For PC method do i literally just need the list of companies with approved or committed SBT targets from the website or do i need all their emissions calcs? (scope 1,2,3)
Hi @ECOgoals2,
Yes, for portfolio coverage that is all you need, a list of companies that have had their targets approved by the SBTi. You can get this list on our website under the heading “companies taking action” and also download an Excel version of the table. Several of the data providers, such as Bloomberg, CPD, MSCI, Urgentem, to name a few, also have this data in their systems.
Hi @Donald,
I see here that you confirm that the only data that is needed for the PC method is an overview of the companies in the portfolio with validated SBT. To calculate the baseline it says in the guidance that one need to use a weighting approach.
Can one simply use: (for example for the required activity/asset class: listed equity and bonds)
[assets under management in portfolio companies with validated SBT]/ [total AUM] =% coverage in baseline year for PC method
I would much appreciate a clarification!
Hi @Donald,
The part that is confusing in the guidance for PC method is that you refer to the aggregation methods listed in the temperature rating method. Those methods/formulas require that you calculate temperature score (Ts) for each portfolio company. But then you confirm that “you literally just need the list of companies with approved or committed SBT targets for PC method”. So for PC, should I then simply ignore Ts in the formula? As I understand it you need more that the list of companies with approved SBT to calculate the temperature score for a company…
Can one simply use: (for example for the required activity/asset class: listed equity and bonds)
[assets under management in portfolio companies with validated SBT]/ [total AUM] =% coverage in baseline year for PC method ?
Thank you!
Good point. That isn’t very well explained. However, as the portfolio coverage (PC) method is binary and we’re using the temperature rating aggregation methods we can replace the outcome from the temperature rating method for the companies, i.e. TS, in the formula with the outcome of the PC-assessment, i.e. 1 if the company has an approved target or 0 if the company does not have an SBTi-approved target. This means that you can use the same weighting methods for both temperature rating and portfolio coverage. Simply replace TS with PC in the formula.
You can currently use whichever method you find most suitable that is listed in the guidance on p 152 onwards. However, SBTi prefers them in revers order of the listing in the guidance, as we see ROTS and AOTS as more robust.
1 Like