M&A impact on target setting


Due to data availability, we aim to set SBT by using 2019 inventory as baseline. However, we have completed an acquisition recently in 2021. If we could ensure that the expanded boundary would not interfere with our progress on achieving the reduction targets, which might be intensity targets for scope 1, 2 or 3 set in compliance with the PCAF and SBT methodology, will it still be a concern in the review of our SBT submission?

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This would be assessed during the validation, however, we would recommend that you use the most recent available year for which you have full data. If this is 2019, then it can be used as the baseline and the 2021 acquisition would not impact this yet. However it is expected that the acquisition be brought into the portfolio for future reporting and hence it will impact the ability to meet the targets.

For companies who expand their business boundaries, they can re-baseline in future years to ensure that the targets are more representative of the current business boundaries