PACTA versus PCAF
From Open Risk Manual
Revision as of 11:20, 15 November 2021 by Wiki admin (talk | contribs)
PACTA versus PCAF
A carbon footprint approach involves estimating the total amount of CO2 emissions associated with a portfolio. As an output, carbon footprinting gives a single-figure indicator (CO2 emission of the portfolio) and an estimate of which sectors are carbon-intensive versus those that are not. While this approach is useful to help a bank to identify the ‘hotpots’ in the portfolio that need action first, the top-down estimates make the approach a means to arrive at an estimated measurement, not a methodology for target-setting or portfolio steering
