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All About Financed Emissions

23.10.25

Financed emissions refer to the greenhouse gas (GHG) emissions generated by the activities financed by financial institutions. These emissions are linked to lending, investments, and services provided by financial institutions that enable carbon-emitting activities such as manufacturing, energy production, transport, and infrastructure development (StepChange, 2024). These emissions are caused by indirect activities occurring outside the operational boundaries of a financial institution and are classified as Scope 3 Category 15 emissions under the GHG Protocol’s Corporate Value Chains (Scope 3) Standards (GHG Protocol, 2011).

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