Retailer with Credit Offering - are they an FI?


I am working with a digital retailer to set an SBT. The retailer also provide financial services, offering customers credit on purchases. The credit is only available for their products. Over 35% of revenue was from financial services.

Would they be classed as a retailer or a financial institution? If they are classed as an FI, would they be required to only report on their investments (i.e. the emissions arising from the direct use of sold products) and could exclude other scope 3 categories?

Thanks for posting.

Please refer to this thread for the response to a similar question.

For your specific case, a key consideration is whether the credit is short-term or for consumers (vs. corporate entities), which would currently be optional or out of scope under the SBTi FI Guidance.

Hi Howard,

Thanks for your reply, it has helped clarify the situation. Their financed emissions would be out of scope under the FI guidance but would form part of their direct use of sold product emissions so we need to include them anyway.