My understanding is that the SBTi Finance Tool uses the ISIN number of a company to determine whether the company has an approved SBT, using the ‘companies taking action’ database. However, the companies taking action database does not contain an ISIN number for every company.
Say I have a portfolio of 10 companies, 4 of which have approved SBTs, but only 3 of these have ISINs on the ‘companies taking action’ spreadsheet. If I put these companies in the tool, with the ISINs that I have, will the portfolio coverage figure outputted by the tool not take into consideration the 4th company with no ISIN?
Related to this point, I actually don’t think the tool works at all for the portfolio coverage approach. When I inputted 8 companies from the ‘companies taking action’ sheet, that have targets set and ISIN numbers, only 3 of these has ‘TRUE’ in the ‘sbti_validated’ column in the data_dump file. This suggests the tool isn’t picking up all companies with targets set even where they do have ISIN numbers and validated targets.
Even among these 3 companies, the ‘Portfolio coverage’ percentage provided by the tool under the WATS approach differs from my own calculation of the percentage of investment_value of these three companies in the full portfolio.
Hi Nettie,
The tool uses the ISIN to read from the CTA file so your conclusion is correct, it won’t be able to add information about SBTi approval in the relevant field.
Thanks,
Peter
Regarding your point on missing SBTi data, my guess is that the CTA file being accessed is dated. Currently, the file is part of the pypi package that Colab or Jupyter Notebook installs. We will soon release a version of the tool that fetches the file automatically from SBTi so as to always have the latest information. However, the format of the file is being redesigned so we need to wait for that to stabilize before updating the tool.
Regards,
Peter