Summary

This section provides an overview of the methodology that will be applied to the GHG assessment. It defines why the specific data is relevant, how it will be measured, and what categories or frameworks are used.

Why consider emissions from Investments?

Financed emissions represent the greenhouse gas emissions associated with investments, lending, and other financial services. They are a crucial component of a financial institution's carbon footprint, often representing the largest source of emissions impact (> 90%).
Even with a minority stake in the asset, the investor needs to include the asset’s financed emissions in its GHG assessment.

Type of raw data

Advanced module

Investment date: dd/mm/yyyy
Ownership in the Fund (%): For indirect investments (e.g., fund of funds), this represents the first attribution factor between the invested fund and the investor
Outstanding amount:
Listed Equity: The value of outstanding listed equity is defined based on its market value (i.e., market price times number of shares)
Unlisted Equity: Outstanding value of equity that the financial institution holds in the private company. It is calculated by multiplying the relative share of the financial institution in the respective investee by the total equity of the respective investee according to its balance sheet
Corporate Bonds: Book value of the debt held by the financial institution (can be found on the balance sheet)
Business loans: Book value of the debt held by the financial institution (can be found on the balance sheet)
Asset value:
Listed Equity: The sum of the market capitalization of ordinary shares at fiscal year-end, the market capitalization of preferred shares at fiscal year-end, and the book values of total debt
Unlisted Equity: Equals the total equity of the investee (count 0 if negative) + the long term and current debt that can be found on the investee balance sheet
Corporate Bonds: EVIC (for listed equities)or Total Equity + Debt (for unlisted equities)
Business loans: EVIC (for listed equities)or Total Equity + Debt (for unlisted equities)

End-to-end module

Investment date: dd/mm/yyyy
Outstanding amount:
Listed Equity: The value of outstanding listed equity is defined based on its market value (i.e., market price times number of shares)
Unlisted Equity: Outstanding value of equity that the financial institution holds in the private company. It is calculated by multiplying the relative share of the financial institution in the respective investee by the total equity of the respective investee according to its balance sheet
Corporate Bonds: Book value of the debt held by the financial institution (can be found on the balance sheet)
Business loans: Book value of the debt held by the financial institution (can be found on the balance sheet)
Asset value:
Listed Equity: The sum of the market capitalization of ordinary shares at fiscal year-end, the market capitalization of preferred shares at fiscal year-end, and the book values of total debt
Unlisted Equity: Equals the total equity of the investee (count 0 if negative) + the long term and current debt that can be found on the investee balance sheet
Corporate Bonds: EVIC (for listed equities)or Total Equity + Debt (for unlisted equities)
Business loans: EVIC (for listed equities)or Total Equity + Debt (for unlisted equities)

Processing between methodologies

Advanced module

Data processing is exactly the same, whether the assessment’s referential is GHG Protocol or BEGES

End-to-end module

Data processing is exactly the same, whether the assessment’s referential is GHG Protocol or BEGES

Types of emission factors

General information

EFs used in both investment modules (advanced and e2e) are the same and used to estimate emissions from investments - when GHG assessment result is not available.

Advanced module

The EFs used to estimate emissions from investments - when GHG assessment result is not available - are from the Exiobase database (estimation of a company's GHG assessment result (Scope 1, 2 & 3) based on its country of operation and NACE code (kgCO₂/€ of revenue)).
When revenue data is unavailable, the number of employees is used to estimate the asset's GHG emissions. In this case, the Greenly client benchmark based on industry-specific GHG results is used as the EF (kgCO₂e/employee).

End-to-end module

The EFs used to estimate emissions from investments - when GHG assessment result is not available - are from the Exiobase database (estimation of a company's GHG assessment result (Scope 1, 2 & 3) based on its country of operation and NACE code (kgCO₂/€ of revenue)).
When revenue data is unavailable, the number of employees is used to estimate the asset's GHG emissions. In this case, the Greenly client benchmark based on industry-specific GHG results is used as the EF (kgCO₂e/employee).