Temperature Rating Approach - temperature scores based of actual progression?

I am wondering about the Temperature Rating Approach and if SBTi has any method for allowing a FI to have trust in their investments temperature rating?

My understanding is that the TRA method is based of the target formulations as stated in FI-C17.3. But are there any criterias that changes the temperature score based of climate reduction outcomes?

For example if a company has a climate target with high ambition that renders in a low temperature score but the yearly follow-up shows that emissions aren’t decreasing in that pace or perhaps even increasing.

In the Temperature Rating Methodology under 2.1.5 Target Progress the following formulation indicates that there are such criterias:

2.1.5. Target progress
Scores will be based on the ambition over the timeframe of the target (base year to target year),
and not just on the forward-looking portion (current year to target year). Therefore, companies
reporting some progress towards achieving their targets (as long as it is not 100% achieved) **will **
not be penalised for early action. Target must not already have already been completed i.e. a
target that has already been achieved would not be acceptable for rating.

Are there any mechanisms in place from SBTi for companies and their temperature rating based of the company´s eventual lack of progress?

@Donald @HowardS or any other SBTi affiliates do you have any info regarding this matter?

Hello Anders,

Thanks for your question. SBTi is developing a monitoring, reporting, and verification framework to address the progress or lack thereof of companies progress towards their targets. It is still in development currently and will be rolled out in the future. You may read more about this workstream here: Measurement, reporting and verification (MRV) - Science Based Targets