PWC, PCAF Partner to Help Banks, Investors Measure & Report Financed Emissions - ESG Today

Nature & Climate Perspective

**Standardized measurement of financed emissions directs institutional capital away from carbon-intensive activities toward high-integrity ecological restoration. **

• Rigorous portfolio auditing discourages debt and equity financing for projects driving habitat degradation, supporting localized biodiversity preservation.
• Transparent emissions reporting channels indirect private finance toward verifiable carbon sequestration activities, including LULUCF and Blue Carbon projects.
• Enhanced accountability in corporate capital deployment reduces long-term ecological risks and supports environmental stability.

Market & Policy Outlook

**The PwC and PCAF strategic collaboration accelerates global institutional adoption of standardized Scope 3 Category 15 reporting across financial markets. **

• Establishes institutional infrastructure that aligns portfolio disclosures with the rigorous measurement expectations of the ICVCM Core Carbon Principles.
• Reduces financial sector greenwashing risks, enabling precise carbon risk pricing and boosting market liquidity for transition finance.
• Provides financial institutions with the verifiable audit trails required to establish and maintain validated SBTi targets.