As per the SBTi Near Term criteria for Portfolio Coverage Targets and Temperature Rating Targets, it is listed…
…For Portfolio Coverage Targets that “FIs shall commit to having a portion of their borrowers and/or investees set their own approved 1.5°C-aligned science-based targets such that the FI is on a linear path to 100% portfolio coverage by 2040”
…And for Temperature Rating Targets that “FIs shall commit to reducing their portfolio temperature scores such that the FI is on a linear path to the stated goal by 2040”.
Now, my question is whether this “linear path” is defined in terms of the target time frame, i.e. that as long as we fulfill the 5-year interim targets toward 2040, this will be deemed “a linear path”?
So, if we set a 2028-target this year, then it would be OK if our portfolio coverage declines in, say, 2026 compared to 2025, as long as we reach our 2028-target?
Many thanks in advance.