| Financed emissions refer to the greenhouse gas emissions generated by companies and projects that are funded or invested in by financial institutions, such as banks, asset managers, and insurers. Unlike direct emissions from their own operations, financed emissions account for the environmental impact of the businesses they support through loans, equity, or other financial services. As climate concerns grow, measuring and reducing financed emissions has become a crucial step in aligning financial portfolios with global sustainability goals. Tools like the Partnership for Carbon Accounting Financials (PCAF) framework help institutions track and report these emissions transparently. |
