Hi, I am advising a UK bank which is 100% owned by a European parent. The UK bank has been developing targets for validation by the SBTi, its parent does not currently have plans to do so. Under the previous corporate net zero standard, subsidiaries were allowed to submit targets for validation. Reading criteria FINZ-C1 of the new FINZ consultation draft, I’m led to understand that it will no longer be possible for FI subsidiaries to have targets validated, this can only be done at the group / parent level. “Financial Institutions should submit targets only at the parent or group level, not the subsidiary level.”.
Please could you confirm that this is indeed the intention of the draft FINZ standard and, therefore, if this means that the UK subsidiary bank will not be able to have its targets validated when the new standard comes out?
Many thanks.