What flexibility will be allowed for different FIs looking to set a portfolio coverage target

We are currently developing the minimum target coverage requirement for private equity firms as they were not a primary audience of the project in the pilot phase. In theory, the SBT portfolio coverage method allows a lot of room for flexibility as it only asks for an incremental increase of SBT companies based on where the FI is starting out. For example, a financial institution starting with 10 percent coverage in 2020 would need to increase coverage by 4.5 percent per year (90/ (2040 – 2020) = 4.5) and reach at least 32.5 percent (10 + [5 x 4.5] = 32.5) coverage by 2025.

For immature companies, they may go through the streamlined SME route through SBTi.