Sector Guidance

Methods
1

1- How are companies for which sector guidance has not been released advised to set an SBT?
2- Are the SDA sectoral decarbonisation pathway standards the same research that goes into setting SBT guidance for a given sector?
i.e. is the ability to use SDA and PC constrained by the same sector guidance?

2

Hi there, thanks for the question. when no specific sector guidance exists i.e. no SDA method, FIs have to use portfolio coverage or temperature rating. Sector guidance is used to produce specific physical intensity pathways, these dont exist for all sectors/ For companies who are in sectors that dont have sector pathway/sector guidance, they can also use an absolute contraction approach when they set their own target. Therefore, the ability to use SDA and PC is not constrained by the same sector guidance

3

Hej Eoin, thank you for the good responses so far. I have just stumbled upon this thread and wonder: 1) where no SDA’s are available in SBTi - can pathways such as TPI be used instead of PC/absolute contraction? 2) with the new 1,5 pathways recently published, should we rather waite with setting a goal, until these are included in your set-up? Are we going to need to re-calculate our target when you have updated the pathways? Thank you in advance.

4

Hi Flo_1, thanks for the question and your patience as we follow up with these comments.

  1. unfortunately, we do not yet accept any other sector pathways like TPI,
  2. you can still move ahead and set targets along well-below 2C pathways that can be approved. These can then be updated to 1.5C targets when the sector guidance and pathways are finalised.