# How does a mutual fund calculate the carbon footprint of its portfolio?

Canonical: https://senseible.earth/answers/mutual-fund-portfolio-carbon-footprint-pcaf

Under PCAF, each holding's emissions are attributed by the fund's share: the value held divided by the company's enterprise value including cash. Add the attributed Scope 1 and 2 across holdings, and show a data quality score, since many Indian companies still estimate.

## The formula

Attributed emissions = value held / EVIC x company emissions. Sum across listed equity and corporate bonds.

## For investee companies

Funds ask for reported emissions because estimates score lower. Bill-backed Scope 1 and 2 improve the fund's data quality score.

## One holding

- Held Rs 50 crore of a company with EVIC Rs 5,000 crore: 1%
- Company Scope 1 and 2: 80,000 t; attributed 800 t

## What Senseible does here

Senseible builds a bill-backed emissions record with the source on every line, the evidence a lender's credit team can check.

- [PCAF data quality for MSMEs](https://senseible.earth/answers/pcaf-data-quality-score-for-msme-borrowers)
- [Why EU funds ask for PAI data](https://senseible.earth/answers/why-eu-fund-asks-for-sfdr-pai-data)

Sources: [PCAF, Global GHG Accounting and Reporting Standard for the Financial Industry](https://carbonaccountingfinancials.com), [GHG Protocol Corporate Standard](https://ghgprotocol.org/corporate-standard)

Last reviewed 2026-10-22.