Portfolio Temperature Rating - Scope 3

Methods
#1

Hi,

In the SBTi Guidance for Portfolio Temperature Rating it states ’ Financial institutions’ borrowers’ and/or investee’s targets shall include coverage of scope 1 and 2 emissions, as well as scope 3 emissions when their scope 3 emissions are more than 40 percent of total scope 1, 2, and 3 emissions’

Please can you explain why Scope 3 should be included in PTR (where above 40%)? What is the rationale?

Thanks

#2

This rationale is based on the same criteria applied for in the corporate target setting framework, when if a companies scope 3 emissions represent more than 40% of its total emissions, it must set a scope 3 target.
For the portfolio temperature rating methodology, if a company whose scope 3 emissions are more than 40% of total, and does not have a scope 3 target, then they will receive a default 3.2C rating for that company’s scope 3 temperature

1 Like
#3

Thanks Eoin, so really it is about ensuring that companies are taking accountability for the full value chain, where it is impactful.