Portfolio Climate Change Impact Metrics for Financial Services

This Technical Note outlines the methodologies for calculating portfolio climate change impact metrics as requested by CDP. It is specifically designed for banks, asset managers, and asset owners involved in financial services. The document details various aspects of climate impact metrics, including financed emissions, carbon intensity, and portfolio carbon footprint. It also provides a glossary of terms relevant to the financial sector and climate metrics, such as avoided emissions and facilitated emissions. The note includes version history, indicating updates and revisions made to align with the latest CDP climate change questionnaire. The guidance aims to assist financial institutions in accurately assessing and reporting their climate-related impacts and exposures. Furthermore, it emphasizes the importance of understanding the implications of these metrics in the context of climate change and financial accountability.