FI Portfolio composition

How would you propose that FIs consider their future portfolio mix to account for projects / clients that may be coming on and off the portfolio? How do you expect FIs to deal with upward fluctuations in their financed emissions as a result of projects that enable the transition (e.g. transitioning a coal plant to gas) come online?

Portfolio changes should not impact target setting as we expect some element of portfolio reallocation to be implemented to achieve targets e.g. this may to finance more companies with SBTs, or increasing financing to lower intensity companies in given sectors (tracked with the SDA method).
As the SBTi does not use absolute emissions targets for FIs, upward fluctuations in financed emissions should not impact the ability of FIs to meet targets. For example, with a portfolio coverage target, financed emissions may increase significantly in the short term by financing more high emitting companies with SBTs e.g. in the power or cement sector.