The Science Based Targets initiative (SBTi) is a collaborative effort between several leading organizations aimed at driving ambitious climate action in the corporate sector. Founded in 2015, SBTi provides a framework and guidance for companies to set science-based targets (SBTs) to reduce greenhouse gas (GHG) emissions in line with the goals of the Paris Agreement. In this comprehensive guide, we will explore everything you need to know about SBTi, from its objectives and principles to its impact on corporate sustainability and climate change mitigation.
1. Objectives of SBTi
The primary objective of the Science Based Targets initiative is to mobilize the business community to take decisive action on climate change by setting ambitious and verifiable emissions reduction targets. SBTi aims to align corporate emissions reduction efforts with the latest climate science and the goals of the Paris Agreement, which seeks to limit global warming to well below 2 degrees Celsius above pre-industrial levels. By providing companies with a clear framework and methodology for setting science-based targets, SBTi aims to drive meaningful progress towards a low-carbon economy and a sustainable future.
2. Principles of SBTi
SBTi operates based on a set of core principles that guide its approach to setting science-based targets and evaluating corporate climate action. These principles include scientific rigor, transparency, ambition, and accountability. SBTi’s methodology is grounded in the latest climate science and emissions reduction pathways, ensuring that targets are aligned with the most ambitious efforts to limit global warming. Additionally, SBTi emphasizes transparency in target-setting and reporting, requiring companies to disclose their emissions data and target methodologies publicly. Ambition is another key principle of SBTi, encouraging companies to set targets that go beyond business as usual and contribute to transformative change in their industries. Finally, SBTi holds companies accountable for their commitments by providing guidance on target validation and requiring regular progress reporting.
3. Target Setting Process
The process of setting science-based targets involves several steps, beginning with the selection of a target boundary and scope that align with SBTi’s criteria. Companies must then calculate their baseline emissions inventory and determine their emissions reduction trajectory based on the latest climate science and sector-specific decarbonization pathways. Once the target is set, companies submit their target for validation by SBTi, which assesses its alignment with the goals of the Paris Agreement and provides feedback on target methodology and ambition. Validated targets are then publicly announced, and companies commit to implementing emissions reduction measures to achieve their targets over time.
4. SBTi Criteria
SBTi has developed a set of criteria to assess the alignment of corporate emissions reduction targets with the goals of the Paris Agreement. These criteria include relevance, ambition, and integrity. Relevance refers to the scope and boundary of the target, ensuring that it covers all relevant emissions sources and is consistent with the company’s overall sustainability strategy. Ambition assesses the level of emissions reduction proposed by the target, requiring companies to set targets that contribute to significant and transformative reductions in emissions. Integrity focuses on the credibility and verifiability of the target, requiring companies to use robust methodologies and transparent reporting practices.
5. Benefits of SBTi
Participating in the Science Based Targets initiative offers numerous benefits for companies, including enhanced reputation, risk mitigation, and access to new business opportunities. By publicly committing to ambitious emissions reduction targets, companies demonstrate their leadership and commitment to sustainability, enhancing their reputation among customers, investors, and other stakeholders. Setting science-based targets also helps companies identify and mitigate climate-related risks, such as regulatory changes, physical impacts, and reputational damage. Additionally, companies that align with the goals of the Paris Agreement are well-positioned to capitalize on emerging market trends, attract investment, and gain a competitive advantage in a low-carbon economy.
6. Sectoral Decarbonization Pathways
SBTi provides sector-specific guidance and decarbonization pathways to help companies set science-based targets that are appropriate for their industry. These sectoral decarbonization pathways outline the emissions reduction trajectories and best practices for each industry sector, taking into account technological advancements, regulatory frameworks, and market trends. By following these pathways, companies can identify opportunities for emissions reductions, prioritize actions, and benchmark their progress against industry peers. Sectoral decarbonization pathways also facilitate collaboration and knowledge sharing within industry sectors, accelerating the transition to a low-carbon economy.
7. Engagement and Support
SBTi offers a range of resources, tools, and support services to help companies navigate the target-setting process and implement emissions reduction measures effectively. These include guidance documents, webinars, training workshops, and peer-to-peer learning networks. SBTi also provides technical assistance and validation services to help companies develop robust target methodologies, calculate baseline emissions, and track progress towards their targets. Additionally, SBTi engages with stakeholders across the business community, including investors, policymakers, and civil society organizations, to raise awareness about the importance of science-based targets and promote collective action on climate change.
8. Global Impact
Since its inception, the Science Based Targets initiative has made significant strides in mobilizing corporate climate action and driving emissions reductions across industries and geographies. Thousands of companies worldwide have committed to setting science-based targets through SBTi, representing a diverse range of sectors, sizes, and regions. These companies collectively account for a significant portion of global emissions and have the potential to drive transformative change in their respective industries. By working together to reduce emissions and transition to a low-carbon economy, SBTi participants are making a meaningful contribution to global efforts to address climate change and build a more sustainable future.
9. Monitoring and Reporting
A crucial aspect of the SBTi process involves monitoring and reporting on progress towards achieving science-based targets. Companies are required to regularly measure and track their emissions, implement emissions reduction measures, and report on their progress towards their targets. SBTi provides guidance on emissions accounting methodologies, data collection, and reporting practices to ensure consistency and transparency across companies. By monitoring and reporting on progress, companies can assess the effectiveness of their emissions reduction strategies, identify areas for improvement, and demonstrate their commitment to climate action to stakeholders.
10. Recognition and Leadership
Participating in the Science Based Targets initiative demonstrates corporate leadership and commitment to addressing climate change, leading to recognition and accolades within the business community and beyond. Companies that set and achieve science-based targets are often recognized as leaders in sustainability and climate action, earning awards, certifications, and media attention for their achievements. Additionally, aligning with the goals of the Paris Agreement enhances companies’ reputations among customers, investors, and other stakeholders, positioning them as responsible and forward-thinking organizations. By demonstrating leadership on climate change, companies can inspire others to take action and drive positive change across industries and sectors.
Conclusion The Science Based Targets initiative plays a critical role in mobilizing corporate climate action and driving emissions reductions at scale. By providing a clear framework and methodology for setting science-based targets, SBTi empowers companies to take meaningful action on climate change and contribute to global efforts to limit global warming. Through sector-specific guidance, engagement, and support, SBTi helps companies navigate the target-setting process and implement emissions reduction measures effectively. By aligning with the goals of the Paris Agreement and demonstrating leadership on climate change, companies can enhance their reputation, mitigate climate-related risks, and access new business opportunities in a low-carbon economy. As more companies commit to setting science-based targets through SBTi, the initiative continues to play a pivotal role in shaping the future of corporate sustainability and climate change mitigation.
