We have found two Excel tools for SDA target setting available on SBTi page: the first one contains the following sectors for SDA setting: 1. Power, 2. Iron and Steel, 3. Cement, 4. Aluminium, 5. Pulp and paper, 6. Services – Buildings and the second one contains target setting tool for Real estate. There are also additional tools provided by SBTi e.g the target setting tool for Transport sector.
How in practice SDA targets are set by Banks for various sectors and how (possible) incomplete data from some companies be addressed?
a) How are SDAs defined for sectors and companies, sub-sectors etc.?
b) How do you allocate a particular company to a sector? Is there a list of NACE codes assigned to each sector? Can we use our “internal” judgement based on NACE codes?
c) Is it obligatory to take into account all companies from a given sector when setting targets for this sector, or can we set SDA targets for only part of companies from a given sector?
d) What should be done if there are partial gaps when setting a target for a particular sector, i.e. we have complete data for one part of the companies in a given sector and incomplete/missing data for another part (no information on the company’s emissions or production in the base year or production in the target year)? Which method should be used in this case: 1) Replace missing data with an estimate from companies that have the necessary data. 2) For companies with missing data, use indicators from the PCAF. 3) For companies with missing data, set targets with another method, Temperature Rating or SBT Coverage.