Disclosure focus
This disclosure is asking the organisation to explain how much of its financed emissions it has covered in its reporting, and to make clear the basis for that coverage. In practice, the focus is on whether the reported figure reflects the full relevant financing activity or only a selected part of it, so readers can understand what is included and what is left out.
The practical point is comparability and completeness. An organisation should be clear about the scope of the financed emissions information it presents, for example whether it covers all relevant operations and portfolios or only certain business lines, entities, or flagship activities. The aim is to avoid giving a headline number without showing how representative it is of the organisation’s overall financed emissions exposure.
This LRA educational guidance supports disclosure preparation. For the exact requirements, always refer to the official IFRS source.
Before you start
A quick mental checklist before you prepare this disclosure — tick each as you settle it.
Preparation
Key datapoints to prepare
＋ Show s2-29-a-vi-2 sub-elements (LRA working checklist)
Break the portfolio down by asset class or industry.
State the total assets under management or gross exposure used for the disclosure.
List any exclusions applied and explain what was left out.
Show financed emissions separately for each emissions scope used.
Give the percentage of the portfolio or exposure that is included in the calculation.
Describe the method used and the basis for allocating amounts.
How to prepare it
1Set the boundary first: decide which holdings, portfolios, or activities are in scope for this disclosure, and make that scope consistent across every figure and narrative you prepare.
2Define the classification basis you will use, including how you group exposures by asset class or sector, how you treat financed emissions by emissions scope, and what allocation approach sits behind the numbers.
3Gather the source records that support each required item: the exposure or assets-under-management figure, the percentage included, the breakdown by asset class or industry, the emissions-by-scope information, and the notes on exclusions and methodology.
4Build the disclosure outputs from those records, making sure the numeric amounts and the written explanations line up and that the presentation is complete for each required element.
5Record any exclusions and any changes in approach clearly, so a reviewer can see what was left out, why it was left out, and whether the basis used differs from prior reporting or internal reporting packs.
6Check the draft against the official source and your internal evidence pack, confirming that the scope, definitions, calculations, and wording all match the underlying records before sign-off.
Request the data
Request the portfolio data from Investments
Translate the disclosure into an internal business question — then adapt it to your organisation's own language.
What portfolio holdings and calculation basis should we use to prepare the financed emissions disclosure for the reporting period?
Use your organisation’s own portfolio and exposure terms first, then map them to the disclosure wording. For example, ask for the holdings book, mandate book, or exposure file if that is how the team works. Keep the request in the language the owner already uses, and check the source before sign-off.
Weak request
Please provide the financed emissions data required for the disclosure, including all relevant methodology and exclusions.
Why it fails: It uses framework language instead of the team’s own portfolio terms, so the owner may not know which file or calculation run is being asked for. It also does not specify the period, source system, exposure basis, or the exact fields needed to evidence the working paper.
Better request
Please send the month-end portfolio exposure file for [reporting period] used in the climate pack, including the holdings in scope, the exposure measure for each line, the asset and industry labels, any exclusions and reasons, the emissions scope split, the share covered, and the allocation method. Include the source file name, extract date, version, and reviewer details. Use your own internal terms and we will map them for the disclosure pack.
Industry examples
Draft your disclosure
Notes that turn data into a disclosure
LRA training templates — adapt them to your organisation, and check the official source before sign-off.
Method note
Set out the basis used to assign emissions to each holding, including how the portfolio was grouped, how exposure or assets under management were measured, which parts were left out, and what share of the portfolio was actually covered.
Context note
Explain what the figures represent in practice: the size of the portfolio segments, the emissions linked to them, the proportion included in the analysis, and how the results should be read alongside the chosen allocation approach.
Fluctuation statement
If the numbers move materially, point to the main drivers such as changes in portfolio mix, coverage, exclusions, or the allocation approach used, and note whether the shift reflects a real change in the portfolio or a change in the data set.
Content index entry
s2-29-a-vi-2 Financed emissions — [location / page] / [notes]
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Preparation tools & forms
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Assurance readiness
For each claim, check the evidence
Evidence pack to prepare
Common reporting gaps
A percentage is stated without the underlying counts (numerator and denominator).The denominator — what the figure is a share of — is not explained.Partial scope is reported as if it were complete coverage.One-off activities are counted as if they were ongoing programmes.Boundary or period changes that move the figure are not flagged.Exclusions from the reported scope are not listed or explained.
Common gaps
Mistakes to avoid when collecting the data
Wrong owner
Chasing the sustainability team alone leaves the figures with the wrong business owner, when the data actually sits with finance, risk, portfolio, or product teams.
Framework words instead of business terms
Asking for the data in disclosure language confuses colleagues, so they cannot match it to the labels they use in their own systems and reports.
No clear boundary
Pulling numbers without first fixing which holdings, products, or books are in scope leads to a mixed dataset that cannot be defended later.
Wrong reporting period
Using a different cut-off date or time basis from the rest of the pack makes the figures inconsistent with the period being reported.
Mixed counting basis
Combining values built on different bases, such as one set on exposure and another on assets under management, produces totals that do not compare like for like.
Source labels lost
Copying data into a new file without keeping the original source names and tags breaks the audit trail back to the underlying record.
Separate populations merged
Putting together groups that should stay apart, such as different asset classes or industry buckets, hides the breakdown needed for review.
Missing evidence trail
Saving the numbers without the supporting file details, version history, and sign-off record leaves no proof of where the data came from or who checked it.
Where judgement is often needed
What sits inside the reporting perimeter after a deal closes
Set a clear cut-off for bought or sold businesses, explain whether the figures reflect the opening or closing group, and note any restatements or one-off exclusions caused by the change.
Different country labels for the same activity
Where local classifications do not line up, map them to one internal grouping, explain the mapping rule used, and disclose any material cases that were grouped differently.
Borderline counterparties and partial coverage
State how you treated exposures that are only partly in scope, including mixed-purpose arrangements or small holdings near the threshold, and explain the rule used to include or leave them out.
Choosing the measurement date or period basis
If the portfolio moved during the year, explain whether the numbers are based on a point-in-time view, an average, or another internal basis, and keep that choice consistent across the table.
Using estimates where direct figures are missing
Say which lines rely on modelled or proxy inputs rather than source data, describe the fallback approach, and identify any material assumptions that could change the result.
Allocating emissions across shared financing
When one exposure supports more than one activity or borrower, explain the split rule used to apportion the amount and the emissions, and show the same basis across similar cases.
Rounding and small differences in totals
Choose one rounding approach for the whole disclosure, apply it consistently, and explain any small gaps between subtotals and the total caused by rounding.
Protecting client confidentiality through grouping
If individual positions cannot be shown, combine them into a broader band or segment, explain the aggregation rule, and make clear how much of the portfolio is still covered.
Examples
Illustrative examples
Synthetic, written by LRA — not from a company report, not text from any standard.
Illustrative (synthetic) example — asset management
We have shown the part of our portfolio we include in this calculation, split by asset type and industry where relevant. For each slice, we show the amount covered, the emissions we attribute to it by scope, the share included, the exclusions, and the allocation approach used.
Synthetic illustration only. This example shows how a firm might present a covered portfolio view with emissions split by scope, alongside the share of the portfolio used and the basis for allocation.
Illustrative (synthetic) example — commercial banking
We have set out the lending and project-finance book we used, grouped by borrower sector. For each group, we show the balance covered, the emissions we assign across scopes, the portion included, the amounts left out, and the method used to spread emissions across our exposure.
Synthetic illustration only. This example shows how a lender might present financed emissions by sector, with the covered balance, excluded balance, included share, and the allocation basis used to attribute emissions.
How companies report S2-29-a-vi-2 in practice
Real reports where this topic is disclosed. These are report practice, not exact disclosure templates to copy.
The Shanghai Commercial & Savings Bank, Ltd.
Banks / Diverse Financials / Insurance · Taiwan · 2024
The Shanghai Commercial & Savings Bank, Ltd.'s 2024 Sustainability Report provides a clear disclosure of gross financed emissions by scope, including Scope 1, Scope 2, and Scope 3, on page 170. The report also includes data on greenhouse gas emissions by asset class for the years 2021 to 2024, as shown on page 104, and references the methodology used to calculate financed emissions on page 170. However, the report lacks clear information on asset class industry breakdown, exclusions, included percentage, and the methodology allocation basis, with some related context on assets under management but no definitive figures (p.78).
TS Financial Holding Co., Ltd.
Banks / Diverse Financials / Insurance · Taiwan · 2024
TS Financial Holding Co., Ltd.'s 2024 CSR Report provides covered data on financed emissions by scope, including Scope 1, Scope 2, and Scope 3 emissions, reported on page 174 within the Net Zero Strategy and Implementation section. The report also includes a reported value for gross exposure used in the financed emissions calculation on the same page. However, the report does not clearly disclose an asset class industry breakdown, exclusions, the included percentage of assets, or the methodology for allocation basis, with some related context found but not definitive disclosures (p.174).
E.SUN Financial Holding Company, Ltd.
Banks / Diverse Financials / Insurance · Taiwan · 2024
E.SUN Financial Holding Company’s 2024 Sustainability Report provides data on financed emissions by asset class, including total emissions and carbon footprint metrics on page 178, showing figures such as total financed emissions of 3,951,725 tCO2e and related intensity measures. The report references efforts to compile and disclose financed emissions and data quality scores by asset class on page 192, though the exact methodology for allocation and the percentage of gross exposure included are not clearly disclosed. Notably, the report lacks clear information on asset class industry breakdown, exclusions, and the included percentage of assets, with some related context on gross exposure and financed emissions by scope remaining unclear (pp. 188, 192).
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Scenarios to work through
A lender has a mixed portfolio: some loans are fully in scope for the financed-emissions calculation, while a small legacy book is left out because the data needed to allocate emissions is not available. The draft note also splits the included book by asset class and industry, and shows the exposure amount used for each slice.
QHow should the team present the excluded book and the included share so the reader can see what was covered and what was left out?
Reveal model answer →Hide answer ↑State the excluded part clearly, explain why it was left out, and show the share of the portfolio that was included in the calculation. The included percentage should match the portion actually used, and the breakdown by asset class or industry should align with the exposure base used for the calculation.
Why this matters · Be explicit about scope, exclusions and coverage so users can judge how complete the figure is.
An asset manager reports financed emissions for two portfolios. One is measured using assets under management, the other using gross exposure, because the underlying products are structured differently. The preparer is unsure whether both bases can sit in the same note.
QWhat should the preparer check before combining these figures in one disclosure?
Reveal model answer →Hide answer ↑Use a clear allocation basis for each portfolio and make sure the exposure measure shown is the one actually used in that calculation. If the portfolios are not measured on the same base, explain the difference rather than blending them into a single undifferentiated number.
Why this matters · The exposure basis and allocation method must be understandable and tied to the way each figure was built.
A bank has calculated financed emissions for lending and investment activities, but the emissions profile is not the same across all greenhouse gas categories. For one book, only some scopes are available from counterparties; for another, all scopes are estimated. The draft note currently gives one total with no further detail.
QWhat level of breakdown should the preparer provide so the reader can see how the emissions were assembled?
Reveal model answer →Hide answer ↑Break the financed-emissions figure down by emissions scope and explain the method used to allocate emissions to the portfolio. If different books use different estimation approaches or data coverage, describe that clearly so the total is not presented as if every part was measured in the same way.
Why this matters · Show the emissions by scope and explain the allocation logic, especially where data quality differs across holdings.
A preparer has a draft table showing the included percentage as 92%, the exposure base as 500 million currency units, and financed emissions by scope. However, the narrative says the calculation covered 95% of the portfolio, and the exclusions note lists a segment that appears to be part of the 8% gap.
QWhat should the preparer do before sign-off?
Reveal model answer →Hide answer ↑Reconcile the numbers so the included percentage, the exposure base and the exclusions all tell the same story. If the calculation covered 92% of the portfolio, the narrative should not say 95%, and the excluded segment should be consistent with the portion left out of the calculation.
Why this matters · All parts of the disclosure must agree with each other; internal consistency is part of a credible financed-emissions note.
Framework references
Related framework references
How this disclosure maps across the major reporting frameworks.
Primary
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FAQ
Questions this page answers
For s2-29-a-vi-2, what data do I need to gather before I start drafting the disclosure?+−
The page says to prepare asset mix by sector, portfolio size measure, screening exclusions, emissions by scope, coverage percentage and the allocation method. Use the step-by-step preparation section to turn that list into a working data request.
How do I use the s2-29-a-vi-2 step-by-step preparation section in practice?+−
It is there to help you move from the disclosure topic to a draft by setting scope, collecting the listed datapoints and checking what evidence you have. The page also points you to the workbook and library card to support that process.
What should I ask the data owner for when preparing s2-29-a-vi-2?+−
Ask for the specific datapoints named on the page, plus the evidence needed to support them. In practice that means the underlying figures, the method used to allocate them, and any exclusions or coverage notes.
How do I decide the scope and methodology for s2-29-a-vi-2 using this page?+−
The page tells you to work from the listed datapoints and the allocation method, so scope and method should be set before drafting. Use the preparation section and workbook to keep the approach consistent and documented.
What evidence should I keep in the s2-29-a-vi-2 assurance pack?+−
The page includes an evidence pack with five items for assurance readiness, alongside five assurance claims to verify. Use those items to show how the figures were built and what supports them.
What are the five assurance claims on the s2-29-a-vi-2 page and how do I use them?+−
The page says there are five claims to verify, each with a claim, risk and evidence angle. Use them as a checklist to test whether your draft is supported and where the main assurance risks sit.
What are the common reporting gaps or mistakes for s2-29-a-vi-2?+−
The page lists common reporting gaps and mistakes to help you spot weak points before sign-off. Use that section as a pre-submission check so you can fix missing data, unclear methods or unsupported statements.
How do I use the Prep & Assurance workbook for s2-29-a-vi-2?+−
The workbook is a downloadable .xlsx designed to help you prepare the disclosure and get assurance-ready. Use it to organise the required datapoints, evidence and checks before you draft the final text.
What can I take from the synthetic example disclosure for s2-29-a-vi-2?+−
The page includes synthetic illustrative examples, including a quantitative table, to show what a finished disclosure can look like. Treat them as a drafting aid only and make sure any real numbers in your own version are internally consistent.
How do I turn the s2-29-a-vi-2 data into a draft disclosure?+−
The page gives draft-output support in the form of visualisation ideas, narrative starters and a content-index line. Use those to turn your prepared data into a clear first draft, then check it against the evidence pack and common gaps.
Can I reuse data prepared for s2-29-a-vi-2 in ESRS E1 (Climate Change)?+−
The page notes ESRS E1 (Climate Change) as the closest correspondence, so the same data may be reusable across both contexts. It does not say the requirements are identical, so you still need to check the other framework separately.
More questions this page can help with
s2-29-a-vi-2 checklist for asset mix by sector and portfolio size measures2-29-a-vi-2 screening exclusions what evidence should I keeps2-29-a-vi-2 emissions by scope coverage percentage allocation method templates2-29-a-vi-2 how to use the workbook and printable library cards2-29-a-vi-2 assurance claims evidence pack exampless2-29-a-vi-2 common mistakes before submissions2-29-a-vi-2 draft narrative starters and content index lines2-29-a-vi-2 synthetic example disclosure tables2-29-a-vi-2 what to ask the HR or data owner fors2-29-a-vi-2 how to set scope and methodologys2-29-a-vi-2 from company reports exampless2-29-a-vi-2 ESRS E1 data reuse
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