SBTs for renewable energy assets

Private Equity
1

Hello,

We are a private equity firm currently considering setting SBTs at portfolio level. We invest in renewable energy assets and understand those are considered electricity generation assets (and should therefore set SBTs using the SDA).

  1. Could you please confirm if it is mandatory for them to set targets (given their already limited sc 1 & 2 footprint and positive contribution especially)? or would there be an alternative for us when setting portfolio targets?

  2. In case setting SBTs for all our renewable energy assets using the SDA is mandatory, which scopes should be included for this type of companies ? Would scope 3 emissions need to be taken into consideration?

Thank you,

2

Thanks for posting!

Renewable energy assets still need to be covered by targets.

However, FIs that only finance renewable electricity projects may set targets to continue doing so. For example, an appropriate target would be: [Financial Institution] commits to continue providing electricity generation project finance for only renewable electricity through 2030.

Otherwise, using the SDA is mandatory and scope 1+2 should be included.

1 Like
3

Thanks for the answer!