Target setting - parent group and subsidiary

SBTi commitments and submissions
1

Hi all,

My client is a FI and the majority of its carbon emission comes from Scope 3 Cat. 15. I have already used S&P’s database to check the portfolio coverage % of investee with approved SBT target. We will use the “Temperature Scoring and Portfolio Coverage Tool for Financial Institutions” to double check the alignment.

Just wondering how SBTi define the following scenarios

  1. If a parent company has committed to an SBTi target, is the target also applicable to its subsidiaries?
  2. Conversely, if a subsidiary sets its own science-based emissions reduction target through the Science Based Targets initiative (SBTi), is the target automatically applicable to the parent group? Is there any official document explains these scenarios?

In addition, if there are two different companies with similar names, can the tool identify the right company?

Thanks!

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