The Bank has operating control over several companies. For the purpose of SBTi target setting, can the Boundary be set discretionary at either Group or stand-alone level or is the bank obliged to set targets on the Group level only?
Please refer to FI-C5 and Section 4.1 (on organizational boundary) in the Near-Term Financial Sector SBT Guidance.
FI-C15: It is recommended that FIs submit targets only at the parent- or group-level, not the subsidiary level. Parent companies must include the emissions of all subsidiaries in their target submission, in accordance with boundary criteria above. In cases where both parent companies and subsidiaries submit targets, the parent company’s targets must also include the emissions of the subsidiary if the subsidiary falls within the parent company’s emissions boundary, given the chosen inventory consolidation approach.
Hello all,
Apart from the FI-C5 of the Near-Term Financial Sector SBT Guidance, the FINZ-C1 of the Net Zero standard for FIs which is currently under consultation follows the same approach. However, it is still unclear to me whether it is possible for a Bank to set targets at a Bank-level or must follow a Group consolidation approach and include the emissions associated with all the subsidiaries. If a Bank-alone option is preferred will it be valid for the target submission and validation process?
Thank you in advance.
Targets must be set at a legal entity-level. While it is strongly recommended to submit targets at the group level, it is currently possible for a legal entity that is a subsidiary to set targets.
1 Like
Thank you very much for the fast response!