What are Science-based targets (SBTs)?

In our previous article on ESG we learnt that organizations start by setting ESG goals to steer their actions towards sustainability. Have you wondered how these goals are actually set? Is there a statistically proven way to set these goals?

Yes, globally organizations are setting their ESG or Net-Zero goals by aligning with the Science-Based Targets Initiative (SBTi). In this article lets learn about this initiative.

What are Science-based targets (SBTs)?

Science-based targets (SBTs) are greenhouse gas (GHG) emission reduction targets that are set by companies to align with the goals of the Paris Agreement on climate change. SBTs are based on the latest climate science and aim to limit global warming to well below 2 degrees Celsius above pre-industrial levels, pursuing efforts to limit warming to 1.5 degrees Celsius.

The SBTs initiative is led by the Science Based Targets initiative (SBTi), which is a collaboration between CDP, the United Nations Global Compact (UNGC), World Resources Institute (WRI), and World Wildlife Fund (WWF). The SBTi provides companies with a framework for setting SBTs that are ambitious, transparent, and grounded in scientific evidence.

Lets now see how a science-based target is set.

How to set an SBT?

Setting a science-based target (SBT) involves a rigorous and structured process that is based on the latest climate science. Here are the key steps to follow when setting an SBT:

Scope definition: Determine the boundaries of the target, including the emissions sources to be covered (e.g. direct emissions from owned or controlled sources, indirect emissions from purchased electricity, etc.) and the timeframe for achieving the target.

Target Setting: Calculate the company's current emissions baseline, and then determine the level of emissions reductions required to align with the latest climate science. The target should be consistent with limiting global warming to well below 2 degrees Celsius above pre-industrial levels, pursuing efforts to limit warming to 1.5 degrees Celsius.

Roadmap Development: Develop a clear and specific plan for achieving the target, including both short-term and long-term actions. The roadmap should consider the company's business objectives, technology options, and stakeholder expectations. 

Progress Monitoring: Establish a system for monitoring and reporting progress towards the target, and communicate the results to stakeholders in a transparent and credible way.

Verification: Finally, submit your target to the Science Based Targets initiative (SBTi) for validation. The SBTi will review your target and provide feedback to ensure it meets their criteria for scientific rigor and ambition.

It's important to note that setting an SBT can be a complex process, and it's recommended that companies seek guidance from experts or engage with the SBTi to ensure that their target is robust and credible.

In conclusion, by setting an SBT, companies are committing to reducing their GHG emissions in a way that is consistent with the latest climate science, and are sending a strong signal to stakeholders that they are taking action to address climate change.

I hope you liked this article on SBTs. Let me know in the comments if you want targets calculated for a company as an excel model?

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