Exclusion of Non-Material Activities - Fossil fuel activities

The Exclusion of Non-Material Activities states that ‘‘FIs may exclude specific sub-asset classes categorized under “Required Activities” from their targets, provided these sub-asset classes constitute less than 5% of the Portfolio Target Boundary. Exclusions must apply to entire sub-asset classes uniformly and may not exempt any activities related to fossil fuels’’.

From this statement, we understand that if a sub-asset class meets the Non-Material Activities threshold and is <5% (e.g., Asset class: Corporate loan, Sub asset class: Long-term), but is exposed to fossil fuels in any capacity in addition to other sectors (i.e., different Sector / Market Specifications within the same sub-asset class), fossil fuel activities in this sub-asset class are still required to be covered by the target. Is this correct?

If so, can the other (non-fossil fuel) sectors within this sub-asset class be excluded from target setting based on the Non-Material Activities thresholds, or does this conflict with the requirement to exclude entire sub-asset classes uniformly?