Hi SBTi finance team,
Could you please let me know if a full value chain inventory is mandatory as part of the submission for target validation?
I don’t think it’s required as mandatory scopes for target are: scopes 1+2 and category 15 of GHG protocol (investments). Just want to be 100% sure.
Hi SBTi finance team,
I’ve had a reply from SBTi target validators recently on this subject.
I hope this email finds you well.
I raised this question with the broader target validation team, as I mentioned before, under the current Financial Sector Guidance FIs need to submit a complete inventory for categories 1-14 and meet the Corporate criteria 5.0. However, as targets on cat 1-14 are currently optional for FIs, FIs don’t have to cover with targets 67% of the GHG emissions from cat 1-14 in order to allow their focus to be placed on setting targets on their investment and lending activities.
Note that this criteria will change over time to increase the level of ambition.
This I interpret to mean that FIs DO need to include a full categories 1-14 inventory, even if they choose not to set optional categories 1-14 targets - but if we do set optional targets, we don’t have to include a minimum of 67% of scope 3 cats 1-14 in those specific targets.
Hope that helps!
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Hello EmmaL and Matias
Thank you for your questions. I would like to clarify on the above. Currently, FIs are only required to provide their inventories for scope 1 and 2 and scope 3 category 15: investments.
Setting targets on categories 1-14 is optional under the current FI Guidance, as such, it is recommended but not required for FIs to measure and submit a full inventory for categories 1 to 14 at this point.
However, FIs wishing to increase their ambition setting scope 3 cat 1-14 targets must submit a complete inventory following the minimum boundary for each category in conformance with the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard. Optional targets on these categories must meet the scope 3 criteria in the latest SBTi criteria for companies (e.g., including 6, 13-14, 18-20) to be approved by the SBTi.
The caveat here is that, as these targets are optional, we recommend but not require that FIs cover 67% of emissions from categories 1-14 with targets.
I hope this helps to clarify the actual validation process for FIs.