What are financed emissions? Are they part of Scope 3 emissions?

Financed emissions are indirect, downstream emissions resulting from a reporting entity’s loans and investments. These emissions fall under an entity’s Scope 3 Category 15 (Investments), as per the guidelines of the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard. However, they are generated by the activities that fall under Scope 1, 2, and 3 emissions for the entities that the reporting entity invests in or lends to. On the NZDPU, ‘Financed Emissions’ are displayed in their own tab in addition to the main Scope 3 emissions tab, which contains data on the rest of the Scope 3 emissions categories. This design choice is intended to make it easier for NZDPU users to find the financed emissions data, where available.