Level of Ambition - Real Estate and new buildings standard

1

Dear all,

I think this question is of crucial importance for all FI’s that seek to set Science Based Targets.

Following the recently published Buildings Standard of the SBTi FI’s are required to follow the newest methodology for their financed emissions in the real estate sector too. Buildings-FI-C1.

Criterion for Financial Institutions: FI-C17.1 – Sectoral Decarbonization Approach Targets from the FI-NT Standard states: […] FIs may use any 1.5°C-aligned
climate scenarios as long as their physical intensity targets are of equal or greater ambition
than the minimum target ambition level required by the relevant SBTi tool […]

The newly developed buildings tool (which can be found on the SBTi Buildings Site) uses a different / more specific decarbonization pathway. Therefore - am I assuming correctly, that FI shall from now on only use the new buildings tool for operative emissions?
Please note - first calculations showed, that this will most likely lead to higher target values (at least for central / western european buildings portfolios)

Additionally, this tool is not very handy for portfolios (since you need to calculate separately per country and building type - is it planned to develop such a tool for portfolio analysis too?)

I would highly appreciate an answer since we would like to submit our targets by the end of the month.
Yours
Frenky

2

For FINT V2 near-term target submissions, FIs can set targets using the:

  1. Corporate Near-Term Tool for submissions until February 28, 2025 (6 months after publication of the Buildings Criteria)
  2. Buildings Target-Setting Tool can be used now and will be required for all submissions after February 28, 2025