What is the SBTi?
The Science Based Target Initiative (SBTi) is a partnership between Carbon Disclosure Project (CDP), the United Nations Global Compact, the World Resources Institute (WRI) and the World Wildlife Fund (WWF). The SBTi was established to promote ambitious climate action in the private sector by enabling organisations to set science-based emission reduction targets in line with the Paris Agreement goals.
The SBTi provides scientific research, guidance on emission reduction best practices and technical assistance in setting science-based targets. The launch of the SBTi Net-Zero Standard ahead of COP26 created the world’s first framework for setting company net-zero targets.
Who uses science-based targets in line with the SBTi?
Science-based targets help companies determine how much and how fast they need to reduce their greenhouse gas emissions to limit warming to 1.5°C. A science-based target enables companies to guard against climate regulations and increases investor confidence.
By early 2023, more than 4,000 companies worldwide – representing more than a third of the market capitalisation of the global economy – have already set or committed to targets by working with the SBTi. Both large companies and SME’s from all sectors can set science-based targets (SBTs).
Setting these targets is far-reaching and requires a company to be transparent in tracking emissions and use an efficient reporting system.
Why is it important?
The objective of the SBTi is to influence entire industries, through companies involved, to follow the same ambitious path for emission reductions.
Setting a science-based target has a positive effect on brand reputation, investor confidence, increases innovation, generates bottom-line savings and gives a competitive edge.