How to set a science-based target?
A company that wants to set a science-based target can work with the Science-Based Target Initiative to set objectives. Once these goals are clearly defined by the company, they are validated by the SBTi and become targets. Companies that go through this process benefit from detailed feedback and support from the SBTi’s technical experts.
Setting a science-based target with SBTi is a five-step process:
- Commit: submit a letter to SBTi stating the intent to set a science-based target
- Develop: work on an emissions reduction target in line with the SBTi’s criteria
- Submit: present the 1.5°C-aligned target to SBTi for official validation
- Communicate: announce the target and inform stakeholders
- Disclose: report company-wide emissions in annual reports, on website and also through CDP, and track target progress annually
What is the aim of science-based target initiatives?
What are the benefits of science-based targets?
When companies set science-based targets, the results are clearly good for the planet in terms of cleaner air and environment, and reducing the effects of climate change like extreme weather. As thousands of companies have already discovered, science-based targets are also good for business. Setting these targets forces a company to think long term, balancing profitability with a positive effect on the environment and society.
Here’s a look at some of the benefits:
- Brand reputation: many consumers are aware of the effect their choices have on the environment, and they have an increasing number of tools to help them pick products that are “green.”
- Investor appeal: investors are increasingly taking environmental, social and governance (ESG) performance into account when they decide to allocate funds.
- Regulatory compliance: national governments that have signed the Paris Agreement will need to pass legislation to curb emissions.
- Innovation driver: rethinking a business model in order to meet emissions reduction targets forces a company to innovate products and processes, opening up new opportunities.
- Cost savings: cutting GHG emissions often involves reducing waste, streamlining operations, and using less energy. These efforts result in a better bottom line.