Loans to public governments

Dear SBTi Community,

I represent a bank which is having a big portion of their portfolio in loans towards regional governments of regions and cities.
Since governments and regions do not have a methodology to set Science Based Targets the “portfolio coverage ratio” of this portfolio is rather low. However, since I currently do not see a methodology for governments developed to set SBTs I am wondering how you would handle such oans. Would you exclude them from your portfolio coverage calculations or would you choose another target setting method?

Hi Frenky,

Thanks for your question. Loans to governments are indeed out of scope currently so can be excluded from portfolio coverage calculations.