We would be keen to understand how the SBTi will track progress against target for those FIs that have validated targets. Will there, for example, be any action taken by the SBTi if they are not on track to reach a 2030 target for a small part of the portfolio, i.e. project finance SDA , but on track for other parts of the portfolio, i.e. portfolio coverage. And will there be action at the target date if target is not fully achieved.
We are trying to understand how to advice our clients when they are concerned about the feasibility of achieving elements of the target, especially those that are required by the guidance.
Hi Thora - thanks for your question. We currently developing a MRV protocol to answer these very questions about tracking progress. We will be launching a public consultation on methods available for tracking later in 2022 so would welcome your input once released.
For now, the SBTi will not take any action regarding the rate of target achievement. We hope to work through these questions in more detail as part of the MRV process, so we can give specific recommendations for each target setting method.
In the absence of annual target milestones. it may be useful to have submitting firms chose either a linear or exponential glide path declaration. This way intermediate targets and misses could monitored. 2050 or 2040 zero don’t mean anything until the journey starts. a linear or exponential glide path declaration means performance could be benchmarked via interpolation today.