Charles Dubouix Last update 06/03/2022
GHG accounting (3/3): Setting target with the SBTI Measuring is good … Setting targets is better
KEY TAKEAWAYS
- The Science Based Targets Initiative (SBTi) provides businesses with a science-backed process for achieving carbon emission reductions in line with the latest climate science. It helps companies shape long-term business strategy and reduce exposure to future carbon emissions-related regulation.
- The SBTi covers reduction targets for Scope 1 and Scope 2 emissions and Scope 3 emissions from supply chains. Companies in all sectors, except the oil & gas and public sectors, can participate in the SBTi process.
The Science Based Targets Initiative (SBTi)
The Science Based Targets Initiative (SBTi) is a global body set up to enable businesses to set ambitious emissions reduction targets in line with the latest climate science. It is a joint initiative developed by CDP, UN Global Compact, WWF and WRI.
It provides businesses with a clear, science-backed process (based on the GHG protocol) for achieving gross carbon emission reductions over a five to ten-year period. SBTi uses proven climate science to help businesses define how much they need to reduce their greenhouse gas emissions, and how quickly, in order to meet the ambition of keeping global temperature increases within 1.5°C.
More than 3000 businesses and financial institutions are working with the SBTi to reach net-zero emissions, and that number is increasing rapidly. There are several benefits:
- Science-based targets have become the accepted benchmark for taking climate action.
- Pursuing emissions reduction drives innovation and shapes long-term business strategy.
- Reducing emissions in line with science reduces exposure to future carbon emissions-related regulations.
- Science-based carbon reduction is increasingly considered by financial institutions.
- Creating buy-in from stakeholders helps companies achieve their targets.
What is the process?
- Step 1: Commit - submit a letter establishing your intent to set a science-based target.
- Step 2: Develop - collect data and calculate emissions so that reduction targets can be set in line with SBTi criteria.
- Step 3: Submit - present your target to SBTi for official validation.
- Step 4: Communicate - inform stakeholders and officially announce the target.
- Step 5: Disclose - report company-wide emissions and progress towards your target annually.