As a financial institution, are we required to submit targets as a Group or can we exclude parts of the business that have clear organisational boundary independence? Specifically, we are asking whether financial institutions can submit targets that exclude asset management arms or other entities; as long as these are a separate legal entities that file their own annual report and accounts.
Welcome to the community and thanks for your question. The simple answer is no, you cannot exclude any parts of your organisation. There is currently one exception, where banks can currently exclude their asset management divisions, but it needs to be clearly disclosed. Please see p 54 in the guidance document. SBTi still recommends that banks include their asset management in their targets, as it is best practice and follows the boundary requirements for all of SBTi.