Science-based targets (SBTs) have become the global standard for credible target setting. Aligning business objectives with scientific evidence on the planet’s ability to tolerate environmental impacts, they provide companies with a clearly defined pathway to future-proof growth by specifying how much and how quickly they need to reduce their GHG emissions.
We help you set robust science-based targets to strengthen your commitment to managing climate-related issues and align your strategy with the goal of the Paris Agreement to keep global temperature increases to well below 2°C above pre-industrial levels and pursue efforts to limit warming to 1.5°C. The combination of our extensive experience and data modelling expertise provides the fast-track solution to credible science-based target setting.
CHALLENGE 1
Companies need to estimate the emissions reductions from existing carbon-cutting projects to understand what further action is needed to meet the SBTs. The environmental accounting can be challenging, as there are often a range of emissions-reduction projects that may be taking place in different regions, with different carbon intensities of the energy grid, and with different types of greenhouse gases (GHGs). Understanding the prevented carbon emissions alongside the financial investment for each project in the asset pool is an essential first step.
CHALLENGE 2
For many companies, this is a challenge because detailed supplier data is not always readily available. Supply chain data modelling tools can be used to quickly and accurately estimate Scope 3 emissions.
CHALLENGE 3
SBT methods vary by sector, and some calculate targets as a percentage reduction in absolute terms, while others provide results in relative terms, such as emissions intensity per unit of revenue. Getting the right technical advice and having access to specialized tools to estimate supply chain emissions can make the process faster and more efficient.
Setting an SBT helps companies understand the challenge of aligning business activities with the transition to a low-carbon economy, as they are increasingly held responsible by customers and other stakeholders for emissions from supply chain activities and product use. By holistically understanding what is needed to align with the low-carbon transition, companies can identify new business models and other innovative solutions.
SBTs enable companies to engage internal teams with a common data-driven goal and integrate their carbon reduction strategy alongside other business objectives. Some companies are applying internal carbon prices to highlight the progress of different teams and inform the business case for low-carbon investment.
Setting SBTs can help companies achieve substantial cost saving benefits through improved business efficiency and reduced energy consumption.
By setting an SBT, companies can publically demonstrate that they are taking their environmental responsibilities seriously. Companies can communicate to customers, investors and other stakeholders that they are ready to compete and succeed as a business in a low-carbon world.
The Science Based Targets Initiative (SBTI) expects to launch the first science-based global standard for corporate net-zero targets in November 2021.
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