Will the SBTi review/approve other initiatives

Using the portfolio coverage method, we only include investments with a SBT.

However, some companies do not have a SBT and will most likely not look toward SBTi as they focus on alternative initiatives such as the UN-convened Net-Zero Banking Alliance.

Have the SBTi considered reviewing and/or cooperating with alternative initiatives with similar carbon reduction aim, to approve the adoption of alternative commitments into the portfolio coverage method?

Hi @HenrikThomsen,
Currently, SBTi isn’t validating other targets, as you point out. You can however set targets including companies without SBTi approved targets with the temperature rating method, which is analysing the ambition of all public targets and gives them a temperature rating.

I take some comfort in the “currently” and would obviously recommend a co-operation between initiatives - especially those with an aim of “net-zero emissions by 2050” and “intermediate targets for 2030 or sooner using robust, science-based guidelines” as stated by the Net-Zero Banking Alliance. Having adopted one climate initiative would most likely make companies reluctant to adopt a second initiative (unless they are aligned in objectives).

As previously stated, the temperature rating requires a lot of data and quality assurance to get understandable results from the temperature calculation. Furthermore its interpretation for target setting compared to portfolio coverage is confusing. For example:

  • Siemens has a SBTi-verified 1.5°C target. However, its mid-term Scope 1+2+3 TR is 2.07°C
  • JPMorgan does not have a SBT but is signatory to the NZBA. Its mid-term Scope 1+2+3 TR is 1.74°C

So in terms of target setting, Siemens counts positive in our portfolio coverage and JPMorgan would not. Using the temperature rating method, none is currently aligned with our 1.5°C target, but JPMorgan improves the total portfolio temperature rating more than if we held Siemens.

Hi @HenrikThomsen,

Please see this thread for the difference between SBTi approved targets and the ratings from the temperature rating method.