What are Science-Based Targets (SBTs)?
Science-based targets (SBTs) are corporate climate goals that align with the latest climate science. They aim to limit global warming to well below 2°C, preferably 1.5°C, above pre-industrial levels, in line with the Paris Agreement. Unlike traditional corporate sustainability goals, SBTs are rigorously defined based on what the science says and what is needed to prevent the worst consequences of climate change.
Adopting SBTs can reduce businesses' environmental impact, enhance their reputation, improve their resilience to future regulations, and create long-term value.
Glossary of key terms
Understanding the following key terms is not only beneficial but essential for any business looking to set and achieve SBTs. This knowledge will empower you to make informed decisions and navigate the complexities of sustainability strategies.
1.5°C
Definition: The target of limiting global temperature rise to 1.5°C above pre-industrial levels, as the Intergovernmental Panel on Climate Change (IPCC) recommended.
Importance: Staying within this threshold is crucial for avoiding the most catastrophic impacts of climate change. This is a key focus of Science-Based Targets.
1.5°C pathway
Definition: A trajectory of emissions reductions that aligns with limiting global temperature rise to 1.5°C.
Importance: Businesses aligning their targets with a 1.5°C pathway commit to the most ambitious and scientifically rigorous climate action.
Baseline year
Definition: The specific year chosen as the starting point for measuring greenhouse gas emissions and setting reduction targets.
Importance: Choosing an appropriate baseline year is critical for accurately tracking progress towards emission reduction goals.
Benchmark
Definition: A standard point of reference against which data and results can be compared or assessed. It's often used in setting performance targets.
Importance: Benchmarks help businesses gauge their progress and ensure they are on track to meet their SBTs.
Carbon credit
Definition: A permit allowing a company to emit a specific amount of CO2 or other GHGs. Companies can trade these credits in carbon markets.
Importance: While not a substitute for direct emission reductions, carbon credits can offset emissions that cannot be immediately reduced.
Carbon dioxide equivalent (CO2e)
Definition: A standard unit for measuring carbon footprints, which expresses the impact of different greenhouse gases in terms of the amount of CO2 that would have the same global warming effect.
Importance: CO2e is used to provide a standard scale for comparing the emissions of various greenhouse gases.
Carbon footprint
Definition: The total GHG emissions from a company's operations, products, and value chain, measured in CO2e.
Importance: Understanding your carbon footprint is essential for setting targets and improving sustainability and efficiency.
Carbon neutrality
Definition: Achieving a balance between emitting and absorbing carbon from the atmosphere in carbon sinks.
Importance: While more ambitious than carbon offsetting, achieving carbon neutrality is often a pivotal milestone to net zero.
Carbon offset
Definition: A reduction in GHG emissions to compensate for emissions produced elsewhere.
Importance: Carbon offsets can help businesses mitigate their environmental impact when direct emission reductions are impossible.
Climate action plan
Definition: A detailed strategy outlining a businesses steps to reduce carbon emissions and reach its climate goals.
Importance: A well-crafted climate action plan is crucial for guiding your business toward meeting its Science-Based Targets.
Climate transition plan
Definition: A strategic document outlining how a company will shift its business model to align with a low-carbon future.
Importance: Climate transition plans ensure long-term business viability in a decarbonising economy.
Decarbonisation
Definition: Reducing carbon emissions through technological, behavioural, or structural changes.
Importance: Decarbonisation is central to meeting Science-Based Targets and achieving net zero.
Greenhouse Gas Protocol
Definition: The leading global standard for measuring, reporting, and managing greenhouse gas emissions, widely adopted across industries to ensure consistent and transparent accounting practices.
Importance: The Greenhouse Gas Protocol provides the framework for measuring emissions, which is essential for setting and achieving Science-Based Targets.
Long-term targets
Definition: Emission reduction goals set for the distant future, often extending 20-30 years ahead.
Importance: Long-term targets are essential for achieving deep decarbonisation and aligning with global climate goals.
Near-term targets
Definition: Emission reduction goals set for the near future, typically within 5-10 years.
Importance: Near-term targets provide immediate goals for businesses to work towards, helping to ensure they are on track to meet long-term objectives.
Net zero
Definition: Balancing emitted and removed GHGs to achieve no net increase in atmospheric GHG levels.
Importance: Critical for climate action and enhancing business resilience and reputation.
Paris Agreement
Definition: An international agreement established in 2015, in which nations committed to keeping global temperature rise below 2 °C while striving to limit it to 1.5°C.
Importance: The Paris Agreement sets the framework for global climate action, and Science-Based Targets are aligned with its goals.
Renewable energy
Definition: Energy from sources that are naturally replenishing, such as solar, wind, and hydroelectric power.
Importance: Switching to renewable energy helps businesses reduce Scope 2 emissions, which is important for businesses aiming to significantly lower their Scope 2 emissions.
Scope 1 emissions
Definition: Direct GHG emissions from company-owned or controlled sources, like vehicles and on-site fuel combustion.
Importance: These are under your direct control, making them easier to reduce through measures like adopting electric vehicles.
Scope 2 emissions
Definition: Indirect GHG emissions from purchased electricity, steam, heating, and cooling.
Importance: Though indirect, these can be minimised by improving energy efficiency and using renewable energy.
Scope 3 emissions
Definition: Indirect GHG emissions from a company's value chain, including suppliers and customer activities.
Importance: Often the largest share of emissions, requiring collaboration with partners to reduce.
Target validation
Definition: Having your Science-Based Targets reviewed and approved by the Science-Based Targets Initiative (SBTi) to ensure they align with climate science.
Importance: Target validation ensures your goals are credible, robust, and aligned with global climate targets.
Temperature alignment
Definition: The extent to which a company's climate targets align with a specific global temperature goal, such as 1.5°C or 2°C.
Importance: Temperature alignment ensures that a company's actions align with global efforts to limit climate change.
Value chain emissions
Definition: Emissions that occur along the entire value chain of a product, including both upstream and downstream activities.
Importance: Addressing value chain emissions is critical for companies aiming to reduce their total carbon footprint, particularly their Scope 3 emissions.
Why these terms matter for UK businesses
Understanding and utilising these terms is not just an academic exercise—it's a strategic necessity. For UK businesses, aligning with SBTs can provide several advantages:
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Strategic importance: Familiarity with these terms enables you to set meaningful and achievable climate goals that align with global standards, positioning your business as a leader in sustainability.
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Compliance and competitiveness: With the UK government tightening regulations on carbon emissions and increasing pressure from stakeholders, businesses that proactively manage their carbon footprint and set SBTs are better equipped to stay ahead of compliance requirements and keep a competitive edge.
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Business benefits: Beyond regulatory compliance, reducing emissions can lead to lower energy costs, improved operational efficiency, and stronger customer loyalty, all of which contribute to long-term business success.
Conclusion
Understanding and adopting Science-Based Targets is crucial for UK businesses as the world moves towards a more sustainable future. By familiarising yourself with key terms like Scope 1, Scope 2, and Scope 3 emissions, Net-Zero, and Carbon Footprint, you'll be better equipped to set and achieve ambitious climate goals. Now is the time to take the next step—start your sustainability journey today by learning more, assessing your emissions, and committing to SBTs.
Ready to make a difference?
Calculate your company's carbon footprint and explore how SBTs can fit into your business strategy. The road to sustainability starts with understanding—and acting on—the key concepts that will shape the future of your business and the planet. Please speak to one of our experts today!
30/08/2024
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