The Science-Based Targets Initiative (SBTi) explained simply | free Excel goals & reduction pathway template
This article discusses the Science-Based Targets Initiative (SBTi), which defines and promotes best practices in emissions reduction and net-zero targets in line with the Paris Agreement goals helping to prevent the worst impacts of climate change. The SBTi provides technical assistance and expert resources to companies that set science-based targets in line with the latest climate science. The article explains the SBTi’s net-zero standard, science-based targets, and their importance.
It also discusses the benefits of adopting science-based targets for companies, the role of small and medium-sized enterprises (SMEs) in the initiative, and the process for setting science-based targets for companies and SMEs.
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What is the Science-Based Targets Initiative (SBTi)?
- Defines and promotes best practices in emissions reductions and net-zero targets in line with climate science.
- Provides technical assistance and expert resources to companies that set science-based targets in line with the latest climate science.
- Brings together a team of experts to provide companies with independent assessment and official validation of targets.
- The SBTi was the lead partner of the Business Ambition for 1.5°C campaign – an urgent call to action from a global coalition of UN agencies, business, and industry leaders, which mobilized companies to set net-zero science-based targets in line with a 1.5°C future. (About us, SBTi)
SBTi and the Paris Agreement
The Paris Agreement is an international treaty on climate change that is legally binding (UNFCCC). Its overarching goal is to hold “the increase in the global average temperature to well below 2°C above pre-industrial levels” and pursue efforts “to limit the temperature increase to 1.5°C above pre-industrial levels.”
Find more details about the topic here.
The Science Based Targets Initiative (SBTi) supports the objectives of the Paris Agreement by driving ambitious climate action in the private sector. It enables organizations to set CO2 emissions reduction targets based on scientific evidence.
The SBTi Net-Zero Standard explained
The Corporate Net-Zero Standard from SBTi is the sole framework worldwide for companies to establish net-zero targets in line with climate science. It provides guidance, criteria, and recommendations for corporations to set science-based net-zero targets that align with limiting global temperature rise to 1.5°C (THE CORPORATE NET-ZERO STANDARD, SBTi).
What are Science-Based Targets (SBTs)?
Science-based targets offer companies and financial institutions a well-defined plan to reduce greenhouse gas (GHG) emissions, which aids in mitigating the most severe effects of climate change and safeguarding business growth in the future (FAQs, SBTi).
To meet the objectives of the Paris Agreement, which require limiting global warming to 1.5°C above pre-industrial levels, targets must be in line with current climate science. If targets are aligned with the latest climate research, they are regarded as “science-based.”
The Importance of Science-Based Targets
The Paris Agreement sets a goal of limiting global temperature rise to below 2°C above pre-industrial levels, with a further aim to limit warming to 1.5°C. To avoid the catastrophic effects of climate change, the Intergovernmental Panel on Climate Change (IPCC) has warned that global warming must not exceed 1.5°C. Achieving this goal requires halving greenhouse gas emissions by 2030 and achieving net-zero emissions by 2050. Businesses have a critical role to play in reducing greenhouse gas emissions and building a resilient, zero-emissions economy. This action must be based on science and led by pioneering companies, which will help peers, suppliers, and customers follow suit and drive governments to take bolder action.
The Benefits of Adopting SBTs for companies
SBTi encourages companies from all sectors and of all company sizes to join the movement and commit to setting a science-based target. SBTi acknowledges differences between business areas, which is why SBTi is developing sector-specific pathways.
The SBTi is especially keen to welcome companies in the highest-emitting sectors, who play a crucial role in ensuring the transition to a zero-carbon economy.
Reducing greenhouse gas emissions in line with climate science can benefit both the planet and businesses. Science-based target setting aligns with future growth, saves money, provides resilience against regulation, boosts investor confidence, spurs innovation and competitiveness, and demonstrates concrete sustainability commitments to increasingly-conscious consumers. Companies going through the target validation process also receive detailed feedback and support from SBTi’s technical experts. Signing the SBTi commitment letter means immediate recognition as “Committed” on their website, as well as on the CDP, UN Global Compact, and We Mean Business websites.
SMEs and SBTi
The global reaction to climate change will heavily rely on small and medium-sized enterprises (SMEs) (Farsan, 2020). They make up around 90% of businesses and 50% of all jobs worldwide, according to the World Bank. They are acutely aware of the risks posed by climate change and are becoming increasingly interested in the opportunity it offers to act on it.
ℹ️ 🏢 A SME is defined as a non-subsidiary, independent company that employs fewer than 500 employees.
This does not include financial institutions (FIs) and oil and gas (O&G) companies.
SMEs have two target-setting options
Near-term targets:
The Science-Based Targets Initiative (SBTi) encourages companies to set near-term scientific goals for absolute scope 1 and 2 GHG emissions reduction by 2030 from a predefined base year (SMEs, SBTi). However, the lack of resources and capabilities to set scope 3 targets may be a challenge for small and medium-sized enterprises (SMEs). As a result, SMEs are not required to set near-term targets for their scope 3 emissions. Instead, they must commit to measuring and reducing these emissions, which can still contribute significantly to the overall goal of reducing greenhouse gas emissions in line with climate science. This approach allows SMEs to participate in the initiative and make concrete sustainability commitments, despite the challenges they may face in setting science-based goals.
Net-zero targets:
To be eligible to set a net-zero target, SMEs must first set near-term targets aligned to a 1.5°C pathway.
Net-zero targets include:
- Long-term science-based targets, which are absolute scope 1, 2, and 3 GHG emissions reduction goals that should be achieved by 2050, from a predefined base year
- A commitment to neutralise any unabated emissions when the long-term science-based target is achieved.
Where to Disclose?
The SBTi recommends publicly disclosing inventory and progress against published targets through standardised, comparable data platforms such as CDP’s climate change annual questionnaire, though annual reports, sustainability reports, and the company’s website are acceptable.
How to achieve Science-Based Targets?
The Business Ambition for 1.5°C campaign is an urgent call-to-action campaign led by the SBTi, UN Global Compact, and the We Mean Business Coalition calling for companies to set emissions reduction targets in line with limiting global warming to 1.5C.
Companies can commit to Business Ambition for 1.5°C by signing up to the Net-Zero Standard and committing to set a target in line with a 1.5C and net-zero future. By doing so, they will be recognized on the SBTi and UN Global Compact websites as having committed to the most ambitious science-based targets.
Most companies follow this five-step process to set scientific goals:
- Commit: Submit a letter establishing your intent to set a science-based target
- Develop: Work on an emissions reduction target in line with the SBTi’s criteria
- Submit: Present your target to the SBTi for a complete validation
- Communicate: Announce your target and inform your stakeholders
- Disclose: Report company-wide emissions and track target progress annually (Step by Step Process, SBTi)
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The Climate Control Center also has project management features that allow sustainability managers or people in charge of driving the company’s decarbonization efforts to assign mitigation measures to colleagues inside or outside the sustainability department and monitor their actions.
Finally, the platform provides forecasting and overview graphs that help to quickly determine the company’s current status and progress.
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A Science-Based Target (SBT) is a well-defined plan to reduce greenhouse gas (GHG) emissions that is in line with current climate science. To meet the objectives of the Paris Agreement, which require limiting global warming to 1.5°C above pre-industrial levels, targets must be in line with current climate science. If goals are aligned with the latest climate science, they are regarded as “science-based.”
One of the benefits of using SBTi is that it aligns with future growth, save money, provide resilience against regulation, boost investor confidence, spur innovation and competitiveness, and demonstrate concrete sustainability commitments to increasingly-conscious consumers. In addition, reducing greenhouse gas emissions in line with climate science can benefit both the planet and businesses.
Small and medium-sized enterprises (SMEs) can participate in the Science-Based Targets Initiative (SBTi). The SBTi encourages SMEs to set near-term science-based goals for absolute scope 1 and 2 GHG emissions reduction by 2030 from a predefined base year. However, the lack of resources and capabilities to set scope 3 targets may be a challenge for SMEs. As a result, SMEs are not required to set near-term targets for their scope 3 emissions. Instead, they must commit to measuring and reducing these emissions, which can still contribute significantly to the overall goal of reducing greenhouse gas emissions in line with climate science. This approach allows SMEs to participate in the initiative and make concrete sustainability commitments, despite the challenges they may face in setting science-based targets.
The Science Based Targets Initiative (SBTi) supports the objectives of the Paris Agreement by driving ambitious climate action in the private sector. It enables organizations to set CO2-reduction targets based on scientific evidence. Goals must be in line with current climate research, and if they are, they are regarded as “science-based.” The Paris Agreement sets a goal of limiting global temperature rise to below 2°C above pre-industrial levels, with a further aim to limit warming to 1.5°C. To achieve this goal, businesses have a critical role to play in reducing greenhouse gas emissions and building a resilient, zero-emissions economy.
Sources
- Science Based Targets initiative. About us. https://sciencebasedtargets.org/about-us#:~:text=The Science Based Targets initiative (SBTi)%3A,with the latest climate science
- United Nations Framework Convention on Climate Change. The Paris Agreement. https://unfccc.int/process-and-meetings/the-paris-agreement
- Science Based Targets initiative. Net-zero. https://sciencebasedtargets.org/net-zero
- Science Based Targets initiative. FAQs. https://sciencebasedtargets.org/faqs#what-are-science-based-targets
- Farsan, H. (2020, October 23). Smoothing the way for small and medium-sized businesses to set science-based climate targets. Science Based Targets initiative. https://sciencebasedtargets.org/blog/smoothing-the-way-for-small-and-medium-sized-businesses-to-set-science-based-climate-targets
- World Bank. SME finance. https://www.worldbank.org/en/topic/smefinance
- Science Based Targets initiative. Small and medium enterprise (SME) target-setting process. https://sciencebasedtargets.org/small-and-medium-enterprise-sme-target-setting-process
- Science Based Targets initiative. Step by step process. https://sciencebasedtargets.org/step-by-step-process
