Financed emissions software: PCAF in, disclosures out

Software that attributes a share of each borrower’s or investee’s greenhouse gas emissions to the bank, insurer, asset manager or pension scheme that finances it, and reports the total.

The share is set by an attribution factor, usually the outstanding amount divided by the value of the company or asset, as PCAF Part A defines it by asset class.

The results are Scope 3 Category 15 emissions of the financial institution.

This site does not rank products and has tested none, so it names no best.

The test is whether a product applies PCAF Part A’s third edition to every asset class you hold, keeps a data-quality score per holding, and produces the outputs you owe: UK SRS S2 ¶¶B61–B63A, the ¶B59A statement where needed, FCA SDR and ESG sourcebook reports, SFDR for EU products, or the trustee TCFD report.

Software that implements the Partnership for Carbon Accounting Financials’ standard.

Ask which Part it implements, because the three Parts sit at different editions: Part A (financed emissions) third edition, December 2025; Part B (facilitated emissions) December 2023; Part C (insurance-associated emissions) second edition, December 2025.

Then ask which of Part A’s ten asset classes it calculates.

Not in the UK texts this page is built on.

UK SRS S2 ¶B61 asks for the methodology and allocation method used without naming PCAF, and the FCA Handbook does not mandate it.

The requirement is to disclose whichever method you apply, and PCAF is the published standard written for the job.

A bank or insurer listed in UKLR 6, 14, 15, 16 or 22 reports against UK SRS on a comply-or-explain basis for accounting periods beginning on or after 1 January 2027, under the FCA’s PS26/19, and UK SRS S2 asks for financed emissions from entities in commercial banking, insurance and asset management.

Everyone else applies UK SRS S2 voluntarily.

The PRA’s SS5/25 sets supervisory expectations on climate risk, not a disclosure rule.

A score from 1 to 5 for each emissions figure, where 1 is the highest data quality and 5 the lowest.

PCAF Part A says financial institutions should publish a score weighted by outstanding amount or explain why they cannot, and shall report the Scope 3 score separately.

CDP’s own scale runs the other way, from 1 to 7 with 7 the most reliable, so check which one a tool displays.

The asset-management name for the same calculation: the emissions attributed to a fund or mandate’s holdings.

UK SRS S2 ¶B61 asks an asset manager for gross financed emissions by Scope 1, 2 and 3, the assets under management included, and the percentage of total assets under management covered, with exclusions explained.

Software that filters investments against exclusions, ratings or sustainability criteria.

For a fund using an FCA sustainability label, at least 70% of gross assets must be invested in line with the objective and selected against a robust, evidence-based standard that is an absolute measure of sustainability (ESG 4.2.4R), so the screen’s standard has to be documented.

Providers of in-scope ESG ratings will need FCA authorisation from 29 June 2028 under SI 2025/1349.

Software for the FCA’s Sustainability Disclosure Requirements: the four investment labels, the naming and marketing rules on thirteen restricted terms, the consumer-facing, product-level and entity-level disclosures, and the anti-greenwashing rule that applies to every FCA-authorised firm.

The entity-level report applies to in-scope managers with £5 billion or more of assets under management, whether or not they label a fund.

Software for the EU’s Sustainable Finance Disclosure Regulation, which binds financial market participants and financial advisers, not investee companies.

It produces Article 6 disclosures for every product, the added Article 8 or 9 disclosures, and the entity-level principal adverse impacts statement under Article 4.

The Commission’s November 2025 reform proposal would replace Articles 7 to 9 with three categories; it was proposed, not adopted, when this site last checked.

Software that collects sustainability data from portfolio companies and reports it to investors, often in private markets.

For a UK manager the outputs to test are the SDR entity-level report, ESG 2.3.5AR’s Scope 1, 2 and 3 data on request, and UK SRS S2 ¶B61 if the manager’s group reports under UK SRS.

Trustees of schemes with £1 billion or more of relevant assets, and authorised master trusts and CDC schemes, publish a TCFD report within seven months of the scheme year end under SI 2021/839.

The DWP’s statutory guidance asks for at least one absolute emissions metric, one emissions intensity metric, one portfolio alignment metric and one additional climate metric.

Software is one way to produce them; the duty is on the trustees.

Not yet for ratings.

SI 2025/1349, made on 15 December 2025, brings providing an ESG rating likely to influence an investment decision within the FCA’s perimeter, with authorisation required from 29 June 2028.

The FCA consulted on its rules in CP25/34, which closed on 31 March 2026.

The Order defines a rating as an assessment produced as an opinion, a score or both, using an established methodology and a defined ranking system.

No. This site has tested no products.

The page is built from PCAF’s standard, UK SRS S2, the FCA Handbook and policy statements, SFDR and the pension regulations, each cited to its provision, and the vendor directory quotes only what each vendor publishes about itself.