BASEDRATE CLIMATE ACTIONPRIVATE EQUITY SECTORSCIENCE-BASED TARGET GUIDANCEVERSION 1.0NOVEMBER 2021SCIENCEBASEDTARGETSCDPUnited NationsWORLDGlobal CompactRESOURCESINSTITUTEWWFPrivate Equity Sector Science Based TargetSetting GuidanceVersion 1.0Table of ContentsAcknowledgements...31.Executive summary....61.1Highlights1.2Context.....1.3Call to Action and Collaboration.......1.4Guidance Audience and Objectives....81.5Summary Target Setting Requirements..82.About This Guidance122.1Purpose of this Guidance......122.2 Guidance Development Process.............2.3Guidance audience..132.4 Project/Sector Context...142.5 What are Science-Based Targets?....173.Business Case for the Private Equity Sector to set SBTs...194.SBTiTarget Validation Criteria and Recommendations for PE Firms...............224.1 GHG Emissions Inventory and Target Boundary4.24.3 Emissions Accounting Requirements..244.4Target Formulation…4.54.6Scope 3-Portfolio Targets....274.7 Annual Disclosure and Implementation Reporting.......304.8 Recalculation and Target Validity....5.How to set SBTs for PE firms......5.1 Overview of scope 1,2 and 3 target setting requirements...........335.2Compile a GHG inventory ....33Private Equity Sector Science Based Target Setting Guidance1Version 1.0 November 2021sciencebasedtargets.org@ScienceTargetsm/science-based-targetsinfo@sciencebasedtargets.org