As financial institutions face increasing regulatory pressures and stakeholder expectations to measure, disclose, and reduce their financed emissions, the need for accurate, scalable, and cost-effective carbon reporting solutions has become critical. TD Bank Group worked with Climative to test a novel approach (described in a white paper) for improving financed emissions data quality in residential portfolios.
The pilot demonstrated how Climative’s Automated Climate Model (ACMTM) empowers financial institutions to achieve a PCAF Data Quality Score (DQS) of 3 or higher for reporting carbon emissions on their financed emissions portfolio at scale. Climative is now a Regional Accredited Partner of PCAF.
Good to Know:
PCAF is the Partnership for Carbon Accounting Financials, the framework that financial institutions use to measure and disclose financed emissions in accordance with OSFI Guideline B-15.
Data Quality Score (DQS) ranges from 1 (highest data quality) to 5 (lowest data quality).
The white paper discusses the challenges financial institutions are facing in measuring and reporting their financed emissions footprint and setting carbon reduction targets, including:
Climative’s ACM leverages machine learning algorithms, historical energy audit results, property-level building characteristics data, weather data, and region-specific emission factors to develop a robust framework for measuring and tracking financed emissions. This approach not only addresses key challenges in data quality, scalability, and regulatory compliance but also provides actionable climate risk and carbon emission reduction roadmaps for financial institutions and individual homeowners.
Key findings from the pilot project evaluating Climative’s carbon assessment framework include:
By adopting the ACMTM and partnering with Climative, financial institutions can enhance the data quality of their emissions reporting, set more meaningful decarbonization targets, and craft impactful strategies for addressing climate-related risks and opportunities in their mortgage portfolios.
Our team is ready to dive deeper into these findings and their strategic value. Access the complete white paper below, or book a consultation with the study’s author and Tianshu Huang, our Director of Data Science.
Tian is a dedicated and creative statistical modeler who leads the development of Climative’s data strategy and machine learning algorithms. She believes that ethical and thoughtful use of AI will help us achieve climate goals while creating equal opportunity for all.
Climative provides a collaborative AI-assisted data platform for organizations to enable personalized advice and offers to building owners, taking the guesswork out of building upgrades and transforming the low carbon economy.
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