As the first and ONLY accredited PCAF partner in the MENA region, Olive Gaea is pleased to share the latest update from the Partnership for Carbon Accounting Financials (PCAF) to its Global GHG Accounting and Reporting Standard for the Financial Industry.
This update marks a major step forward in helping banks, asset managers, insurers, and other financial institutions measure, manage, and disclose greenhouse gas (GHG) emissions linked to their portfolios and financial activities — with greater accuracy, consistency, and transparency than ever before.
Developed by over 100 experts from the global PCAF signatory network, the revised framework reflects growing demand for harmonised, robust, and decision-ready climate data across financial markets
Why the PCAF Update Matters for Financial Institutions
Financial institutions manage highly diverse portfolios that include:
- Corporate and retail loans
- Listed and private equity investments
- Bonds and securitised assets
- Insurance and reinsurance contracts
- Project finance and structured products
Until now, measuring the Scope 3 Category 15 emissions (financed and insurance-associated emissions) across these varied financial instruments has been complex and inconsistent.
The updated PCAF Standard significantly expands the ability of financial institutions to measure and report emissions related to financial activities, helping institutions achieve:
- More complete portfolio coverage
- Greater data consistency across asset classes
- Stronger alignment with global reporting frameworks
Improved readiness for regulatory and investor scrutiny
This update supports more informed decision-making on climate risk, capital allocation, and decarbonisation strategies.
What’s New in the Latest PCAF Update?
The revised standard introduces new methodologies and supplemental guidance across both financed and insurance-associated emissions.
1. New Financed Emissions Methodologies (Part A)
PCAF has introduced four new financed emissions methodologies to cover a wider range of financial products:
- Use of proceeds structures
- Securitisations and structured products
- Sub-sovereign debt
- Optional reporting on undrawn loan commitments (aligned with IFRS S1 & S2)
These additions close current gaps and allow institutions to account for a broader scope of financed emissions across complex portfolios.
2. Enhanced Insurance-Associated Emissions Methodologies (Part C)
Two new methodologies now support the calculation of emissions linked to:
- Treaty reinsurance
- Project insurance
This is critical for insurers in the MENA region who are increasingly required to disclose climate risk exposure and future impact.
3. New Guidance on Financed Avoided Emissions
The update introduces a dedicated guidance document that provides:
- Clear rules for separately reporting financed avoided emissions
- Guardrails to prevent double-counting or overclaiming climate impact
- Best practices for transparent disclosure
This is a major step in helping institutions credibly communicate how their financing contributes to low-carbon solutions.
4. Introduction of Forward-Looking Metrics
PCAF has added forward-looking emission metrics that allow financial institutions to:
- Assess future climate impact of portfolios
- Support scenario analysis and transition planning
- Strengthen alignment with net-zero and climate strategies
This links emissions accounting directly to long-term strategic climate planning.
What This Means for MENA Banks, Insurers, and Asset Managers
In the MENA region, climate disclosure and sustainable finance are gaining rapid momentum, driven by:
- National Net Zero commitments
- Central bank and regulator guidance
- IPO and financing requirements
- Growing investor pressure
- regional developments linked to COP processes
The updated PCAF framework enables financial institutions to:
- Strengthen Scope 3 reporting capabilities
- Improve portfolio emissions transparency
- Align with global standards such as ISSB, IFRS S1/S2, TCFD and CSRD
- Build credible data foundations for transition planning
However, PCAF recognises that adoption takes time. Institutions are encouraged to:
- Set realistic implementation timelines
- Disclose clearly which portfolio segments are included/excluded
- Provide justification for any data gaps
This transparent approach ensures comparability while allowing flexibility.
How Olive Gaea Supports PCAF-Aligned Implementation in MENA
Through its AI-powered ZERO Platform and Finance Emissions Module, Olive Gaea empowers financial institutions in the MENA region to operationalise the PCAF Standard by enabling:
- Automated mapping of financial products to PCAF methodologies
- Accurate calculation of financed and insurance-associated emissions
- Integrated data quality scoring and audit trail
- Reporting-ready outputs aligned with regulatory requirements
- Actionable insights for decarbonisation strategy and risk planning
As a PCAF-accredited partner, Olive Gaea ensures institutions don’t just understand the standard — they implement it correctly, efficiently, and at scale.
The Role of PCAF in Global Climate Accountability
With 680+ financial institutions worldwide already participating, PCAF continues to lead as the global standard-setter for GHG accounting in the financial sector, enabling institutions to work toward complete, transparent, and consistent emissions reporting
This update strengthens the global financial system’s ability to measure the carbon impact of capital flows — a critical step toward meeting international climate goals.
Ready to Align with the Updated PCAF Standard?
If your institution is preparing to implement or update its financed emissions reporting under the revised PCAF framework, now is the right time to act.
Let’s strengthen climate transparency across the MENA financial ecosystem — together.
FAQ Questions
What is PCAF and why is it important for financial institutions in MENA?
PCAF (Partnership for Carbon Accounting Financials) is a globally recognised standard for measuring and disclosing greenhouse gas emissions linked to financial activities. For institutions in MENA, it provides a consistent, transparent, and credible framework to measure financed and insurance-associated emissions, strengthen climate disclosure, and align with evolving regional and international regulatory expectations.
What has changed in the latest PCAF GHG Accounting and Reporting Standard?
The latest PCAF update introduces new and enhanced methodologies for financed emissions and insurance-associated emissions. It includes guidance on financed avoided emissions, forward-looking metrics, additional asset class coverage, and optional reporting for undrawn loan commitments—helping institutions measure emissions more comprehensively and consistently across their portfolios.
Who is the PCAF accredited partner in the MENA region?
Olive Gaea is the first and only PCAF-accredited partner in the MENA region, supporting financial institutions with expert guidance, technology, and implementation tools to adopt the updated PCAF standard effectively and at scale.
How can banks in the Middle East calculate financed emissions?
Banks can calculate financed emissions by applying PCAF methodologies to their loan and investment portfolios. Olive Gaea’s AI-powered ZERO Platform and Finance Emissions Module automate this process, improving data accuracy, regulatory alignment, and audit readiness while providing actionable climate insights.
