At present PC is allows you to absorb your portfolio’s SBTs or influence them to get SBT certified. Has SBTi considered how the rise of competing methodologies / standardizations might limit a company that set an PC method? Wouldn’t it be safer to just use Temperature Rating since you can mix and match across methods?
Welcome to the community @ECOgoals2,
I understand your point of view. From the SBTi’s perspective using the portfolio coverage method we know what has gone into the targets with SBTi-approval both from a quantitative and qualitative perspective, knowledge that we don’t have for other methods. Hence, the temperature rating method relies on a quantitative assessment only.
However, as SBTi is method agnostic, SBTi for Finance is currently developing meta criteria to be able to allow other robust methods to be used to set SBTi-approved targets. And as the SBTi is also continuously developing both the wider finance framework and methods, future updates of portfolio coverage and temperature rating could work a bit differently.
But, you are right. Temperature rating is currently the most flexible and future proof method. However, there are situations in certain portfolios where a portfolio coverage method is more practical and robust.
1 Like