I have a question related to the latest guidance from the draft documents for FINZ.
FIs should use the SBTi Buildings Target-Setting Tool to set targets on their real estate portfolios. FIs are currently permitted to continue using the existing mortgages and real estate target-setting tool. However, this tool will be retired at a later date.
Now, we are the situation that we are thinking of committing to SBTi in early 2024 and validating our targets within the given timeframe (ca 2Y). However, we have already been setting targets using the current SBTi tools including the current buildings tool. Will our target therefore become invalid once the old buildings tool is “retired”? When do you expect to “retire” the existing tool?
The SBTi assesses targets based on the prevailing guidance and criteria at the date of submission. Once approved, the targets will remain valid, until they are reassessed within 5 years, against the then-prevailing guidance and criteria.
Per FI-C10 in the Near-Term Financial Sector SBT Guidance: Targets must be modeled using the latest version of methods and tools approved by the SBTi. Targets modeled using previous versions of the tools or methods can only be submitted to the SBTi for an official validation within six months of the publication of the revised method or the publication of relevant sector-specific tools.
I have to say, this sounds a bit dis-incentivising for institutions that are already well into their decarbonisation journey but who have not yet validated or committed to SBTi. Your work done so far seems to be at risk of becoming “worthless”.