In lieu of a sector specific 1.5D method, could a bank use the absolute contraction approach method 1.5D to set absolute reduction targets for their mortgage portfolio?
Thanks for your question and your patience as we follow up.
We currently do not accept the absolute contraction method for financed emissions, and therefore for all non-SDA sectors, these would be expected to be covered with a temperature rating or portfolio coverage target.
As part of our net-zero FI foundations work, we are exploring all target setting methods (including absolute contraction) to determine their suitability for future inclusion into the framework. Please see our net-zero work for further info: https://sciencebasedtargets.org/net-zero-for-financial-institutions
Thanks Eoin. We developed target options using both the Wb2D SDA for FIs and 1.5 ACA (translated to intensity) and found that the 1.5D ACA method turned out to be slightly more ambitious (56% vs 53% reduction by 2030 in kg CO2-e/2). Would it be appropriate for the bank to align ambition with this slightly higher target?
I would be interested in a follow up 
The SBTi still does not accept ACA for financed emissions at this time. While the minimum ambition for a SDA target can calculated using the SBTi Target Setting Tool, higher ambition (in physical intensity terms) is encouraged.