Do you have guidance on which sectors you regards as being above 40% Scope 3 materiality? Data availability is a challenge, so it would be useful to understand if a sector based approach could be used?
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…and even why scope 3 would be important?
If you target portfolio coverage, you would aim for 100% SBT coverage by 2040 (at the latest). Hence all companies would have to work on their own SBTs under specific guidance from the SBTi.
Section 5 of the SBTi Target Validation Protocol presents information on the applicability of available science-based target setting methods to various sectors and ongoing sector development work, which can help inform FIs’ engagement efforts with borrowers and/or investees. For example, scope 3 targets may be required for specific sectors. Otherwise, if a company’s relevant scope 3 emissions are 40% or more of total scope 1, 2, and 3 emissions, a scope 3 target is required. SMEs, however, are not currently required to set scope 3 targets but must commit to measure and reduce their scope 3 emissions.