Today, the fight against climate change has become a global priority, and businesses play a crucial role in this effort. In this context, the “Science Based Targets initiative (SBTi)” has emerged as a tool to guide organizations in reducing their greenhouse gas (GHG) emissions in alignment with the latest climate science.
SBTi is an organization that drives corporate climate action. It was created through a collaboration between the Carbon Disclosure Project (CDP), the United Nations Global Compact, the World Resources Institute (WRI), and the World Wide Fund for Nature (WWF).
SBTi aims to mobilize the business sector to take urgent action against climate change by encouraging companies to set greenhouse gas (GHG) emission reduction targets based on climate science. These targets are aligned with the Paris Agreement, which seeks to limit global temperature rise to below 2°C, preferably to 1.5°C, above pre-industrial levels, as well as to achieve Net Zero or climate neutrality by 2050.
This initiative was launched in 2015 and has become the global body responsible for providing methodologies and criteria for setting science-based emission reduction targets. By the end of 2023, 4,205 companies and financial institutions had validated science-based targets through SBTi.
SBTi provides a clear and structured framework for companies to set science-based emission reduction targets. The process involves several key steps:
While the previous steps do not incur any costs for organisations, validation does have an associated fee. The validation fees depend on the type of target being validated as well as the type of company since small and medium-sized enterprises (SMEs) have a reduced fee.
In order to set a long-term target, the short-term target must be developed and validated.
4. Communication: The company must calculate and communicate its total carbon footprint to the initiative and make it public.
5. Monitoring: It is necessary to report the company's emissions annually and review them.
To implement SBTi, organisations must follow a series of steps and consider several key aspects:
Before committing to SBTi, companies must conduct a thorough assessment of their GHG emissions. This involves calculating their carbon footprint across the three scopes defined by the Greenhouse Gas Protocol.
Once the company has a clear understanding of its emissions, it must set reduction targets aligned with SBTi criteria. These targets must be measurable and quantifiable, with defined and ambitious deadlines, and aligned with the latest climate science
With the targets set, companies must develop concrete strategies to achieve them. This may include improvements in energy efficiency, electrification of processes and transportation, transition to renewable energy sources, innovation in processes and products, and collaboration with suppliers and customers to reduce emissions in the value chain.
The implementation of strategies must be accompanied by a robust monitoring and measurement system. Companies should regularly track their emissions, assess progress toward their established targets, and adjust strategies as needed.
Finally, transparency is a crucial aspect of SBTi. Companies that wish to join this initiative must publicly communicate their targets and progress, participate in the validation process, and report annually on their emissions and mitigation actions. The targets will be published on the SBTi website and can also be included in the sustainability report, the organisation's website, and other environmental reports such as the Carbon Disclosure Project (CDP).
The adoption of science-based targets through SBTi offers numerous benefits for companies.
Regarding credibility and reputation, companies that adopt SBTi targets are seen as sustainability leaders, enhancing their reputation among customers, investors, and employees. Additionally, transparency in GHG reduction efforts builds credibility by demonstrating the company's commitment and helps prevent Greenwashing.
Despite its benefits, implementing SBTi can present challenges. The process can be complex, especially for companies with no prior experience in emissions management. It requires a significant investment of time and resources and may necessitate substantial changes in operations and company culture. Additionally, long-term projections can be challenging in a constantly evolving business environment.
SBTi represents a powerful tool for companies to align their emission reduction strategies with global climate goals. By providing a clear and scientifically backed framework, SBTi enables organizations to make a significant contribution to the fight against climate change while positioning themselves for success in a low-carbon economy. Implementing SBTi requires serious commitment and a strategic approach, but the potential benefits, both for businesses and the planet, are substantial.
Science Based Targets ¿Qué son? - Grunver Sostenibilidad
Ambitious corporate climate action - Science Based Targets Initiative
