Facilitated Emissions

Facilitated emissions refer to GHG emissions associated with activities performed by financial institutions when arranging finance, such as securitization and advisory services. Facilitated emissions and financed emissions differ from each other in that facilitated emissions are off-balance sheet (e.g., insurance underwriting, capital markets underwriting, brokerage, mandated asset management), whereas financed emissions are derived from on-balance sheet exposure (representing direct financing). Generally, facilitated emissions activities are fee-generating and do not provide direct financing.