Guidance for Financed Emissions Accounting – Tenant-Owner Associations and Tenant-Owned Apartments

The emissions are reported in three categories – scope 1, 2 and 3 emissions – where scope 1 is direct emissions from owned or controlled sources, scope 2 is indirect emissions in the form of, for example, purchased energy and scope 3 is the emissions from the customers' operations (the value chain).

Financed emissions are the emissions generated in the operations of the customers that the bank finances (scope 3). Accounting financed emissions is an important part of assessing climate-related risks and opportunities, setting goals and sub-goals for the transition towards the climate goal of net-zero emissions and driving the transition in interaction with customers and thereby contributing to the climate transition in society. 

For accounting financed emissions, there is a voluntary global standard from the Partnership for Carbon Accounting Financials (PCAF). However, the standard from PCAF does not deal with the asset type of Tenant-Owner Associations and Tenant-Owned Apartments, which are a common form of housing in Sweden and which banks in Sweden finance to a significant extent.

Against this background, a working group within the Swedish Bankers´ Association has developed a common method for financed emissions accounting for Tenant-Owner Associations and Tenant-Owned Apartments. The current guidance is based on PCAF and adapted to Swedish conditions and will be reviewed on a regular basis.