• PwC will support financial institutions using the PCAF Standard to measure and disclose emissions linked to lending and investment activities.
• The partnership covers emissions baselining, data governance, automation, target-setting, disclosure readiness and independent assurance.
• Demand is rising as IFRS S2 and Europe’s CSRD push climate data deeper into financial reporting, governance and risk management.

The Partnership for Carbon Accounting Financials (PCAF) has named PwC as its newest Global Accredited Partner. The agreement expands support for financial institutions facing tougher expectations around financed emissions accounting.

PwC will work with banks, asset managers and other financial institutions using the PCAF Standard. Its role will focus on measuring and disclosing greenhouse gas emissions associated with financial activities.

The partnership comes as institutions move beyond initial emissions calculations. Many now need stronger governance, automated processes and more reliable data controls. Climate disclosures must also be capable of withstanding greater investor and assurance scrutiny.

Financed emissions move deeper into reporting systems

For many financial institutions, financed emissions account for a significant share of their overall climate footprint. These emissions sit within lending and investment portfolios rather than direct operations.

That makes portfolio-level data increasingly important. Institutions need credible information for external disclosure, but also for risk assessment, target-setting and capital allocation.

Reporting requirements are adding pressure. The International Sustainability Standards Board’s IFRS S2 standard has raised expectations for climate-related financial disclosures. In Europe, the Corporate Sustainability Reporting Directive (CSRD) has also expanded sustainability reporting obligations for companies within its scope.

Financial institutions therefore face growing demands to improve the consistency of emissions accounting. They must also connect climate information with wider governance and risk processes.

PwC said its PCAF-related services will cover emissions baselining and calculation engine development. It will also support automation, data governance and AI-enabled data management. Other areas include target-setting, disclosure readiness and independent assurance.

“PwC’s role as a PCAF Global Accredited Partner reinforces our commitment to helping financial institutions measure and manage emissions associated with financial activities in a credible, consistent, and decision-useful manner,” said Lynne Baber, Global Sustainability Leader at PwC.

Baber said the firm will help clients establish reliable data inputs and turn analysis into actionable insights. Those insights can inform portfolio management, climate strategy and operating model decisions.

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Governance and assurance take a larger role

The partnership reflects the changing demands placed on carbon accounting systems. Financial institutions increasingly need repeatable calculations backed by clear methodologies and internal controls.

For boards and executive teams, this changes the role of emissions information. Climate data is becoming more closely connected with portfolio management, financial reporting and strategic decision-making.

“Financial institutions are increasingly looking to strengthen the quality, consistency, and transparency of emissions accounting across their portfolios,” said Bart van Lunteren, Accredited Partner Lead at PCAF.

He said PwC’s experience in measurement, data governance, reporting and assurance can help institutions implement the PCAF Standard and improve their disclosure practices.

PCAF’s Accredited Partner Program is designed for third-party companies that support institutions committed to using its accounting methodology. Participants include consultancies, data providers and software firms.

The program aims to improve the consistency, comparability and quality of disclosures covering emissions associated with financial activities.

What financial leaders should take away

For financial institutions, the challenge is moving beyond the calculation of financed emissions. Executives must determine whether those calculations are governed well enough for regulatory reporting, investor scrutiny and assurance.

That puts greater weight on data quality, methodological consistency and internal accountability. It also increases the need to integrate carbon accounting with existing risk and financial reporting infrastructure.

For investors and regulators, stronger financed emissions data could improve comparisons across portfolios and institutions. Corporate counterparties may also face greater scrutiny as financial firms improve their portfolio-level climate data.

PwC’s addition to PCAF’s partner network comes as financed emissions accounting becomes more embedded in core financial systems. Institutions with credible governance and assurance-ready data will be better equipped for increasingly demanding climate disclosure regimes.