Envr Ledger

Case studyListed equity

Financed emissions for a listed equity portfolio, decision by decision

How Envr Ledger applied the PCAF Standard for Foresight Holdings Private Limited, a Mumbai-based investment company.

Client
Foresight Holdings Private Limited
Standard
PCAF Global GHG Accounting and Reporting Standard, Part A
Asset class
Listed equity

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
From holdings to disclosure
  1. 1

    Portfolio holdings

    value of each holding

  2. 2

    Company financials

    sector, company value, revenue

  3. 3

    Share owned

    holding value ÷ EVIC

  4. 4

    Company emissions

    revenue × industry factor

  5. 5

    Financed emissions

    share owned × company emissions

  6. 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.

  1. Decision 1

    Basis

    Revenue, with total assets as the fallback

  2. Decision 2

    Sector

    The company’s GICS sub-industry code

  3. Decision 3

    Industry

    The industry that code maps to, blended by weight where a code covers several

  4. Decision 4

    Country

    The company’s country, matched to the factor database

  5. Decision 5

    Emission factor

    The latest year available at or before the reporting year, India first

  6. Decision 6

    Currency

    Revenue converted to the factor’s currency at the year’s rate

  7. Decision 7

    Price year

    Adjusted for inflation to the factor’s year, so inflation alone doesn’t raise the estimate

  8. 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.

DisclosureHow it’s worked out
Financed emissionsSum across every holding
By scopeKept separate for Scope 1, 2 and 3
CoverageValue with an emissions figure ÷ portfolio value
Data qualityEach holding’s score, weighted by value
IntensityFinanced 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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