Part of the banks product offering is to guarantee loans / overdrafts, for small to medium enterprises - where the SME requests the facility from collaborative/partner financial institutions. Whilst there is a certain liability for the bank in guaranteeing these facilities, do these products require a temperature rating for scope 3?
We don’t currently have a method for addressing loan guarantees or overdrafts, which means that these are currently out of scope. Please refer to table 5.2 in the SBTi guidance for Financial Institutions (p55), to see which asset classes and activities that are in scope.
According to Table 15.2 in the Technical Guidance for Calculating Scope 3 Emissions (Greenhouse Gas Protocol) it states under Optional
All other types of investments, financial contracts, or financial services not included above (e.g., pension funds, retirement accounts, securitized products, insurance contracts, credit guarantees, financial guarantees, export credit, insurance, credit default swaps, etc.)
Companies may account for emissions from other investments in scope 3, category 15 (Investments)
Can I therefore confirm these types of contracts are however excluded from the SBTi targets?