Financed Emissions

“Financed emissions” refer to the greenhouse gas emissions directly or indirectly associated with the financial activities and investments of individuals, businesses, or institutions. It reflects the carbon footprint of economic entities’ funding and capital allocation decisions. These emissions can arise from various sources, including investments in fossil fuel-related industries, infrastructure projects, or companies with significant carbon-intensive operations. Understanding financed emissions is crucial for assessing financial portfolios’ environmental impact and aligning investment strategies with climate goals. Efforts to measure and disclose financed emissions are part of broader initiatives to promote sustainable and responsible investing, encouraging the financial sector to contribute to global efforts in addressing climate change.