Which tools to use when

Tools
1

Hi,

Currently in the process of settings targets for a bank.

We are a bit lost in the wood of tools available to set a target.
Currently, we came to the following:

(1) Mortgages (main bulk of the balance)
Pathway = SDA
Tool = Corporate Near-Term Tool v2.3 > Scope 1 & 2 Tool > SDA > Residential buildings

(2) Commercial real estate
Pathway = SDA
Tool = Corporate Near-Term Tool v2.3 > Scope 1 & 2 Tool > SDA > Services - Buildings

(3) Bonds in electricity generation
Pathway = SDA
Tool = Corporate Near-Term Tool v2.3 > Scope 1 & 2 Tool > SDA > Power
OR
Tool = Science-based Target Setting Tool - WB2C for FIs v1.3.1 > SBT Tool > SDA > Power

(4) Bonds in distribution of gas
Pathway = SDA?
Tool = ?

(5) Equity investments in “all other sectors”
Pathway = only TR or PC? Can’t we use emission reduction pathway?
Tool = Science-based Target Setting Tool - WB2C for FIs v1.3.1 > SBT Tool > Absolute Contraction Approach? What type of pathway is this, since it is nor SDA, nor TR nor PC?

Are these the correct tools? What about the open question marks?

Thank you for your reply.
Stef

2

Please see Table 5.3 of the Financial Sector Near-Term SBT Explanatory Document Version 2.0 and the Resources (target-setting tools) section of the FI webpage for a list of currently available tools.

The list of available target-setting methods can be found in Table 1 of the Financial Institutions Near-Term Criteria Version 2.0. The Absolute Contraction Approach is not available for scope 3, category 15 targets.