Science-Based Targets initiative (SBTi)

SBTi sets company goals aligning with global measures to mitigate climate change.

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What is it?

A framework that helps companies set greenhouse gas emissions reduction targets in line with climate science.

Who is it for?

The Science-Based Targets initiative (SBTi) is a collaborative effort that involves multiple organizations and stakeholders aiming to encourage businesses and financial institutions to set ambitious climate targets that are aligned with the latest climate science. It provides guidance, resources, and a framework for companies to develop science-based targets to reduce greenhouse gas emissions. The initiative is for:

  1. Businesses
  2. Companies looking to align their emissions reductions with climate science and demonstrate leadership on climate action.
  3. Investors
  4. Financial institutions seeking to assess the climate-related risks and opportunities within their investment portfolios.
  5. Governments
  6. Public sector leaders aiming to engage with the private sector and facilitate their transition toward net-zero emissions.
  7. Non-Governmental Organizations (NGOs)
  8. Advocacy groups that promote climate action and support for corporate accountability in emissions reductions.
  9. Research Institutions
  10. Organizations and researchers studying climate change impacts and mitigation strategies.
  11. Consumers
  12. Individuals who support sustainable practices and are interested in the climate impact of the companies they engage with.

Overall, SBTi aims to mobilize the private sector to take significant action against climate change through the adoption of science-based targets.

When was it introduced?

The Science-Based Targets initiative (SBTi) was launched in 2015. It aims to motivate companies to set greenhouse gas emission reduction targets that are science-based, meaning they align with the level of decarbonization necessary to keep global temperature increase within 1.5 to 2 degrees Celsius compared to pre-industrial levels.

The SBTi has undergone various updates and revisions since its inception to improve its methodologies and frameworks. Notable updates include:

  • 2019: The launch of the SBTi's Net-Zero Standard, which provides guidance for companies in setting targets for achieving net-zero emissions.
  • 2020: The SBTi expanded its criteria to encompass a wider range of industries and incorporated more specific guidance for sectors such as finance and water.

For the most accurate and current updates on the initiative, it's best to consult the official SBTi website or their announcements, as they regularly revise their guidelines and methodologies based on scientific findings and stakeholder input.

Why is it important?

The Science-Based Targets initiative (SBTi) is crucial for multiple key reasons:

  • Climate Change Mitigation: SBTi offers a framework that enables organizations to establish greenhouse gas emission reduction objectives that align with the latest climate science. This shows how businesses can participate in limiting global warming to 1.5 degrees Celsius beyond pre-industrial levels by aligning their strategies with the Paris Agreement.
  • Credibility and Accountability: SBTi boosts the integrity of corporate sustainability initiatives by basing goals on scientific data. Companies that dedicate themselves to science-based objectives exhibit a discerning and transparent approach to lowering their environmental footprint.
  • Sector-Specific Guidance: SBTi provides methodologies tailored for various industries. This facilitates organizations' goals setting by considering their individual circumstances, challenges, and advantages.
  • Investor and Stakeholder Confidence: As investors and consumers increasingly value sustainability, organizations that fulfill approved science-based objectives can improve their reputation, attract investment, and amplify customer loyalty among eco-conscious consumers.
  • Behavior Change and Innovation: Committing to science-based targets can motivate organizations to innovate and discover new methods to reduce emissions, enhance efficiency, and implement sustainable practices which contribute to a greener economy.
  • Global Collaboration: SBTi stimulates collaboration among businesses across various sectors and regions, encouraging collective action in combating climate change and promoting knowledge sharing.
  • Long-Term Vision: By emphasizing a scientifically diligent approach to emission reduction, SBTi encourages organizations to consider their long-term sustainability strategies, instigating systemic transformation within the broader economy.

In conclusion, SBTi plays a pivotal role in guiding businesses towards impactful actions that can significantly contribute to global climate change mitigation.

What do organisations need to do?

To comply with the Science-Based Targets initiative (SBTi), organisations must commit to setting and achieving climate goals aligned with the latest climate science. The key steps include:

Commit to Setting Science-Based Targets

Organisations must publicly commit to setting science-based targets that align with the goal of limiting global temperature rise to well below 2�C, with efforts to limit it to 1.5�C, as outlined in the Paris Agreement.

Develop Targets

Companies must develop specific, measurable, and time-bound emissions reduction targets across their operations and value chains. These targets should be aligned with SBTi�s criteria and based on credible scientific methodologies.

Submit Targets for Validation

Once targets are developed, organisations must submit them to SBTi for validation. SBTi reviews the targets to ensure they are in line with the required climate benchmarks and provides feedback if adjustments are needed.

Implement and Track Progress

Organisations must actively work toward achieving the validated targets by implementing emissions reduction strategies and monitoring progress. This includes tracking greenhouse gas emissions and reporting performance to stakeholders.

Regularly Update and Review Targets

To maintain compliance, organisations are expected to regularly review and update their targets as new data and climate science emerge, ensuring ongoing alignment with the latest scientific insights.

What are the benefits?

The Science-Based Targets initiative (SBTi) offers several benefits for organizations aiming to reduce their greenhouse gas emissions and combat climate change. Here are some of the key benefits:

  1. Credibility and Accountability:Setting science-based targets demonstrates a commitment to environmental responsibility and provides a credible framework for tracking progress against climate goals.
  2. Risk Management:Establishing science-based targets helps organizations identify and mitigate risks associated with climate change, such as regulatory changes, market volatility, and resource scarcity.
  3. Enhanced Reputation:Aligning with science-based targets can improve a company's reputation, appealing to customers, investors, and stakeholders who prioritize sustainability and climate action.
  4. Operational Efficiency:Implementing strategies to meet science-based targets often leads to increased energy efficiency, waste reduction, and cost savings in operations.
  5. Market Competitiveness:Companies that adopt science-based targets may gain a competitive edge by being ahead of regulatory requirements and meeting the growing demand for sustainable practices.
  6. Investor Confidence:As investors increasingly consider environmental, social, and governance (ESG) factors in their decision-making, having science-based targets can attract investment and support from stakeholders.
  7. Employee Engagement:Organizations that commit to credible climate action can enhance employee morale and attract talent who value sustainability and corporate responsibility.
  8. Framework for Action:The SBTi provides a structured approach for setting, assessing, and achieving emissions reduction targets, making it easier for organizations to plan and implement their strategies.
  9. Global Collaboration:Joining the SBTi connects companies with a network of organizations committed to similar goals, facilitating knowledge sharing and collaboration on climate action initiatives.
  10. Alignment with Global Goals:Setting science-based targets aligns organizations with international climate goals, such as the Paris Agreement, fostering a collective effort to limit global temperature rise.

By participating in the SBTi, organizations can not only contribute to global climate efforts but also realize operational and strategic benefits that enhance their overall business resilience and sustainability.

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