Full definition
EVIC is the reference denominator in PCAF Asset Class 1 (Listed Equity) for calculating attributed financed emissions: amount invested / EVIC × issuer’s absolute emissions. Avoids double counting between shareholders and creditors and remains more stable than capitalisation alone. Limitation: moves with markets, so the same investment amount attributes fewer emissions when capitalisation rises (denominator effect).
Key figures
- Capitalisation + debtEVIC formula = market capitalisation + total debt + minority interests (PCAF 2024)
Questions and answers
Why does PCAF use EVIC rather than capitalisation alone?
Because a company is funded by shareholders AND creditors. EVIC allocates emissions between both, preventing debt or equity alone from carrying 100 % of the issuer’s emissions. It is also more stable over time than pure capitalisation.
Does EVIC change attribution from one year to another?
Yes. If a company’s capitalisation doubles without its emissions changing, intensity (tCO2e/€M) is halved. This is the denominator effect, which must be documented in CSRD ESRS E1 reporting to avoid overselling purely accounting-based decarbonisation.