Near-term targets - Optional Activities only

Net Zero for FIs
1

Hello,

Apologies if this has been asked elsewhere, I could not find anything.

If a FI does not operate within any of the required activities, do Scope 3 categories 1-14 still remain optional? Or would they then be required to set a near-term target on categories 1-14? For example, a portfolio only containing consumer loans.

Thank you,
Phil

2

Hi Phil, per the pilot test version 2.0 of the Near-Term Criteria and Recommendations for FIs, it is proposed that in addition to the coverage requirements outlined in Table 1, FIs shall cover at least 67% of its required and optional asset classes with targets. If the company does not have any required or optional asset classes, then it may need to set targets as a corporate, which would require covering its scope 3 categories 1-14. Please also refer to this thread for a related question.

3

Hi Howard,

Thanks for the response. So just looking to clarify one thing. If the only category 15 activity is consumer mortgages, an optional item, what would happen under the below scenario?

As consumer mortgages are optional, no category 15 target is set. Would this require targets to be set as a corporate?

Thank you,
Phil

4

If consumer mortgages make up over 5% of revenue, then it could be considered an FI. An FI would need to cover at least 67% of required and optional asset classes with targets.

1 Like
5

Hi Howard,

Thank you for your confirmation and help.

Do second-charge consumer mortgages need to be included as well? Or would it just be first-charge?

Thank you,
Phil

6

Both should be included.