Minimum requirement of a FI

General
1

Hi,

I am setting a science-based target for a client who is in the ICT sector but ~5% of their revenue from investment activities, e.g. holds shares in companies or invests in funds. Would they be considered a FI even though their principal revenue comes from their ICT business?

Under the current SBTi criteria it states:

The SBTi defines a FI as a company whose business involves the arrangement and
execution of financial and monetary transactions, including deposits, loans, investments, and
currency exchange. More specifically, the SBTi deems a company a financial institution if 5%
or more of its revenue or assets comes from the activities described above

2

Hello,

Thank you for your question. Currently, if ≥5% of the company is in the business of the mentioned activities, it would be considered a FI even if their principal revenue comes from their ICT Business.

You may read more about our classification here: Financial institutions, How does the SBTi define financial institutions - Science Based Targets