Setting Emissions for High Rate Growing FI

SBTi commitments and submissions
1

Hello!

I would like to ask some questions about setting SBT targets for rapidly growing financial institutions. In this case, the company is categorized as one of Argentina’s unicorns, having a growth rate between 50-100% over the previous year.

  1. What happens if I fail to set a target because my emissions are increasing at the same rate as my company is growing?
    2.a. How are SBT targets estimated for these types of companies (High rate growing companies)?
    2.b. How do you set SBT targets for Unicorn companies?
  2. What happens if my baseline scenario changes (i.e. I remove 1P because double accounting has not taken place)?

Thank you in advance for your quick response.

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2

I would also like more information about this question as it pertains to the company I am currently working. Thanks

3

In order to avert massive global warming, global emissions must reduce in absolute terms & companies are generally tasked with decoupling business/financial growth from GHG emissions. Some first steps are to identify the hotspots in baseline footprint, assess interconnectedness of GHGs and business growth, and identify key levers for emissions reductions, e.g. transitioning to renewable electricity, technology shifts, energy efficiency increases.

Specifically for target setting - we are aware the business nature of company’s economic growth and M&A possibilities. Below are some generic principles we’d suggest to take into account when designing and submitting your SBT:

  • Companies are welcome to utilize physical intensity target, economic intensity target, and Supplier or customer engagement targets for their Scope 3 target setting, if in need to associate growth strategy with their targets (details see Corporate Manual from page 23).
  • Companies are also welcome to utilise sector specific intensity target when the company lies within a specific sector that the SBTi has already designed a SDA for. Available sector pathways and target methods are laid out from page 40 on our Protocol.
  • When any acquisition and merger happens that trigger significant GHG inventory baseline change (>5%), a mandatory recalculation and assessment for resubmission is needed (details see C26, C27 in Protocol).