SDA target setting: is weighted intensity allowed as a metric?

Hi there,

When calculating emissions intensity, the guidance states that this should be:
SUM[attributed emissions]/SUM[attributed activity].

Would the SBTi accept a weighted intensity as an alternative? This would be:
SUM[emissions intensity X outstanding amount/total portfolio value]

An example in a power portfolio would be SUM[gCO2e/kWh of a company X outstanding amount in company/total outstanding amount in portfolio].

Many thanks,

Ana

Hi Ana, thanks for the question. We recommend as a priority to use the PCAF approaches which use the attributed emissions and attributed intensity approach that you highlighted.
However it is also possible to use other weighted intensity approaches such as based on portfolio weightings that you outlined.
The PCAF method is preferred in order to maintain consistency between financed emissions reporting and target setting, but we also recognise that for target setting FIs may want to use other metrics for portfolio steering.