We are currently calculating financed emissions, and wonder if we can exclude borrowers’ scope 3 emissions when it comes to setting Temperature Rating and SDA targets.
Significant portion of our borrowers/investees consist of small and medium-sized enterprises (SMEs), and we realised the potential risk of overestimating their Scope 3 emissions if we use PCAF emission factors.
To address this concern, our current plan is to primarily focus on calculating scope 1 and 2 emissions and establishing Temperature Rating targets with scope 1 and 2 emissions of our borrowers/investees.
Would it be acceptable if we only disclose the scope 1 and 2 emissions of the investees/borrowers’ financed emissions (i.e. excluding their scope 3 emissions)?
We will greatly appreciate your guidance in confirming the submission requirements.