Will the FI already submitted the WB2DS be required to submit a 1.5 degree pathway at some point?

Criteria
1

Hi there,

It seems that FIs can still submit WB2DS targets after July 2022 and Well-below 2C levels will still be permitted according to the following thread: Cut-off date for well-below 2 degrees

Will the FI which already submitted the WB2DS financed emissions targets be required to submit a 1.5 degree pathway at some point or to align the targets with a 1.5 pathway? I’m curious about this because when the ‘Final Financial Net-Zero Standard’ is published Q1 2023, it will require financial institutions to submit net-zero standard at some point.

Thanks in advance,
Sea Jin

2

Hi Seajkim,
Yes, the FI framework is expected to be fully consistent with the corporate framework for S1+2 later this uear meaning the well-below 2C targets for S1+2 will have to be updated to be aligned with the minimum 1.5C ambition.

3

Hi Eoin,

When will this requirement come into effect? In the following post, I am reading your response as saying that WB2DS targets will still be acceptable post July: Cut-off date for well-below 2 degrees - SBTi commitments and submissions - Science Based Targets for Financial Institutions

Best regards,

Ana

4

Hi Ana, these will be acceptable post July as we have not communicated that the FI methodology will be included in the criteria update for companies.
However we expect to change this later this year and bring in the 1.5C minimum ambition for financial institutions also for their S1+2. FIs who are currently developing their targets can still set WB2C for S1+2, will soon appear unambitious once all new FIs will start setting 1.5C targets - therefore we recommend that all FIs set 1.5C targets now to avoid this

5

Dear Eoin - that sounds great - but how should 1,5 degree targets to be set when no 1,5 degree SDA guidance is available?

6

Currently, FIs cannot set 1.5C aligned targets for their portfolios with the SDA method - as we only have the well-below 2C pathways. However both the portfolio coverage and temperature rating can be used to set 1.5C aligned targets