Temperature Scoring - data provider example

Hi all,

In the excel file “data provider example” dowloaded by SBTi-finance-tool/data_provider_example.xlsx at master · ScienceBasedTargets/SBTi-finance-tool · GitHub, why for the same company e.g Company S does the value “ghg_s1s2” in the “fundamental data” worksheet differ from the sum of values “base_year_ghg_s1” and “base_year_ghg_s2” in the “target data” worksheet? Which is the reference year for the value “ghg_s1s2” in the “fundamental data” worksheet? Base year or else? Thanks a lot and in advance

Vasso

Hi @Vasso_H,
Firstly, those example files do not include any real data, but random numbers, just to make sure the data format is understood and to be able to run and test the tool without having to first acquire data and format it to fit the tool. So these files are simply for demo and testing. So, it is possible that some data points in these files don’t always match.
Having said that, as per the tool legend, ghg_s1s2 is the latest reported GHG data and the base_year_ghg_s1 is the reported GHG at the base year. So, unless the base year and the last reported year are the same, it is likely that these numbers would be different.

Hi Donald,

Τhanks a lot for your immediate response! I have one last question about the 2nd part of your reply ( tool legend). In case a FI uses 2020 as a base year for SBTi setting and a company X financed by the FI has set an SBTi target by using 2019 as a base year. At ghg_s1s2 column, should we enter X’s emissions for 2020 and at the base_year_ghg_s1 column, X’s emissions for 2019 or not?

Thanks again and in advance

Vasso

Hi @Vasso_H,
I may have misunderstood your question, but any emissions should always be the emissions of the portfolio companies in the input. All of the data in the input files should only be related to the companies in the portfolio and not to the FI managing/owning the portfolio.

So, if FI-A has a 2020 base year and FI-A happens to finance FI-B (or a company in any other sector), you as FI-C should enter FI-A’s base year and corresponding GHG-data in your calculation for the temperature rating of your portfolio, if you have FI-A in your portfolio. You should not add FI-B’s data directly. And FI-A should enter FI-B’s base year and corresponding GHG data in its calculation of the FI-A portfolio temperature rating.

Having said that, in the case of collective investment schemes/pooled investments where you as FI-C invests in a fund that FI-A manages which holds equity or bonds issues by FI-B, you should as far as possible do an x-ray on FI-A’s fund and then enter FI-B’s data in your portfolio as if you hold those securities out right.

Τhanks a lot Donald for your immediate response.

Sorry, maybe I didn’t explain myself well. Let’s give you a numerical example.

Company X has set a target to reduce its S1 emissions by 30% up to 2030 by using 2020 as a base year. Its S1 emissions for 2020 amounts 10 kt CO2.

Company X is also financed by a FI that wants to set a target for 2030 for its business loans portfolio by using 2019 as a base year. As far as I understood, TS method will use the 2019 financial data and emissions of the companies financed by FI in 2019, in order to calculate the unique temperature score of FI’s business loans portfolio by applying eg ECOTS method. Company’s X S1+S2 emissions for 2019 amounts 15 kt CO2.

So, as far as I understood for company X in the column titled “ghg_s1s2” I have to input 15 kt CO2 and in the column “base_year_ghg_s1” 10 kt CO2. Is this correct?

Thanks a lot and in advance (and really sorry for bothering you again :slight_smile: )

Vasso