If I understood it right, FIs are allowed to set physical/economic intensity targets for Scope 1+2. The guidance refers to the Excel-Tool for companies “SBTi-target-setting-tool” for developing such targets. However, in this tool, the only way to develop physical/economic intensity targets is for Scope 3 emissions, not for Scope 1 + 2. How do I have to apply the tool for FI’s Scope 1+2 targets, if I aim to develop economic/physical intensity targets for those emissions?
Hi Eva - thanks for your question.
There are both power-specific SDA approach and absolute contraction listed for target setting methods in the SBT target setting tool.
The absolute contraction approach can use data expressed in physical or economic intensity. You may read about this in more detail in the fourth and fifth paragraphs of section 4.3.1 on pages 45 & 46 of the guidance. Currently, only absolute contraction should be used for scope 1+2 targets. While physical intensity can be used in some cases, it is usually not relevant for FIs, and they should instead focus on absolute targets and renewable electricity targets.