovereign debt
- CSRD mandatory — ESRS E1-6 Application Requirement 46 explicitly requires financial institutions to consider PCAF
- 700+ signatories — As of 2025, over 700 financial institutions with USD 94+ trillion in assets are PCAF signatories
- Data quality scoring — Five-level scoring system from verified company data (Score 1) to estimated data (Score 5)
- IFRS S2 aligned — New provisions for reporting in line with IFRS sustainability disclosure standards
Relevance to Simple Users
Simple's invoice-based emissions data can improve PCAF data quality scores for financial institutions by replacing estimated spend-based data with activity-based calculations derived from borrowers' actual business documents.