Financed Emissions

Financed emissions are the GHG emissions attributable to a financial institution’s loans, investments, and other financial activities, representing the institution’s contribution to the carbon footprint of its clients and investees. Financed emissions fall under Scope 3 Category 15 of the GHG Protocol Corporate Value Chain Standard. IFRS S2 requires financial institutions to disclose financed emissions. In December 2025, the ISSB issued targeted amendments to IFRS S2 GHG emissions disclosures clarifying that financial firms may limit reporting to financed emissions from loans and investments (assets under management), and that facilitated emissions from investment banking and insurance underwriting are excluded.

GHG Protocol Corporate Value Chain Standard, Category 15; IFRS S2 Climate-related Disclosures (ISSB, June 2023); ISSB Amendments to Greenhouse Gas Emissions Disclosures (December 11, 2025).

For banks, insurers, and asset managers: financed emissions (Category 15) are typically the largest component of their Scope 3 inventory and require portfolio-level GHG analysis. The December 2025 IFRS S2 amendments provide significant relief by clarifying that facilitated emissions (investment banking, underwriting) are not required to be reported. Companies with bank or investor relationships face indirect pressure to provide Scope 1, 2, and 3 data to support their financiers’ financed emissions calculations.