Science Based Targets
Guiding global industries on setting ambitious targets for decarbonization, the Science-Based Targets initiative (SBTi) is a partnership between the Carbon Disclosure Project (CDP), the United Nations Global Compact, World Resources Institute (WRI) and the Worldwide Fund for Nature (WWF). It aims to keep global temperature increases well below 2°C, compared to pre-industrial temperatures. By directing organizations to set science and data-based targets for carbon emission reductions, SBTi enables them to tackle climate action in the transition to a Net-Zero economy. Close to a thousand organizations across the world are leading the transition for decarbonization by setting carbon emissions reduction targets grounded on climate science through the SBTi.
The business case for setting SBTi is outlined
by three incentives for organizations to adhere to:
Driving
innovation
Increasing transparency for shareholders
Improving profitability and competitiveness
Committing to SBTi begins with the identification of the different types of emissions, considering the three scopes defined by the Greenhouse Gases Protocol Corporate Standard:
Scope 1 emissions
are all direct emissions that come from activities performed by the organization or under its control, which includes fuel combustion on site such as burning fossil fuels to power generators, gas boilers, fleet of vehicles and air-conditioning leaks.
Scope 2 emissions
are all indirect emissionsfrom electricity purchased and used by the organization whereby emissions are created during the energy production and eventually used by the organization.
Scope 3 emissions
relate to the organization’s emissions within its supply chain. These are usually the greatest share of its carbon footprint, covering emissions associated with business travel, purchased goods and services, procurement, waste, and water. Of companies who have set science-based targets, over 90% of them primarily address Scope 3 reductions.
Once all scopes are identified and reported on, companies can submit their letter of intent and commitment to SBTi. After formally committing to SBTi, companies will have to develop CO2 emissions reduction targets based on the SBTi criteria, where a team of experts from SBTi will be available for guidance and assistance. Once targets are finalized, they are submitted for validation and approval. Upon approval, companies can announce their targets and inform their stakeholders about their commitments.
With SBTi gradually becoming integrated in organizations climate action strategies, common barriers and challenges for setting SBTi:
Scope 3 Availability
- Low quality and minimal data across the value chain
Organizational Readiness
- Organizations need to internally restructure to enable CO2 reductions initiative
- Organizations are not willing to invest in products with a lower greenhouse gas footprint
Method Availability
- Some sectors still have no clear guidance on methods of integrating SBTis into thier climate action strategies
Value Chain Cooperation
- Involving suppliers and/or other stakeholders in reducing Scope 3 emissions is challenging and at times cumbersome