Can FIs use the target update service to add C1-14 targets after their S1,S2 and C15 targets are approved? If yes, under which conditions and at what cost?
Here some additional information and more detailed questions:
- We understand that setting targets for C1-14 is recommended but not mandatory for financial institutions (see Fi-R9)
- We understand that the ‘SBTi target update service USD 4,750‘ includes ‘ update or edit previously approved targets in other ways’
- Does this include the addition of recommended targets, e.g. for C6- business travel?
- Can this addition be made at any point after the submissions and approval of the initial targets?
- Are there any additional requirements e.g. around base year, target year, cost, etc?
We would very much appreciate your guidance on this question.
Many thanks for your help.
The update service is primarily designed for updating existing approved targets, so this would have to cover S1+2, and S3 cat 15, therefore this would not include the addition of optional targets. We recommend that FIs set these targets but they would not have to have them officially validated by the SBTi at this point as they remain optional.
For net-zero targets, we expect that all categories of scope 3 will have to be covered, so it might make more sense to wait until you are establishing net-zero targets to cover these additional scope 3 categories
Thank you for the answer you gave above. On this topic I would like to ask you the following questions concerning target updates:
- If a FI has committed to SBT targets in 2019 and it hasn’t yet submitted the target, does it have to re-do the commitment? (once it has passed 24 months). What shall be the process to do this?
- The first guidance for SBT setting for FI I think it was published in April 2021 (FINANCIAL SECTOR SCIENCE-BASED TARGETS GUIDANCE). Does this mean that FI can count 24 months after this date to submit the target?
I’ll wait for a feedback.
Once again, many thanks
The 2 year commitment process starts from Oct 2020 (for those FIs who committed before this date), and for all other FIs who committed after this date, the commitment period runs for 2 years. Typically we do not allow FIs to recommit, and instead the commitment will be removed from the website. However FIs can of course still submit at anytime even without a valid commitment.
The first guidance was actually published in Oct 2020, hence the 24 months is counted from this date for all FIs who committed prior to this.
Thank you very much for the reply!
Just another quick question: is it mandatory for FI (namely a bank) to submit ALL required scope 3 asset class categories? Or can submit, for example, half of the required assets in one stage and later on (one year after, for example) the other half?
Thank you again for any input you can provide
Hi Antonio, all in-scope asset classes must be submitted together, so we would not be able to do this in stages.