In CDP’s latest temperature scoring dataset, the default temperature score has been updated from 3.2C to 3.1C. For companies with base years prior to this year, would they need to update their base year temperature score using the new ITR default score as the 3.2 to 3.1 change result in changes that are not a direct result of investees progress?
Currently the only ITR method approved for SBTi target setting is the CDP-WWF Temperature Rating method. This method still uses a 3.2C default score. This is the method SBTi uses in its SBTi Finance Tool.
Hi Donald, as of March 2023 the ITR was udpated to 3.1C
This is reflected in the most recent dataset
That is CDP data based on their version of the methodology, but that is not the same as the CDP-WWF Temperature Methodology. The latter has not changed its default score.
Can you explain the difference then in the methodologies? Because CDP states that they are still using the CDP-WWF Methodology to develop scores and markets their data set as compatible to the SBTi. The only difference being the update they made to the default ITR.
As the organization behind the methodology, I would argue their update to their process would constitute an update to the methodology, similar to PCAF, GHG Protocol, or even SBTi stating changes to their guidance. However, you are insinuating their change does not hold water and we should be using the 2.5-year-old guidance that they also developed rather than the most recently available which is based on more recent data and arguably more accurate. Correct?
SBTi has not developed the CDP or the CDP-WWF ITR methods. SBTi does not have control over how these methods are developed. These methods are developed by the respective organisations and partnerships. SBTi has this far only approved the CDP-WWF ITR method for target setting.
SBTi is developing meta criteria to be able to assess other methodologies, not just ITR. The first version is expected this year. When we have this we can assess and possibly approve other methods for targets setting.
SBTi is also developing an approval scheme for data providers’ ready-made company temperature ratings that uses the CDP-WWF method, to make sure these ratings are indeed following the CDP-WWF method. This should hopefully be out in a not too distant future, enabling FIs to acquire rating data from data providers, rather than calculating them from the ground up, and using these in their submission to SBTi for target validation.