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Definition

EVIC for financed emissions

EVIC for financed emissions adds a listed company's year-end ordinary and preferred share market capitalisations, total debt and non-controlling interests without subtracting cash; PCAF uses it as a listed-company denominator in several attribution formulas.

What is EVIC for financed emissions?

Enterprise value including cash (EVIC) is a listed company's year-end value used as the denominator in some portfolio emissions calculations. The Partnership for Carbon Accounting Financials (PCAF) standard uses it when allocating emissions from listed equity and corporate bonds issued by listed companies; bonds issued by private companies use total equity plus debt instead. EVIC is not the company's emissions total.

Why does EVIC matter to you?

An investor may ask your company for the financial inputs behind EVIC alongside Scope 1, Scope 2 and relevant Scope 3 emissions. A missing debt balance, non-controlling interest or valuation date changes the attribution factor. EU climate benchmarks also use emissions per EUR million of EVIC.

How is EVIC calculated?

Add fiscal year-end ordinary-share market capitalisation, preferred-share market capitalisation, the book value of total debt and non-controlling interests. Do not subtract cash or cash equivalents. Under PCAF, divide the year-end value of a listed holding by EVIC, then multiply that percentage by the company's emissions.

What mistakes should you avoid?

  • Subtracting cash as you would in a conventional enterprise-value calculation.
  • Mixing financial values from different dates or currencies.
  • Using EVIC for a private company when the PCAF method calls for total equity plus debt.
  • Calling a valuation-driven fall in attributed emissions an operational emissions reduction.

Is EVIC the same as conventional enterprise value?

No. Conventional enterprise value usually deducts cash. EVIC keeps cash in the company value by making no deduction, which avoids a negative denominator and helps prevent equity and debt investors together being allocated more than 100% of company emissions.

What should you send when an investor asks for EVIC?

Send the calculation date and currency, ordinary and preferred share counts and prices, total debt, non-controlling interests and source financial statements. Keep the emissions year and holding value used in the attribution calculation with the same file.

Example

Suppose a listed furniture maker in Spain has EUR 420 million of ordinary-share market capitalisation, EUR 20 million of preferred-share market capitalisation, EUR 150 million of total debt and EUR 10 million of non-controlling interests at year end. Its EVIC is EUR 600 million: 420 + 20 + 150 + 10. Its EUR 40 million cash balance is not subtracted.

An investor's shares are worth EUR 6 million on the same date. The PCAF attribution factor is 6 / 600 = 1%. If the furniture maker reports 48,000 tCO2e of combined Scope 1 and Scope 2 emissions for the aligned period, the investor attributes 480 tCO2e: 48,000 x 1%. This is a hypothetical financial attribution example, so no emission factor is used.

Where it comes up

PCAF listed-equity and corporate-bond EVIC definition and attribution formulaPCAF Financed Emissions Standard, third edition, Chapter 5.1, pp. 41-44Official sourceEU climate-benchmark GHG intensity, EVIC definition and annual EVIC adjustmentCommission Delegated Regulation (EU) 2020/1818, Article 1(c)-(d) and Article 7(3), consolidated 19 January 2026Official source

Related terms

Financed emissions

Financed emissions are the share of a borrower's or investee's gross GHG emissions allocated to a bank, fund or asset owner through the loans and investments it holds.

PCAF Standard

The PCAF Standard assigns financial activities to methods for measuring and disclosing emissions associated with loans, investments, capital-markets facilitation, and insurance underwriting.

Portfolio carbon footprint

A portfolio carbon footprint sums the GHG emissions attributed to investments and usually divides that total by portfolio value to report tonnes of carbon dioxide equivalent per million invested.

Weighted average carbon intensity (WACI)

Weighted average carbon intensity (WACI) measures a portfolio's exposure to carbon-intensive companies by weighting each holding's Scope 1 and Scope 2 emissions per million of revenue by its share of portfolio value.

PCAF data quality score

A PCAF data quality score ranks the inputs behind financed-emissions estimates from 1, the highest quality, to 5, the lowest, based on whether data are verified, reported, physically measured or economically estimated.

Sources

Last verified 2026-08-21

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EVIC for financed emissions Definition | Keslio