Hi,
If a financial institution’s loan portfolio covers electricity generation under both the project finance and corporate loan asset classes, should these be considered separately when using the SBTi’s SDA tool for power, or should the inputs for total activity output (MWh) and generation-related emissions (tCO2e) be combined? Additionally, should the results for each asset class be reported separately?
Many thanks
Tom
Hello Tom,
The best practice is that financial institutions separate their emissions and outputs from project finance: electricity generation from those on corporate loans: electricity generation when using the SDA tool. In the same line, the target resulting from the use of the SDA tool and the annual reporting should be presented separately for each asset class, aiming for transparency.
Hi Monica, thanks very much for your response and the clarification.