Fossil fuel industry Portfolio Coverage target - lack of SBT possibilities on oil & gas


I have a question on applying the Portfolio Coverage approach for setting targets on the fossil fuel industry. Through the Portfolio Coverage approach the FI commits to having a portion of their borrowers/investees set their own SBTi-approved science-based targets such that the FI is on a linear path to 100% portfolio coverage by 2040. However, as currently commitments are paused from fossil fuel companies for the time being, does this not potentially impede achieving portfolio coverage targets? What are SBTi’s thoughts on this? Thanks!

Kind regards

FIs may set a Portfolio Coverage target that covers the fossil fuel sector but indeed the validation of fossil fuel companies is currently paused, which could potentially impact the achievement of the Portfolio Coverage target until the SBTi Oil & Gas sector guidance is published. However, if the target covers various sectors (e.g., equity investments in all sectors), the FI could focus on any portion of that particular portfolio to achieve the target.

Thank you Howard, but if the target only exclusively covers fossil fuel companies, there is no workaround for this? When is the oil & gas sector guidance expected to be published and ready for use? Thanks.