I-PEPs Methodology Standard

I-PEPs: A new KPI set for steering the decarbonisation of financial portfolios

The Indicators for Portfolio-related Emission Performance (I-PEPs) represent a new generation of key performance indicators  that enable financial institutions to manage and steer the decarbonisation of their core business activities.

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I-PEPs has been developed within the scope of the Austrian Green Finance Alliance. This innovative KPI set covers a broad spectrum of the financial sector. It includes tailored metrics for both the investment and lending portfolio and insurance activities. Despite its wide applicability, the underlying methodological approach is standardised and therefore enables potential scalability to other types of financial assets. I-PEPs require few input factors and are therefore more robust against unwanted factors influencing the emission development. The reduced data requirements can lead to a reduction in the necessary personnel and financial costs for financial companies, thus freeing up resources for portfolio steering.

I-PEPs consultation documents

I-PEPs Methodology Standard  (consultation draft)

I-PEPs presentation  (overview on I-PEPs and its methodological approach)

Calculation spreadsheet  (sample calculations of the methodology standard in more detail)

The documents in German language can be find here: Indikatoren für Portfolio-bezogene Emissionsperformance.

History of the I-PEPs development

  • July 2024: Publication of the I-PEPs discussion paper for public consultation
  • June to August 2024: Public consultation (I-PEPs discussion paper)
  • From September 2024: Evaluation of feedbacks
  • 12 June 2025: Publication of the I-PEPs Methodology Standard (consultation draft) and start of I-PEPs pilot phase
  • 12 June to 10 September 2025: Public consultation (I-PEPs Methodology Standard draft)
  • 25 June 2025: Webinar 2:00 to 3:00 p.m. CET – Presentation of I-PEPs Methodology Standard (Registration) 
  • 31 August 2025: End of I-PEPs pilot phase 1
  • 30 September 2025: End of I-PEPs pilot phase 2
  • Late autumn 2025 (scheduled): Publication of the I-PEPs Methodology Standard

How do I-PEPs work?

Depending on the scope of application, I-PEPs can be calculated on two different calculation bases: absolute GHG emissions or physical emission intensities of portfolio positions. In both cases, solely reported emission data are being used for calculating I-PEPs. To weight and aggregate the emission performances of portfolio positions, two general weighting factors are being used: One reflecting the relative portfolio volume weight and the other one the relative emission scale of the respective portfolio position. 

Target setting based on I-PEPs also rewards active transition support in greenhouse gas-intensive companies in the real economy, as only the greenhouse gas (GHG) emissions trend over time (and not the absolute GHG emissions level) determines the progression of the indicators. The resulting steering signals from the use of these indicators influence both new business (ex-ante evaluation of transition willingness) and existing business (ex-post analysis of transition progress).

More information on the methodology of I-PEPs can be found in the methodology standard.

Do you have remarks or questions on I-PEPs? Please contact the Green Finance Alliance Coordinating Office: gf-alliance@umweltbundesamt.at