# PCAF Methodology | Peercarbon

**URL:** [https://peercarbon.earth/methods](https://peercarbon.earth/methods)

> **Description:** Calculated. Controlled. Defended. PCAF-aligned methodology for financed emissions across loan and investment portfolios.

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Methodology Locked 

#  Calculated.  
Controlled.  
Defensible.

Emissions associated with financial activities are a liability, not an estimate. We implement PCAF's Global GHG Accounting Standard across ten asset classes, version-locked and auditable at the transaction level. 

[ Trace the Audit Trail  ](/standards)

![Methodology Locked Schematic](/_astro/methods_hero_lock._PRnYybe_1o4IJG.png)

Trace ID: 0x7F...3A 

The Engine

##  Logic, locked.  
Enforced.

Emissions Associated with Financial Activities = Attribution Factor × Borrower Emissions. We enforce PCAF's "follow the money" principle across all asset classes. 

![Logic Core Prism Schematic](/_astro/methods_logic_core.CGCtTwew_Z1tjIkD.png)

Transformation Active

System Status: Enforced at Compute Time

[ Download Asset Class Primer (PDF) ](/downloads/peercarbon-asset-classes-intro.pdf)

How we map asset types to PCAF methodologies. 

PCAF §4.1

##  Quantified Uncertainty. 

We measure imperfection precisely using PCAF's Data Quality Score (1-5). Don't wait for perfect data. It doesn't exist.

Highest Precision (DQ 1) Lowest Precision (DQ 5)

Slide to Interact 

DQ 1

DQ 2

DQ 3

DQ 4

DQ 5

Verified

#### Verified Emissions

Audited company data, verified activity records, assured reporting. This is the gold standard.

### Why Source Matters

Most platforms calculate a single number and hide the assumptions. Peercarbon preserves the lineage of every data point, so you know exactly what percentage of your portfolio comes from hard facts (DQ 1-2) versus modeled estimates (DQ 4-5). 

#### The Weighted Score (WDQS)

Your WDQS is a baseline, not a confession. We track it across periods so improvement is visible to regulators. 

Target: WDQS ≤ 3.0 

Defensibility

##  Spreadsheets calculate.  
They do not defend.

### The "Analyst Left" Problem

Methodology lives in heads, not code. When staff leaves, the logic leaves with them.

Risk: Audit Failure

### The "Ghost Version" Problem

"Which version of the factor table did we use for Q1?" No one knows.

Risk: Compliance Breach

![Immutable Security Lock](/_astro/methods_immutable_hash.BuprZSrr_2cXVgb.png)

### The Peercarbon Standard

Every compute binds inputs + logic to a SHA-256 hash. Immutable. Forever.

0x7F2A...9B3C // Verified

## Lexicon

####  Emissions Associated with Financial Activities 

Scope 3, Category 15 emissions from loans and investments. 

####  Facilitated Emissions 

Emissions from capital market and underwriting activities. 

####  Attribution Factor 

Outstanding exposure ÷ total equity + debt of borrower. 

####  Data Quality Score 

PCAF 1-5 scale. 1=audited actuals, 5=sector estimates. 

####  EVIC 

Enterprise Value Including Cash. Denominator for attribution. 

####  Emission Factor 

Coefficient converting activity data to tCO2e. 

####  Asset Class 

PCAF classification determining calculation methodology. 

####  GHG Protocol 

Foundation standard for corporate emissions accounting. 

##  Calculated once.  
Bound forever.  
Verified. 

THE OUTCOME 

Methodology is infrastructure. Build your climate strategy on a logic trace you can show the board. 

[ See Your Evidence Pack  ](/contact)

We walk through your portfolio structure. You decide what happens next.

[ See Platform Architecture → ](/saastain)
