I was just wondering what are some of the measures I can, or need to take, if and when a new methodology has come out (for example, a new guidance on how to set targets for sovereign debts)?
Do I need to resubmit a target covering the new asset class immediately, or will I be allowed to update my targets following the review schedule (every 5 years at a minimum) at my own pace?
Thanks for giving us a guidance to rely on,
hope to hear from you soon.
Welcome to the community.
The short answer is that is the latter. Your target will be valid until it expires, regardless of new methods and criteria released after your submission. When you submit a new target at the end of your current target you have to use the framework that is the current framework at that time. So, it is not until then that you have to implement new methods and criteria.
Having said that, you can naturally upgrade your target ahead of its expiration, if you want, as new methods become available.
Thanks for getting back to me, much appreciated!
May I further ask what decides the expiration date of a set target? From what I’ve gathered, the commitment automatically expires if a target is not submitted within two years’ time, but I haven’t figured out when or how a target might expire?
It should generally be the earlier of the target year or in five years (i.e., the update cycle).