As climate change continues to dominate headlines and boardroom discussions, organizations are looking to align their business strategies with a sustainable future. Science-Based Targets (SBTs) offer a powerful way to demonstrate your company's commitment to reducing greenhouse gas emissions in line with the Paris Agreement goals. With over 1,300 companies already committed to SBTs and the IPCC's recent report emphasizing the urgency of limiting global warming to 1.5°C, now is the time to act. To help you navigate this process, we've produced a guide covering the essentials of SBTs, expectations, target-setting, and next steps.
What are Science-Based Targets?
SBTs are corporate emissions reduction targets that align with the level of decarbonization required by the Paris Agreement to limit global temperature rise to well below 2°C, preferably 1.5°C, above pre-industrial levels. The Science-Based Targets Initiative (SBTi) provides a framework and resources to help companies develop and validate their targets, ensuring credibility and consistency. According to the SBTi, adopting net-zero targets that meet their new Net-Zero Standard can drive companies towards a 1.5°C-aligned trajectory.
Target Setting Approaches
SBTs must cover an organization's Scope 1 and 2 emissions (direct emissions and those from purchased energy) and, where relevant, Scope 3 emissions (indirect emissions from the value chain). The SBTi classifies target-setting methods into three main categories:
Sector-based approach: Allocates emissions reduction targets based on a company's sector, reflecting its fair share of decarbonization efforts.
Absolute-based approach: Involves setting an absolute emissions reduction target, independent of a company's size or sector.
Economic-based approach: Links emissions reduction targets to economic output, such as revenue or value-added.
Choose the appropriate method(s) for your organization based on your industry, size, and business model.
How to Set Targets
To set your SBTs, we recommend following these steps:
Assemble a team: Create a cross-functional team, including representatives from various departments, to gather data and develop your targets.
Measure and report emissions: Calculate your company's current emissions using recognized methodologies like the Greenhouse Gas Protocol.
Commitment: Make a commitment to decarbonize and share
Choose a target-setting method: Select the most appropriate method(s) for your organization, as outlined in the SBTi framework.
Set the target: Define the emissions reduction target and timeframe, ensuring that it aligns with the Paris Agreement goals and the SBTi's Net-Zero Standard.
Submit for validation: Submit your target to the SBTi for validation, confirming that it meets the necessary criteria.
What Comes Next
Once your targets are set and validated, it's time to put them into action. We suggest taking these next steps:
Communicate your commitment: Share your targets and progress with employees, investors, and customers to foster a culture of sustainability and accountability.
Develop a decarbonization strategy: Create a comprehensive roadmap outlining the actions needed to achieve your targets. Focus on energy efficiency, renewable energy sourcing, and circular economy principles.
Engage your value chain: Work with suppliers to ensure their emissions reduction goals align with yours. Encourage transparency and collaboration.
Monitor and review: Regularly track your progress, adjusting your strategy as needed to stay on course. Stay informed about emerging technologies and best practices to optimize your decarbonization efforts.
How Zeroe Can Help
Setting Science-Based Targets is a critical step in demonstrating an organization's commitment to sustainability. As your partner, Zeroe offers a comprehensive platform and a team of dedicated climate experts to help you measure, track, and reduce your carbon emissions. Together, we can navigate the complexities of setting and achieving Science-Based Targets, ensuring that your organization remains resilient and competitive in a low-carbon economy. Reach out to our team at Zeroe today and let us help you embark on your path towards a sustainable future.
