Defination of Fussil Fuel sectors

Hi there,
I have 2 questions regarding the definition of fossil fuel companies.

  1. According to FI-R11– Disclosure of Fossil Fuel Investments and Lending, SBTi recommended financial institutions use the share of revenues as the basis for judgment. However, if the company changes its share of revenues from fossil fuel activities, is it still a fossil fuel company?
    For example, a company belonged to a fossil fuel company because more than 10% of revenues from gas power generation in 2022; if this company reduced the share of revenues from gas power generation from 10% to 2% in 2023, it will not be a fossil fuel company.

  2. The value chain regarding fossil fuel or O&G companies is based on the information as follows?
    (1) Companies that have activities (i.e., identified as share of revenues) in the exploration; extraction; refining; transportation and distribution; storage; retailing; marketing; trading; or power, heat, or cooling production from oil and gas. FIs should disclose the threshold used to delineate oil and gas companies; the SBTi recommends a 5 percent threshold and for the threshold to not exceed 30 percent.
    (2) In line with FI-R10, companies with greater than 5 percent of revenues from thermal coal mining, exploration and drilling, mining services, processing, trading, transport and logistics, equipment manufacturing, operations and maintenance (O&M) services, engineering, procurement and construction (EPC) services, transmission and distribution of coal-fired electricity, coal to liquids (Ctlg) and coal to gas (CtG).

FI-R10 and FI-R11 indeed provide fossil fuel guidance for Version 1.1. To note, FI-C17.4 provides fossil fuel guidance for the pilot test version 2.0 of the Near-Term Criteria and Recommendations for FIs.