Min. Ambition for Resi. Mortgages - FIs

Criteria
1

Hi,

What is the minimum level of ambition for FIs setting near-term targets specifically for its residential mortgages?

I’m confused as there is some contradiction in the minimum level of ambition between some of the documents. The Explanatory Document (page 47) and the Near-Term Criteria (page 21), which reference each other, stipulate using the Buildings Sector Tool with a 1.5°C. In addition, the SBTi website details the below.

“This tool is a modification of the above for use only by FIs. It is to be applied to sector-level components of FIs’ portfolios. This version of the tool is to be used for modeling targets with well-below 2°C ambition, and includes the following sector-specific pathways: Power, Iron & Steel, Cement, Aluminum and Pulp & Paper that can be used until November 30, 2024. From November 30, 2024 on, well-below 2°C targets can only be set for Aluminum and Pulp & Paper using this tool under the FINT Criteria V2.”

However, this document

(which has been updated most recently) (page 60) details well-below-2°C specifically for resi. mortgages. and provides a different target-setting tool to the Buildings Sector Tool.

Could you please clarify?

Thank you in advance.
Josh

2

FIs can submit well-below 2°C near-term targets for residential mortgages under FINT V1.2 until November 30, 2024.

From November 30, 2024 on, FIs will need to submit near-term targets under FINT V2.
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
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