How do I approach the SDA method for asset classes with low PCAF data quality scores? For asset classes with a low PCAF data quality score (e.g. commercial real estate) how should we approach the SDA method?

Methods
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In general, the SBTi is comfortable with FIs using proxies and modelled estimates where they
do not currently collect the data required to set a target, even where this constitutes the
lowest data quality on the PCAF scorecard (e.g. score 4 or 5). However, FIs are expected to
improve their data quality over time, and to recalculate targets if there are any major changes.

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Hi @ChendanY,

The data quality score of PCAF does not apply to the intensity metrics (i.e. square meter, km, production volume, etc.). If we set targets with SDA method, can we use proxies and estimates for these data to calculate physical intensities as well?

Thank you

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@roxane.vanlerberge SBTi accepts proxy emissions data to be used as per PCAF’s scorecard, but we don’t have precedents of proxy physical activity used by companies or financial institutions. The SDA method also requires both emissions and activity data as input. Given these reasons, I’d say proxy emissions intensity data is not accepted of not calculated from collected emissions or proxy emissions data and actual activity data.

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