Acceptance of a target with future commitments

Dear SBTi, is it possible to set a target with future commitments? For example, in the shipping sector, we only at the moment have one kind of vessel (hybrid with small emission intensity) and only 3 of them, but this will expand in the next few years. Is it therefore possible to first set a non-numerical target and then at a later stage, when the portfolio is larger and more diverse, change it to numerical?

Hi, is this question for an FI setting targets or a real-economy company?

Hi, apologies for being unclear, it is for a FI setting targets.

The FI near-term target framework currently only uses the Sectoral Decarbonization Approach, Portfolio Coverage, and Temperature Rating methods for setting targets. The FI Net-Zero (FINZ) Standard is currently under development and could explore other target-setting metrics/methods however. There will be further opportunities for public consultation on the FINZ Standard.

Hi @HowardS,

Just wanted to follow up on your response - In our lending book, we have 1 vessel that we have financed and the rest of the loan is a corporate loan to shipping companies. Quite naturally, setting SDA target using just 1 vessel emission as a baseline would not be credible considering there may be other types of vessels in the future we will finance. We think banks are able to establish baseline only with a good mix of different vessels. My question is - Can we still send our SDA targets to SBTi without the baseline but with a commitment to align our target year portfolio with the pathway established by SBTi?

Thanks for your prompt response and support to us.