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What are Science-Based Targets?

Science-Based Targets (SBTs) are specific, measurable goals set by companies to reduce their greenhouse gas emissions, aligning their efforts with the levels of decarbonization that, according to climate science, are necessary to keep global temperature increase below 1.5°C to 2°C compared to pre-industrial temperatures. 

What is its purpose and importance?

These targets are vital tools in the transition towards a low-carbon economy and are essential for companies aiming to mitigate climate change risk while demonstrating leadership in sustainability. SBTs ensure that corporate emissions reduction targets line up with the latest climate science and the goals of the Paris Agreement. This alignment guarantees that efforts by the corporate sector contribute meaningfully to preventing the dangerous effects of climate change.

How are these developed?

SBTs are developed and validated by the Science Based Targets initiative (SBTi). The SBTi provides companies with a clearly-defined pathway to reduce GHG emissions, helping them determine how much and how quickly they need to reduce their greenhouse gas emissions.

Companies interested in setting SBTs first commit to it by signing a commitment letter and submitting it to the SBTi, which then publicly acknowledges the company’s commitment. The company must then develop specific targets and reduction pathways aligned with climate scenarios.

After developing their targets, companies submit them to the SBTi for validation to ensure they are in line with what the latest climate science deems necessary.

Once validated, the company moves forward with implementing strategies to achieve these targets. This often involves significant changes to operations, supply chain management, product design, and raw material sourcing.

To ensure transparency and accountability, companies must regularly report on their progress and have their results reviewed by the SBTi.

What are the challenges in making a Science-Based Target?

Setting and achieving SBTs can be challenging due to the need for significant investment in new technologies, potential disruptions in traditional business operations, and the necessity of extensive collaboration across the entire value chain. Additionally, companies with extensive Scope 3 emissions may find it particularly challenging to engage with suppliers and partners to reduce downstream and upstream emissions.

Need help with other sustainability questions? 

Keslio is an international sustainability advisory that helps companies and investors navigate their sustainability journey. We support our clients through various services, such as strategy development and implementation, reporting and communications, and greenhouse gas emissions calculations.

We’re passionate about supporting business leaders and their companies with sustainability and ESG and we’d love to help you. To talk to us and find out what Keslio can do for you, please use the section below to contact us, or email us at hello@keslio.com.

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KeslioX is an independent resource platform to equip companies and investors with the crucial knowledge, resources, and insights needed to navigate the complex landscape of sustainability and ESG.

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