How Plan A Calculates Investment Emissions

The calculation methodology adheres to the methodological recommendations for calculating financed emissions from motor vehicle loans, as published by the Partnership for Carbon Accounting Financials (PCAF).

Financed emissions are estimated based on primary physical activity data collected from the debtor company and are subsequently allocated to the user using an attribution factor. Within this asset class, the attribution factor is determined by the outstanding amount, defined as the value of the debt owed by the debtor to the creditor, and the total value at origination, which is the total value of the motor vehicle at the time the loan was originated.

Emissions from the primary activities are calculated using fuel and electricity consumption data provided by the debtor company. The consumption of each specific fuel type is multiplied by an applicable emission factor that corresponds to the fuel type, timeframe, and geographical location where the fuel or electricity is used or combusted.

Within this scope category, the emission factor encompasses well-to-wheel emissions, meaning both tank-to-wheel emissions and well-to-tank emissions. Similarly, Plan A accounts for emissions from both energy production and generation, transmission and distribution for vehicles that use electricity as an energy source.

The calculation methodology adheres to the methodological recommendations for calculating financed emissions from motor vehicle loans, as published by the Partnership for Carbon Accounting Financials (PCAF).

Financed emissions are estimated based on primary physical activity data collected from the debtor company and are subsequently allocated to the user using an attribution factor.

Within this asset class, the attribution factor is determined by the outstanding amount, defined as the value of the debt owed by the debtor to the creditor, and the total value at origination, which is the total value of the motor vehicle at the time the loan was originated.

Emissions from the primary activities are calculated using distance and fuel efficiency data provided by the debtor company. The calculation method entails multiplying the average fuel and electricity consumption (also referred to as vehicle efficiency) by the distance travelled and by the emission factors relevant to the specific fuel type, timeframe, and geographic location (country where the fuel is burned).

Within this scope category, the emission factor encompasses well-to-wheel emissions, meaning both tank-to-wheel emissions and well-to-tank emissions. Similarly, Plan A accounts for emissions from both energy production and generation, transmission and distribution for vehicles that use electricity as an energy source.

The calculation methodology adheres to the methodological recommendations published by the Partnership for Carbon Accounting Financials (PCAF) for calculating financed emissions utilising the economic allocation method for the following asset classes:

Financed emissions are estimated using the economic allocation method and are allocated to the reporting company using an attribution factor.

In accordance with the PCAF framework, attribution factors for the given asset classes are calculated using the outstanding amount and the EVIC (enterprise value including cash) or total equity and debt values, dependent on the chosen asset class and investee type.

For the following asset groups, Plan A guides the reporting company to use EVIC in the denominator of their attribution factor:

For the following asset groups, Plan A guides the reporting company to use total equity and debt values in the denominator of their attribution factor:

Emissions from the investee are calculated using the revenue data of the investee and EXIOBASE emission factors. The chosen EXIOBASE emission factors are determined by the time frame, geographical location and economic sector in which the investor is located. The investee's revenue is then multiplied by the applicable emission factor and allocated to the reporting company.

The calculation methodology adheres to the methodological recommendations published by the Partnership for Carbon Accounting Financials (PCAF) for reporting financed emissions for the following asset classes:

Financed emissions itself are not calculated by Plan A. The reporting company inputs Scope 1 to 3 emission data and Plan A is helping the company to allocate the emissions according to the guidelines published by PCAF.

In accordance with the PCAF framework, attribution factors for the given asset classes are calculated using the outstanding amount and the EVIC or total equity and debt values, dependent on the chosen asset class and investee type.

For the following asset groups, Plan A guides the reporting company to use EVIC in the denominator of their attribution factor:

For the following asset groups, Plan A guides the reporting company to use total equity and debt values in the denominator of their attribution factor:

Bring Your Own Emissions allows you to upload your own pre-calculated emissions to the Plan A platform. For more information, see here.