Porto will be an unprecedented case in the calculation of insured emissions

February 27, 2025 / WayCarbon

Porto, an ecosystem of protection service solutions with 18 million customers, has partnered with WayCarbon, a global company and leader in climate solutions focused on the fair and resilient transition towards a Net-Zero economy, to develop a decarbonization plan for the company. The project is aligned with the company’s strategic objectives, aiming at the ambition of structuring science-based emissions reduction targets, and will feature a pioneering methodology for calculating insured emissions.

Porto already calculates greenhouse gas emissions from scopes 1, 2 and some applicable categories of scope 3, and with the support of WayCarbon, aims to take the next steps on the topic. “The project’s core challenge will be to calculate scope 3, which involves measuring indirect emissions from the company’s supply chain (categories 1 to 14), and a specific project for category 15, referring to Porto’s financed and insured emissions,” explains Higor Turcheto, WayCarbon’s Mitigation Manager.

The work also aims to establish consistent reduction targets and engage the value chain in mitigation projects. “Porto is fully aware that tackling climate change is urgent and inevitable. Our Climate Change Strategy, focused on decarbonization, reflects this commitment at every stage, from diagnosing emissions to defining long-term goals with the engagement of different stakeholders,” says Viviane Pereira, Porto’s Sustainability Manager.

Innovative methodology for estimating insured emissions

The insurance sector plays an important role in the transition to a low-carbon economy by protecting organizations and individuals against material damage caused by climate change. With the increase in climate disasters, the demand for insurers is growing, especially in sectors that require specific insurance for adaptation. As the transition to a low-carbon economy and carbon accounting evolve, insurers can identify which sectors and businesses in their portfolios require more refined solutions to advance decarbonization, such as agriculture, which is heavily affected by the effects of climate change, thus playing an active role in the climate transition.

In this project, the calculation of financed emissions will be carried out by Porto Asset (investments and equity) and Porto Bank (credit and financing operations), which represents a first step towards monitoring this key indicator of climate impact for financial institutions. Insured emissions will be based on an even more recent methodology, a pioneer in Brazil. “This will be the first Brazilian case for calculating insured emissions. We will use the methodology of the Partnership for Carbon Accounting in Financials (PCAF) and an integrated solution to contribute to the challenges of managing corporate and business GHG emissions. The integrated vision will be relevant for the dimension of values and financial impacts in the process”, assesses Bruna Araújo, Sustainable Finance Manager at WayCarbon.

Another relevant point of the work is the engagement of the company’s employees and executives in the topic. “Porto is acquiring more knowledge about the methodologies used, which brings more clarity to how and what type of projects should act to decarbonize the business. The engagement actions carried out throughout the project assist the data collection process technically, but also provide strategic support for the sustainability team, by demonstrating the relevance and results of the project for various areas of the company”, explains Bruna Araújo.

“At Porto, we believe that tackling climate change requires concrete and measurable actions. The partnership with WayCarbon marks a strategic step in our trajectory, bringing innovation and strengthening our commitment to sustainability. We are certain that this collaboration will generate positive results both in our operations and throughout the value chain, promoting responsible practices and inspiring a more sustainable future”, adds Viviane.