- How should we define long-term credits for SBTi purposes? Is it correct to say that a long-term credit is the one with a tenor (from credit issue to credit repayment date) over 12 months or is it a corporate credit that has a residual/outstanding repayment date (from reporting date to repayment date) of more than 12 months?
- Is it correct to limit corporate credits category only to corporate credits or should it also include other products (eg. Letters of credit, Guarantees, Derivatives, Overdrafts, etc) with repayment date of more than 12 months?
For #1, it is based on tenor. For #2, letters of credit and overdrafts are essentially loans. For guarantees and derivatives, please see the proposed Table 5.2 of the draft Near-Term Financial Sector SBT Guidance for more details.
Do these answers also apply when the bank sets targets according to the current standard?
Yes, it should be the same.