Guidance for the Calculation of Financed Emissions from Real Estate
Banks calculate their own and their customers’ greenhouse gas emissions as part of their climate efforts.
In early 2024, Finance Sweden published an initial guidance for banks on calculating financed emissions from tenant‑owner associations (bostadsrättsföreningar) and tenant‑owned apartments (bostadsrätter) in Sweden.
The guidance has now been expanded and also covers multi‑family buildings, single‑family houses, and commercial properties. It is based on the international standard developed by the Partnership for Carbon Accounting Financials (PCAF).
The purpose of the guidance is to provide a consistent and transparent method for calculating financed emissions from real estate in Sweden. By applying a consistent methodology, banks enhance the comparability of emission data across institutions.
The guidance is administered by Finance Sweden, is available on the association’s public website, and will be reviewed regularly.
According to the GHG Protocol, greenhouse gas emissions are reported in three categories – Scope 1, 2, and 3 – where Scope 1 includes direct emissions from the organization’s own operations, Scope 2 includes indirect emissions such as purchased electricity, and Scope 3 includes emissions from customers’ operations (the value chain). The emissions generated in the activities of customers that are financed by the bank are referred to as financed emissions (Scope 3).
.