Science Based Targets Initiative explained...

What is the SBTi?

The Science-Based Targets Initiative (SBTi), founded in 2015, is a partnership between the Carbon Disclosure Project (CDP), the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF).  

In the lead-up to the Paris Climate Change Conference in 2015, the SBTi’s aim was simply to help companies set targets to start reducing greenhouse gas (GHG) emissions. The SBTi has since developed, with the aim to mobilise the private sector, encourage urgent climate action and guide companies when setting science-based targets. 

So, what is a 'Science-Based Target'?

A science-based target is a clear pathway defined for companies and financial institutions to reduce GHG emissions, prevent the impacts of climate change and help to future-proof business growth. 

They are classed as ‘Science-based’ because they are aligned with the most up-to-date climate science and are in line with achieving the goals of the Paris Agreement – limiting global warming well below 2 degrees above pre-industrial levels and pursuing efforts to limit warming to 1.5 degrees.

Who can join the initiative by setting a target?

Financial institutions and companies across all sectors are eligible to get involved in the initiative by setting a Science-based target. To assist companies, SBTi has developed sector-specific guidance for varying business areas. 

Companies operating in the highest-emitting sectors can join (which the SBTi encourages) because those companies will play a crucial role in ensuring a zero-carbon economy is achieved. However, the validation of the fossil fuel sectors targets has been paused as well as commitments made by fossil fuel companies. The SBTi is progressively working on a target-setting methodology for this sector. Additionally, SBTi doesn’t assess targets for cities, local governments, public sector and education institutions, or not-for-profit organisations.

Throughout 2021, the number of companies in the SBTi’s doubled to 2,253 – 1,082 companies with targets approved by the initiative and 1,171 companies committed to setting a science-based target. By the end of 2022, over 4,000 companies were involved. As of 16th August 2023, 5910 companies in total were involved with 3278 having approved targets.

Why setting a Science-Based Target is beneficial?

The obvious benefit of setting and committing to a science-based target is it helps an organisation work towards reducing GHG emissions. This helps protect the planet from the damaging effects of climate change – which aren’t slowing down.  

As the environment benefits, so does your business; starting with the reputation of your brand. As consumers become more conscious of their decisions and the effect it leaves on the environment, the more they will become aware of the brands that are taking positive action and those that are not. 

Ethical consumption continues to thrive, and businesses should look to showcase their sustainability efforts. The SBTi found that “79% of corporate executives surveyed found a strengthened brand reputation to be one of the most significant business benefits for their company from committing to the Science Based Targets initiative.” 

Investors continue to extend their interest in environmental policies within businesses, the SBTi also revealed that “52% of execs say their science-based target commitment has boosted investor confidence in their business.”

The benefits don’t stop there, businesses can become more resilient against environmental regulations, more opportunities to innovate and maintain or gain competitive advantage. 

Finally, setting science-based targets helps increase bottom-line savings, with another SBTi finding stating "Almost a third (29%) are already seeing bottom-line savings thanks to their ambitious commitment.” 

Getting started with Science-Based Target setting...

Trident is already assisting businesses with their net zero aspirations, helping businesses calculate their carbon footprint and explore emission reduction opportunities to help reduce the impact on the environment. 

Our experts will help you to: 

• Understand your emissions and determine the appropriate calculation methodology for scope 3 emissions relevant to your business 
• Calculate your carbon footprint and develop a carbon reporting strategy 
• Develop your net zero strategy 
• Create your carbon reduction plan 
• Support carbon reduction projects 

When developing a net zero strategy, setting a science-based target and committing to it as a part of your strategy is one of the best ways to contribute to global emissions reductions and future-proof your business. Book a call with one of our net zero experts to discuss how we can help your business deliver science-based targeting.