Name: Watershed Climate Platform
Brand: Watershed

Question 1

What kind of financial institutions use Watershed Finance?

Accepted Answer

Watershed supports a range of financial institutions, from private equity and asset managers to insurance and banks. Currently, 4 of the top 6 US banks and 6 of the top 10 PE firms are Watershed customers.

Question 2

What data sources and databases does Watershed Finance integrate (e.g., company data, PCAF scores, CDP)?

Accepted Answer

Watershed Finance integrates with various data sources including publicly disclosed company footprints from CDP and annual reports. When companies have measured and disclosed their footprint with Watershed, that data is surfaced in the Watershed Finance instance. The platform aligns with PCAF (Partnership for Carbon Accounting Financials) scope coverage requirements, ensuring all company footprints include scope 1 and 2 emissions and at minimum upstream scope 3 emissions. Watershed Finance has a company matching feature that allows users to match corporate assets to companies in Watershed's database, which enables the use of publicly reported emissions data and shows a company's SBTi status. The platform also incorporates data from ecoinvent, an organization providing environmental assessment data.

Question 3

What asset classes can Watershed Finance handle?

Accepted Answer

Watershed Finance supports four PCAF asset classes: listed equities and corporate bonds; business loans and unlisted equities; commercial real estate; and sovereign debt. The platform is in the process of adding new asset classes. For each supported asset class, Watershed provides templates that indicate the required data to generate financed emissions estimates, such as revenue and industry for corporate assets, and building type and building information for real estate assets.

Question 4

How does Watershed Finance support reporting to LPs or regulators?

Accepted Answer

Watershed supports the ability to produce fund reports for LPs and regulatory disclosures. We can ingest necessary asset/fund data, including the share of each fund belonging to individual LPs. Our platform is utilized by fund-of-fund and GP stakes investors for financed emissions calculations and reporting. We analyze disclosures or generate estimates for the underlying assets, which are supplemented with fund intensity metrics and peer benchmarks. This functionality allows for comprehensive reporting on emissions stemming from investments in funds.

Question 5

How can Watershed Finance help financial institutions make better decisions using sustainability data?

Accepted Answer

Watershed Finance helps investment teams make faster, better decisions by unifying reported and modeled emissions, risk data, and audit-ready lineage into a single source of truth across the investment lifecycle. With screening heatmaps, risk overlays, and optimization tools, teams can price climate risk and opportunity, construct and rebalance portfolios to carbon and alignment targets, and monitor issuers with automated updates and alerts. Company scorecards and engagement packs surface practical decarbonization levers, while PCAF‑aligned financed emissions and SFDR/CSRD indicators streamline compliance and reporting. The result is more confident allocation, lower data and assurance costs, and transparent analytics that fit existing quant and reporting stacks.

The complete sustainability platform  for financial institutions

Turn incomplete data into audit-ready measurements

Cover your full  portfolio in one place

Build defensible reports for regulators and LPs

Additional resources

Watershed named as PCAF’s first accredited partner

Platform overview

Watershed for CSRD

Get SEC disclosure ready with confidence

What every organisation should know about TCFD reporting

Streamline SECR reporting

Watershed for financial institutions FAQs

Turn incomplete data into audit-ready measurements

Cover your full portfolio in one place