SBTi: How it Works and Why Your Business Should Set One

1. What is the SBti?

The Science Based Targets initiative (SBTi) is a corporate climate action organization that enables companies to do their part in combating the climate crisis. They develop standards, tools and guidance which allow companies to set greenhouse gas (GHG) emissions reductions targets in line with what is needed to keep global heating below catastrophic levels and reach net-zero by 2050 at the latest. The Paris Agreement, an international treaty adopted in 2015, aims to limit global warming by keeping the global average temperature to below 2 degrees celsius above pre-industrial levels, with efforts to limit it to 1.5 degrees celsius. 

Businesses play a critical role in reducing greenhouse gas emissions. The SBTi was built to mobilize the private sector and teach businesses how much and how quickly they need to decarbonize to prevent the worst of climate change impacts. To achieve this, GHG emissions must halve by 2030 and drop to net-zero by 2050. 

2. How do SBTis work?

Targets are considered “science-based” if they are in line with what the latest climate science deems necessary to meet the goals of the Paris Agreement (currently that goal is to limit global warming to 1.5°C above pre-industrial levels). Companies of all sizes and worldwide can set an SBTi, which are tailored to their business and industry. Here are the steps to get started:

• Register at SBTi Services
• Commit to reaching a long-term goal. This is optional for corporate or financial institutions and unnecessary for small businesses
• Develop targets using SBTi standards and criteria. Your business will be asked to calculate a complete greenhouse gas (GHG) inventory across the businesses' scopes 1, 2 and 3 in alignment with the Greenhouse Gas Protocol, prior to developing targets
• Submit your target for validation and publishing on the SBTi website
• Communicate your target to the public and inform stakeholders within six months of validation
• Disclose any progress your company makes towards your target through annual reports, sustainability reports, or other public statements

3. Why should my business set an SBTi?

By setting an SBTis, your company is demonstrating its commitment to addressing climate change and contributing to global efforts to mitigate its impacts. Your company will also have the resources of the SBTi to meet these goals. Aside from playing your part to help the Earth, here are a few ways your business will benefit:

• Brand Reputation: as consumers become increasingly aware of the effects their choices have on the environment, a brand’s reputation for sustainability is becoming an important consideration.
• Investor Confidence: investors are also increasingly taking interest in businesses’ environmental policies as a source of credibility for long-term commitment.
• Resilience Against Regulations: governments around the world are becoming more ambitious with their regulations, SBTi can keep your company ahead of the curve.
• Increased Innovation: it takes creativity and openness to change to reach a science based target initiative, companies are seeing a drive in innovation to help their products and services reach carbon-neutrality. 
• Cost Savings: by setting an ambitious target, companies are ensuring their operations become more streamlined and efficient and improving their bottom line.‍
• Competitive Edge: with increased innovation, reduced uncertainty, strengthened investor confidence and improved profitability, your company is getting ahead of the curve to succeed in a low carbon economy.