Exclusion of minor asset classes that are required activities for the first validation

Hi Madame/Sir,

It seems that other financial institutions set the targets only for their main asset classes. Our portfolio consists mainly of SME loans and very little of the SBTi’s required activities. (e.g. asset share of ‘Corporate loan: other long-term debt’: 2%; ‘Corporate loan: commercial real estate’: 0%; ‘Common stock’: 0%; ‘Preferred stock’: 0%; ‘Corporate bond’: 0%)

  1. Could you let us know if we can first set the primary asset classes, which are optional activities, for the initial target validation and expand the target coverage later on to other asset classes? (E.g ‘Corporate loan: other long-term debt’ is not one of our major asset classes.)
  2. If we are able to exclude minor asset classes, even if they are required activities, for the first target validation, what is the exclusion threshold? Is it relevant to the proportion of total loan or GHG emission?

Thank you

Hi @Junil,

FIs shall set targets for all assets classes in table 5.2 in the guidance that are required for the minimum required coverage listed in that table. And we naturally recommend also setting targets for optional asset classes. If you don’t have any assets that listed as required or optional in that table, it may be the case that the FI framework is currently not applicable to you. As we are updating the framework with more asset classes, activities and methods in the future, that may change though.