Hi Donald, in terms of the tool not working for portfolio coverage targets, see my question here: Companies with approved SBTs but no ISIN number (Portfolio Coverage approach) - Tools - Science Based Targets for Financial Institutions. Because the ISIN number is used to define whether the company has a target, and it doesn’t exist for all companies, plus is outdated, the tool doesn’t provide an accurate baseline for PCA.
I’m not sure if you’ve completely answered my question about the method for PCA. The formulas in Table 8 of the link you sent refers to formulas for the temperature rating approach not the PCA (it contains Ts in each formula). My main question is, for the PCA, do we use these formulae but remove the Ts? I.e. for ROTS, if we used the formula, the baseline would look like ((𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 𝑣𝑎𝑙𝑢𝑒/𝐶𝑜𝑚𝑝𝑎𝑛𝑦 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 × 𝐶𝑜𝑚𝑝𝑎𝑛𝑦 𝑒𝑚𝑖𝑠𝑠𝑖𝑜𝑛𝑠) of all companies with SBTs)/ 𝑇𝑜𝑡𝑎𝑙 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 𝑜𝑤𝑛𝑒𝑑 𝑒𝑚𝑖𝑠𝑠𝑖𝑜𝑛𝑠 of all companies in the portfolio.
Or can we simply use:
revenue of companies with SBTs/ revenue of all portfolio companies
This latter approach doesn’t use the Table 8 but seems more inline with some of the target phrasing