67% of base year corporate lending - including SME?

Criteria
1

Hi there,

Can I please get a clarification on target requirements for 67% of corporate lending?

  • Option 1: Calculate 67% of remaining balance sheet after mandatory sector targets are set, including SMEs. Set a target, that covers 67%, with SMEs optional.
  • Option 2: Excluding SMEs, calculate 67% of remaining balance sheet after mandatory sector targets are set. Set a target, that covers 67%.

Which approach is required?

Many thanks,

Ana

2

Hi Ana,
Option 2 is the approach that should be used. As SMEs are optional they will not need to be covered in the calculation to determine he 67% threshold.

3

Hi,
What if all of the asset classes relevant to the FI are currently optional - what then would the theshold be? Would they then need to cover 67% of the optional classes?
Thanks

4

If an FI is involved solely or mainly in optional asset classes, it should contact the SBTi to discuss a minimum target coverage boundary of these asset class(es) for the portfolio targets to be considered credible.