A financial group we follow for setting SBT, owns a society that is industrial (does not do any financial activity). How do we account for that? Does it count as if in the perimeter as financial activity or do we consider it separately (and set different targets)?
Thanks for your question and your patience as we follow up.
The industrial company can be included in the FIs targets as a fully owned subsidiary, or as an investment, depending on the arrangement.
Essentially the industrial company could set its own target (and report it separately if it wishes), and this would be covered under the FI’s portfolio level targets.
Thank you for your answer Eoin. Actually, we are currently having a similar situation (although it is real estate instead of industry).
However, we were wondering if this Real Estate Subsidiary of a financial institution would have to report following the SBTi FI Standard or the “standard” SBTi Standard in case they want to set their own targets?