Service Description

SBTI FI The SBTi Finance sector guidance, released in 2022, enables financial institutions, such as banks and insurance companies, to set SBTs and have them validated by SBT: This enables the alignment of investment activities to the goals of the Paris Climate Agreement The SBTiis due to release updated near term target criteria (v2) as well as publishing Net-Zero (long-term) target-setting quidance in 2024. VOLUNTARY INTERNATIONAL EMISSIONS HIGH REPUTATION Who reports? Any financial institution aiming to reduce emissions in line with a 15Cwarming scenario The SBTi defines a company as a financial institution if 5% or more of its revenue or assets come from business relating to the arrangement and execution of financial and monetary transactions, including deposits, loans, investments, and currency exchange What is reported? The SBTihas 3 methods that link Fis' portfolios with cimate stabilisation pathways, each of which can be used for one or more asset class Sectoral decarbonisation approach-involves the setting of emissions- based physical intensity targets for real estate and mortgage-related investments/loans. Also applies to power generation, cement, pulp and paper, transport, iron and steel, and buildings sectors within corporate instruments. SBTi Portfolio Coverage Approach an engagement target to encourage a portion of investees to set SBT-approved SBTs The Temperature Rating Approach-to determine the current temperature rating of their portfolios and take actions to align them to long-term temperature goals via engagement with portfolio companies Fls are also required to set targets for their own operations in line with at least a well-below 2C pathway. Benefits Aids the decarbonisation of investment activities Helps align investments and lending to the goals of he Paris Agreement. Engage investees to set targets