Good evening SBTi team / community. I went through the FAQ and could not find a clear answer about the rules around the selection of the base year. If I have, let say, to submit in H1 2023, what is the most recent year I can use as base year ?
Many thanks.
Dear Nick,
On the FAQ website there’s the question “How has the coronavirus (COVID-19) pandemic affected target setting? Does the SBTi have any specific guidance or recommendations on this topic?”:
For companies that have been significantly impacted by COVID-19, the SBTi recommends selecting a base year such as 2019 instead of 2020 or 2021 when setting targets. Alternatively, companies are welcome to use a multi-year average base year approach, as described in Chapter 5 of the Greenhouse Gas Protocol Corporate Standard. As some companies have been less impacted by COVID-19 than others, the SBTi will still allow 2020 base years for target setting purposes and will allow companies to make their own determination about the appropriateness of a 2020 base year.
The SBTi also assesses ambition of the most recently reported year of emissions during the target validation stage. The SBTi similarly recommends 2019 is used for most recent year emissions when a business has been significantly impacted by COVID-19. The SBTi accepts most recent year inventories for up to two years before target submission, so 2019 most recent year emissions will be acceptable for all target submissions in 2021. In 2022, the SBTi will make an exception for acceptable most recent year inventories, allowing 2019, 2020, 2021, or 2022.
Just keep in mind this guidance might change in 2023, so keep updated on the COVID FAQ for any changes on the future.
I hope that helps!
Monica
Good morning Nick and Monika.
I have selected 2019 as base year and most recent year to set my target for Scope 1&2.
However, now as we checked online, there is no longer any appointment available in 2022. The most recent appointment is Feb 2023. Does SBTi still accept my target with 2019 as base year and most recent year if I now book my appointment in Feb 2023?
Many thanks!
Hi all,
I’d like to echo Veronica’s question - will 2019 base years still be accepted in January 2023?
Thank you!
Hello Veronika and laurab,
Thank you for your question.
The SBTi will still allow setting 2019 as base year for 2023 submissions, however FIs must report most recent year data and emissions as of 2020, 2021 or 2022.
Best regards,
Monica
Hi Monica,
Just to confirm, would this mean that if a company chooses a 2019 baseline they must also report emissions for all following years until present (2020, 2021, and 2022)?
Thanks,
Eric
Hello Eric,
We will allow 2020 as the earliest MRY for 2023 submissions. However, 2020 is often not a representative year of FI’s activities. If the FI has 2021 or 2022 emission inventory, that is definitely better.
I hope this helps to clarify your question.
Hello!
I have a follow-up question:
We are considering committing to SBTi soon, but we would probably not submit our targets for validation before end 2024/2025.
So, my question is what base year we can choose. Is it correctly understood that if we, e.g., end up submitting our target in January 2025, the baseline should be no earlier than January 2023? Or would we be able to use 2022 or earlier as base year?
Thanks in advance,
Nina
FIs must select a complete past calendar year or fiscal year as a base year. The SBTi recommends choosing from the two years prior to the year of target submission but the base year shall be no earlier than 2015 and must have sufficient forward-looking ambition, as detailed in the Target Validation Protocol.
Hi Howard,
What do you mean by a “complete past calendar/fiscal year” as base year?
When calculating the baseline for, say, SBTi portfolio coverage, wouldn’t it be OK to calculate the baseline based on portfolio data and SBTi target data from a given date, e.g., 31st of December 2022?
Also, how is 2015 as base year compatible with Monica’s answer above that you “will allow 2020 as the earliest MRY for 2023 submissions”?
Best,
Nina
Hi Nina, a complete past calendar/fiscal year means a calendar/fiscal year that has ended. Target language requires the specification of a base year - calculating the SBT portfolio coverage as of Dec 31, 2022 would just mean you are using the 2022 calendar year as the base year. While we recommend using the most recent year as the base year, they may not be the same.