This article provides detail on why – if you input reported emissions data from an asset - you must also input financial ‘emissions calculation’ data to obtain a PCAF score and financed emissions result
Pathzero Navigator is designed to be flexible enough to be used to calculate financed emissions no matter the data you have available.
In many instances, an investment manager may already know the reported emissions of an asset. This may have been calculated by a consultant or the asset itself and reported directly to the investment manager.
This ‘reported data’ is the gross emissions of the asset – the total emissions of that asset. To accurately calculate financed emissions, it is crucial to determine the portion of gross emissions that can be attributed to the investment manager. This attribution allows for a precise assessment of the emissions that have been financed.
As such, if you begin your journey on Pathzero Navigator by inputting reported emissions data from an asset, you will then need to complete the financial data fields in the ‘emissions calculation’ page to complete the financed emissions calculation.
Starting with reported emissions data
If you input PCAF 2 or 1 level reported emissions data from an asset, you will be able to analyse the ‘gross’ emissions of the asset on the Analysis page.
However, the platform will not know how much of those gross emissions to apportion to the investment manager as the key financial data points have not been inputted. As such, you will not be able to achieve a PCAF score and analyse the ‘financed emissions’ until the required financial data points have been added on the ‘emissions calculation’ page.
The exact fields that are required will differ depending on the type of asset (Private Company, Public Company, Project, Commercial Real Estate) and whether the financing provided is equity or debt.
As such, if you have begun your journey on Pathzero Navigator by inputting the reported emissions data of an asset on the ‘emissions data’ page, be sure to then go to the ‘emissions calculation’ page and complete ALL the fields on that page to achieve a financed emission calculation.