01 · The challenge
Every holding needs an emissions figure. Not every company publishes one.
To report financed emissions, an investor needs each company’s emissions and a fair way to attribute its share. Many listed companies, especially smaller ones, don’t publish emissions yet. Foresight Holdings needed estimates that were consistent across the portfolio and in line with PCAF.
02 · Our approach
Reported first. Estimated only where it has to be.
Reported emissions
When a company publishes audited or assured emissions, we use that figure as published. A verified figure scores 1 on PCAF’s data quality scale; an unverified one scores 2.
Estimated emissions
Where no figure is reported, PCAF allows an estimate from the company’s revenue and sector.
An estimate takes three facts per company:
- Sectorpicks the right emission factor
- Company value (EVIC)sets how much the investor owns
- Revenueis the activity the factor is applied to
- 1
Portfolio holdings
value of each holding
- 2
Company financials
sector, company value, revenue
- 3
Share owned
holding value ÷ EVIC
- 4
Company emissions
revenue × industry factor
- 5
Financed emissions
share owned × company emissions
- 6
Portfolio disclosure
totals, coverage, data quality
Company value sets how much of each company the investor owns; revenue sets how much that company emits.
03 · The decisions behind every estimate
Eight decisions, in order, each one on the record.
Decision 1
Basis
Revenue, with total assets as the fallback
Decision 2
Sector
The company’s GICS sub-industry code
Decision 3
Industry
The industry that code maps to, blended by weight where a code covers several
Decision 4
Country
The company’s country, matched to the factor database
Decision 5
Emission factor
The latest year available at or before the reporting year, India first
Decision 6
Currency
Revenue converted to the factor’s currency at the year’s rate
Decision 7
Price year
Adjusted for inflation to the factor’s year, so inflation alone doesn’t raise the estimate
Decision 8
Result
Emissions by Scope 1, 2 and 3, scored 4 on PCAF’s scale
Financed emissions
= (Holding value ÷ Company value) × Company emissions
Envr Ledger takes these decisions on its own as soon as a company’s financials are added, and keeps every one with its evidence.
04 · From holdings to disclosure
One set of holding-level records. Totals that always match the detail.
| Disclosure | How it’s worked out |
|---|---|
| Financed emissions | Sum across every holding |
| By scope | Kept separate for Scope 1, 2 and 3 |
| Coverage | Value with an emissions figure ÷ portfolio value |
| Data quality | Each holding’s score, weighted by value |
| Intensity | Financed emissions per ₹ crore invested |
Breakdowns by company and sector show which holdings carry most of the emissions.
05 · Traceable by design
Every figure, back to its source.
For each estimate, we keep the factor and its year, the exchange rate, the inflation index and the share owned together. A reviewer can follow any portfolio figure back to the holding and the company figures behind it.
In Envr Ledger, each estimate opens as a step-by-step view: click any step to see why it was taken.
06 · What comes next
The picture sharpens every year.
The method repeats each reporting year. When a company starts publishing its own emissions, the reported figure replaces the estimate and the data quality score improves.
See it on your own portfolio.
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