I am aware that in July, tools and guidance will be updated in line with 1.5 degrees. Can I please check what this means for FIs’ Scope 1 and 2 emissions? Currently, the absolute contraction approach mandates a 4.2% reduction per year. Will this minimum reduction change as of July (and possibly become higher for targets submitted “later”)?
The corporate criteria is changing to mandate a minimum 1.5C reduction for S1+2 emissions. For the absolute contraction approach, that means a minimum 4.2% linear reduction per year over the target period. We are still assessing if this will also be applied directly to the financial institutions framework, but we expect that S1+2 ambition criteria for FIs and corporates should be consistent later this year. The specific criteria updates will be addressed as part of our annual criteria update process which will occur later this year