SDA for power generation baselining: For a PE firm, understand that it needs to include 100% of its power generation companies when calculating using the SDA to set targets. When setting a baseline using FY2023, they recently sold a large emitting company in early FY2024, which is now no longer part of their portfolio. Hence, do they need to re-baseline? Or would it be safe to say they may not need to? Under p62 of the SBTi PE guidance, it comes under ‘recommends’ not as a ‘requirement’ or criteria.
Reviewing previous discussions around this, it seems it can be interpreted that re-baselining is only ‘required’ when structural changes takes place, not for the usual activity of buying/selling portfolio company?