Financed Emissions Development Consulting
Jerry Jackson Provides Consulting Services to Assist Financial Firms Develop Accurate Financed Scope 3 Emissions
Data Development and Reporting Strategies
Click Here to See Three Notes Describing Challenges Related to Calculating Annualand Year-to-Year Scope 3 Emissions Report Data
Summary. Financial institutions are facing increasing pressure to report Scope 3 financed emissions – that is, emissions of their mortgage and commercial real estate (CRE) customers. A soon-to-be issued SEC rule will likely require mid-to-large financial institutions to report these data.
Since these emissions can account for 90 – 95 percent of all financial institution emissions, a reliable calculation of current emissions is important. More critical are the year-to-year emissions intensity estimates (e.g., emissions/mortgagor) presented for investors to evaluate emissions improvements over time. Inaccurate emissions calculations and emissions intensity statistics can sabotage a financial institution’s public image by reflecting increased emissions intensities when the opposite is true. Or, in a worst-case scenario, result in an external audit showing that reported emissions intensities are overestimating emissions improvements.
Avoid working through the 400+ pages of the SEC’s proposed rule documentation and 150+ page PCAF recommendations (Partnership for Carbon Accounting Financials - an international organization of financial institutions that provides a guide to Scope 3 calculation methodologies sanctioned by the SEC) to develop a strategy that provides the most accurate calculation of your financial firm's Scope 3 emissions including strategies to protect against biases emissions intensity calculations and reputational risk. See our most recent white paper on these emissions intensity calculation risks here
My Consulting Experience. I have consulted with more than 100 firms concerning energy use estimation and related analysis including state and federal government agencies, energy utilities and private companies. I have provided testimony in dozens of utility-related regularoty proceedings and have provided energy use analysis supporting energy efficiency regulations for state agencies and the US Department of Energy. See a partial list of clients here and more of my background here
As the author of the widely used 7+ million record MAISY Utility Customer Energy Use Databases, I have extensive experience in "big data analysis " and development and validation of huge data sets
More recently, my interest has focused on providing consulting support to individual organizations attempting to quantify and report energy use and CO2e emissions. As indicated in the paper referenced above, a variety of quantitative issues complicate annual and especially year to year comparisons. I help guide my consulting clients through these difficult issues to provide a long term data development and quantitative reporting strategy that accurately reflects emissions improvements and avoids reputational risk associated with inaccurate carbon emissions reporting.
Financed Scope 3 emissions can be developed with a variety of strategies; however, following the PCAF recommendation of continuously improving data input can result in emissions intensity measures (e.g., CO2e/mortgagor) that show year-to-year changes that can grossly over or under estimate financed emissions improvements. Financial firms need to carefully consider and develop strategies that eliminate this risk.
I am happy to discuss, at no cost, your emissions reporting support needs and to provide an assessment of the most cost-effective approach to meeting those need.
Jerry Jackson, President