Dear SBTi Team
We are an asset manager invested in Real Estate.
We would need clarification on the Guidance for FI (reiterated in the Buildings Preliminary Guidance section 6.2.1).
For near-term targets:
● (1) A maximum of 5% of scope 1 and 2 emissions can be excluded from a user’s GHG inventory. However, 100% of the resulting scope 1 and 2 inventory must be included in the target.
● (2) If a company’s relevant scope 3 emissions are 40% or more of total scope 1, 2, and 3 emissions, a scope 3 target is required. [indeed, our case] The target must cover at least 67% of scope 3 emissions.
For long/term (net-zero) targets:
● (3) Scopes 1, 2 and 3 shall be included. A maximum of 5% of scope 1 and 2 emissions can be excluded from a user’s GHG inventory. However, 100% of the resulting scope 1 and 2 inventory must be included in the target. The coverage shall be at least 90% for scope 3.
Required activities, if relevant, shall be included in the target boundary. For example, FIs shall include at least 67% of base year activity (in m2 or financed emissions) from direct investment in real estate assets in the target boundary (if relevant).
Questions: If we wish to set a near-term and long-term targets on our investments, Scope 3 Category 15, can we submit a base year GHG inventory covering at least 67% of the floor area of assets under management, and develop a target based on that inventory ? How does that reconcile with the long-term requirement of 90% in point (3)? Does this imply that the base year inventory for Scope 3 emissions shall be adjusted?
Similar question for Scope 1,2 related to our corporate offices. Can we exclude 5% of emissions for the inventory based on floor area as well? If not, do we need to calculate / estimate 100% of Scope 1 and 2 (non-building activity related) emissions and on that basis exclude 5% ?