Portfolio Coverage and short loan durations

Criteria
1

Hello fellow SBTi enthusiasts!

I’m currently involved in creating a target submission for a financial institution. Typically, this institution doesn’t have a high number of repeat customers due to its specific client focus.

If we establish an SBT (Science-Based Target) for our corporate loans, let’s say aiming for 33% of them to commit to SBTi within the next five years. We will initiate engagement with our clients, but it’s possible that our portfolio will change over time, leading to some clients who adopted SBTi targets no longer being associated with us after five years. Is there a way to still include these clients in our target, even if they are no longer part of our portfolio after five years?

Thanks in advance,

Arend

2

Hi Arend, to note, SBT Portfolio Coverage is calculated based on portfolio companies with validated science-based targets, rather than those that commit to setting them. Progress is also calculated based at a point in time each year based on the portfolio at that point in time. However, the FI is free to report other metrics separately in its own communications, e.g., the historical number of companies that it has successfully engaged to set science-based targets (including companies that are no longer part of the portfolio).