SBTi validated companies and temperature rating

Should it be necessary to input reduction targets for those companies who already have a SBTi approved target?

I can see that although the tool identify companies with an SBT, they are still being assigned the default score in the tool.

It would really simplify the data collection process if we could focus on those companies without SBTs.

Hi Henrik,
This is a very good question and I’ll try to shed some light on the subject.

The temperature rating method doesn’t care if a target has been approved by the SBTi or not. It currently treats all targets equally. Even if there indications that this is the case, we currently don’t have enough data to suggest that SBTi approved targets are better at achieving real world emissions reductions. Hence, we can’t make any special allowance for SBTi approved targets.

Also, the temperature rating is a quantitative measure, whilst an SBTi approved target is a more in-depth qualitative and quantitative assessment of a company’s emissions reduction target, as is described in this FAQ “What is the difference between a temperature rating and a science-based target (SBT)?

The SBTi Finance Tool identifies SBTi approved targets, as it is not only calculating temperature scores, but also portfolio coverage. In the portfolio coverage methodology (see Guidance p 81), only SBTi approved targets are considered. Therefore, the tool needs to know which target have been approved by SBTi.

/Donald

Thank you Donald.

As the approved target is more in-depth and is monitored and reported on regularly, wouldn’t it be possible for the SBTi to publish the datasets required for the temperature rating tool on the “companies taking action” page for companies with an SBT?

This basic data should be readily available to the SBTi - but not easy to assess for any financial institution. I am concerned that the data process will take up too much time that should be used for more forward-looking actions by the financial institution.

Hi Henrik. The SBTi does have this information, but our current contractual obligations with the companies mean that we dont publish any detailed target information. We are working to fix this so that we can make a public dataset available in the format required by the SBTi tool. We are developing a new MRV framework and target tracking protocol which will be released next April as part of our annual resource update - we will work to have the target datasets public as part of that process

In the meantime, companies must disclose this information publicly, and report on annual progress. The majority of them do this through CDP, but others do so in their public reports.