Hi, please could you clarify if a 1 year term business/corporate loan is defined as long or short term debt? Per SBTi, long-term debt is more than one year and short-term debt is less than one year. So what would a 1-year term loan be classified as? We intend to classify it as short term, but we want to double check our assumption.
Thanks!
Hi Jo, thanks for the question. short term debt can be considered up to an including one year, so your assumption is correct.
Hi Eoin,
On this subject, can you confirm me that for the following mandatory SBT corporate loans [commercial real estate, corporate loan electricity generation] we can exclude from the scope of the analysis all SMEs and all “short-term” loans? Thank you very much
Hi Eoin and the SBTi team,
Would like to check if you have any suggestion for Antonio’s question - regarding the corporate loans [commercial real estate and corporate loan electricity generation] target-setting, could FIs also exclude all SMEs and short-term loans? For [electricity generation project financing], could FIs also exclude all short-term financing projects?
Thanks!
Table 5.2 of the Near-Term Financial Sector SBT Guidance, which provides minimum coverage requirements, has been updated in the draft Version 2 with more granular specifications for each asset class. If there is no differentiation in short vs. long-term mentioned for an asset class, then both are in scope.
The proposed changes are up for public consultation so we welcome your feedback/questions on this document, and two other new documents, through the survey by Aug 14.