That is where the SBT-Fi project comes in. “The methods for financial institutions we are developing are asset-class based working with five asset classes,” explains Nate Aden, research fellow at the Worlds Resources Institute (WRI). Mortgages, real estate, listed equity, corporate debt, and project financing make up the asset classes that will serve as a basis for the methods. Following a “road test”, the SBT-Fi will develop target validation criteria for financial institutions in setting science based targets, which will then be followed by a public consultation process. The final methods and criteria are scheduled to be launched in early 2020.
As participants leave the meeting room, continuing to talk about how scientific targets could be made to work in their daily business, SSFC programme director Aaron Maltais is pleased with having facilitated this exchange.
”It is far from straight forward what should count as science based targets for financial actors,” says Maltais, ”and it is great to see that this initiative is designed as a collaboration between researchers and practitioners to work through obstacles to setting meaningful targets.”