Given that SBTi is going to release new criteria, how will this new criteria have an impact on criteria and guidance for financial institutions? In terms of Scope 1 and Scope 2, will financial institutions have to use the 1.5°C scenario? and for Scope 3, will financial institutions have to use the well-below 2°C scenario?
Thanks for your question and your patience as we follow up.
For now, the FI framework will not be impacted by the new corporate criteria but we expect to integrate these ambition levels for FIs when the FI framework is updated in 2022.
I wondered if you have an update on your reply above. I have a very similar question but couldn’t find the answer in the latest FI Guidance document from February 2022 :
Should FI’s use the FI specific SBTi Criteria (April 2021) or the latest SBTi Criteria V5 (October21) when setting targets for Scope1,Scope2, Scope 3 – Category 1-14?
The FI specific SBTi Criteria (April 2021) is based on SBTi Criteria 4.1 and states that ‘ Where relevant , these criteria are subject to the SBTi’s annual update of corporate criteria’ . Can you specify how to interpret ‘where relevant’?
I assume that it is recommended to use the latest SBTi guidance but am not sure if this applies to all changes as the FI criteria states: ‘Version 4.1 of the SBTi general criteria for companies serves as the basis for these sections, with slight deviations for financial institutions.’ Where does this apply? I could only think of the different target timeframes: 5-15 years (mid-term) vs. 5-10 years (near-term). As the FI criteria recommends choosing the same base and target year for all mid-term targets timeframes (and portfolio emissions targets are also defined as mid-term targets), see FI-R5- Consistency
Many thanks in advance.
Hi Christine, FIs can choose either approach. Best practise is obviously to use the higher ambition levels set out in the corproate v5 critieria, but for now we will still accept the slightly lower ambition outlined in the Apr 2021 FI criteria
Thank you for confirming, Eoin!