Auto OEMs - Captives

Criteria
1

Hello,

When a financial institution is setting a target for the Auto OEMs sector, what is the SBTi’s expectation on captives? They assume a significant amount of financing, however, their business model is different to the manufacture of vehicles (as they are a provider of finance themselves). Should they be included or excluded?

Many thanks,

Ana

2

Hi Ana,

Their scope 1 and 2 emissions should be included based on the chosen inventory consolidation approach. In terms of their financed emissions, motor vehicle loans are currently out of scope until a target-setting method is available.

Thanks,
Howard