Sector Guidance

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?

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