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What is the SBTi?
The Science Based Targets initiative (SBTi) is a collaborative effort between CDP, the United Nations Global Compact, World Resources Institute (WRI), and the World Wide Fund for Nature (WWF). It is not a law but a framework and guideline that helps companies set ambitious carbon reduction targets in line with the latest climate science. The main focus is to enable companies to align their strategies with the objectives of the Paris Agreement.
The core objective of SBTi is to encourage companies to cut their Scope 1 and 2 emissions by at least 50% by 2030, moving towards 100% Net Zero emissions by 2050.
This aligns with the IPCC’s 1.5°C trajectory to prevent the worst effects of climate change.
SBTi Criteria
The SBTi has established robust criteria that follow a set of four clear steps:
- Aim for Rapid and Significant Emissions Reductions: Encouraging companies to set ambitious targets for cutting emissions at a rate consistent with the need to limit global warming.
- Set Both Short- and Long-Term Targets: Companies are required to have clear, time-bound targets for both the short and long term.
- No Net Zero Aspirations Until Long-Term Targets Are Achieved: Companies must focus on actual emissions reductions before setting Net Zero targets.
- Focus on Beyond Value Chain Mitigation (or BVCM): Companies should strive to make positive impacts beyond their immediate operations and value chain.
How the SBTi compares to other Climate Frameworks
- SBTi and IPCC: While the SBTi provides guidelines and tools for companies to set science-based targets, the Intergovernmental Panel on Climate Change (IPCC) is a scientific body that assesses climate change research. The SBTi uses IPCC's findings as a basis for its guidelines.
- SBTi and Oxford Principles: The SBTi guides companies in setting emission reduction targets grounded in climate science, while the Oxford Principles offer direction on responsible carbon offsetting within net zero strategies. SBTi focuses on direct emission reductions, and the Oxford Principles on integrating offsets effectively.
- SBTi and Net Zero: Net zero refers to the balance between the amount of greenhouse gas emissions produced and the amount removed from the atmosphere. SBTi guides companies on how to reach these Net Zero goals through scientifically informed targets.
By leveraging IPCC research for setting robust targets and adopting the Oxford Principles' offsetting approach, SBTi offers a comprehensive framework for businesses to reduce emissions scientifically and balance remaining emissions through credible offsets, aligning corporate strategies with global climate goals.
Companies Setting SBTi Targets
A diverse range of companies around the world set SBTi targets, including multinational corporations, small and medium-sized enterprises, and companies across various sectors. These targets vary based on the company’s size, industry, and emission profiles.
Some notable examples include:
- Bayer AG, who have a near term target of 1.5ºC by 2029, along with a Net Zero commitment.
- BMW Group, who have a near term target of 1.5º/Well-below 2ºC by 2030, along with a Net Zero commitment.
- Lufthansa Group, who have a near term target of well-below 2ºC by 2030, along with a Net Zero commitment.
The SBTi database contains information about SBTi targets that have been set by other companies.
How to Set SBTi Targets for Your Company
To set SBTi targets, a company needs to:
- Commit: Publicly commit to setting science-based emissions reduction targets.
- Develop Targets: Develop targets in line with SBTi criteria and methodologies.
- Submit for Validation: Present these targets to the SBTi for official validation.
- Communicate: Announce the target to all relevant stakeholders
- Implement and Disclose: Implement the targets and annually disclose progress
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You can visit the SBTi website for more information on this. Alternatively, the European Covenant of Companies for Climate and Energy has put together a guide to Science-Based targets.