Operationalize PCAF by treating each exposure as a transaction with clear attribution and method metadata. For loans, record instrument type, counterparty, exposure (outstanding amount or EVIC share), reporting date, attribution factor, and the investee’s emissions (or estimated per PCAF hierarchy) with a data-quality score. For listed equity and corporate bonds, use ownership share based on enterprise value including cash (EVIC). For project finance, attribute 100% where appropriate and allocate by debt share if syndicated.
Each ledger line should include: Scope coverage of investee emissions, reporting boundary alignment (GHG Protocol Category 15), PCAF asset class method/version, data-quality score (1–5), and currency/FX at measurement date. Maintain factor catalogs for EVIC, sector proxies, and grid factors with versioning for reproducibility. Aggregate at portfolio, sector, and issuer levels while avoiding double counting (e.g., across overlapping funds).
Disclose financed emissions totals and intensity (e.g., tCO2e per $M invested) consistent with IFRS S2 and clearly state estimation methods. Retain evidence (financial statements, positions files, investee reports) to support assurance.
Key Takeaway: Treat each exposure as a standardized ledger entry with attribution, method version, and data-quality scoring to produce defensible financed-emissions disclosures.