PCAF for non-bank lenders: financed emissions with an honest data quality score
A financed emissions total without its data quality score is half a disclosure. PCAF asks for both, and a non-bank lender can produce both from data it mostly already holds.
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What PCAF asks for
The Global GHG Accounting and Reporting Standard of the Partnership for Carbon Accounting Financials (PCAF) attributes a borrower's emissions to the lender in proportion to the lender's share of financing. Each figure carries a data quality score from 1 (verified, reported emissions) to 5 (estimates from sector averages).
Where a non-bank lender starts
- Tag every exposure by sector code and location
- Group the book by PCAF asset class (business loans, motor vehicle loans, mortgages and others)
- Start with the largest classes on score 4 or 5 estimates, and say so
- Collect borrower data on the largest exposures to move them up the ladder
Why the score is the honest part
A first disclosure on score 4 or 5 is normal. What matters is showing the score and a plan to improve it. A total without its score invites the question no lender wants: how do you know?
NBFI carbon footprint
Operational and financed emissions on the PCAF standard, with a data quality score for every number.
From EGP 180,000. How engagements run
Questions
What is a PCAF data quality score?
A rating from 1 to 5 for how reliable each financed emissions figure is, from verified reported emissions (1) to sector-average estimates (5).
Can a small lender apply PCAF?
Yes. The standard is designed to start with estimates and improve as borrower data arrives.
Which asset classes does PCAF cover?
Among others: listed equity and bonds, business loans and unlisted equity, project finance, commercial real estate, mortgages and motor vehicle loans.
Cite this guide
Hamdy, O. (2026) "PCAF for non-bank lenders: financed emissions with an honest data quality score". omarhamdy.com. https://omarhamdy.com/guides/pcaf-for-nbfis/