SBTi: what are Science Based Targets and how does the initiative work
What is SBTi and why join the initiative
SBTi It is the initiative that defines science-based emission reduction objectives, to strengthen the competitive position of companies that want to switch to a low-carbon economy.
The initiative was founded in 2015 from the collaboration between CDP, UN Global Compact, World Resources Institute (WRI), World Wide Fund for Nature (WWF) and We Mean Business Coalition, and aims to lead companies in a structured path towards the significant and scientifically based reduction of greenhouse gas emissions.
The companies that join SBTi are committed to setting a goal of reduction of emissions in line with the Paris agreement, committing to limit global warming to 1.5 ºC, or well below 2 ºC.
Why join Science Based Targets (SBTi) initiatives
SBTi was born from an ever increasing awareness of essential role that the private sector plays in the fight against climate change.
While international objectives and standards provide a general framework in which to move, SBTi offers a concrete instrument to companies that want to act in an effective and measurable way.
Today that climate change is one of the greatest global challenges, the commitment of companies to reducing greenhouse gas emissions becomes, in effect, a business strategy, in addition to ethical responsibility.
THEformal membership in SBTi offers the opportunity to position yourself as avant-garde company within its reference sector, demonstrating a forward-looking vision towards a sustainable economy.
This commitment transmits a clear message of responsibility to customers, investors and the company as a whole, strengthening the business reputation And the market confidence.
The transition to sustainable practices also makes it possible to anticipate market trends and any future environmental regulations, reducing the risks of incurring sanctions or penalties, or to find yourself lagging behind the most virtuous competitors.
How are Science Based Targets defined?
The process of defining science-based reduction targets requires detailed planning, and a thorough understanding of business operations and their environmental impact.
SBTi provides tools, resources and guidelines to support companies on a rigorous path that includes several steps:
- selection of the base year;
- calculation of emissions;
- definition of the boundaries of reduction objectives;
- choice of target year.
Click the link below and download the free white paper to learn what are the 3 key elements for calculating reduction objectives.
Download the free white paper
How to structure an SBTi membership path for large companies
The standard process defined by SBTi, which large companies and financial institutions must follow to obtain the validation of reduction targets, is divided into 5 phases.
- Commit: the company must submit a declaration of commitment to formalize its desire to structure science-based reduction objectives, and to request to formally join the initiative.
- Develop: SBTi offers 2 different types of approaches to be able to develop reduction targets.
- Absolute contraction: This approach requires a company to reduce its total greenhouse gas emissions in absolute terms, within a specified period.
- Intensity metrics: Instead, this approach takes into account a company's specific circumstances and challenges, focusing on reducing emissions per unit of output. All indications are made available through the publication of “sector-specific” guides.
- Submit: The company has 24 months from the time of signing the declaration of commitment to define and present the reduction targets. Once submitted, the validation team will evaluate the objectives, to determine their consistency with the SBTi guidelines.
- Communicate: if approved, the company must publicly communicate the short and long-term reduction objectives that have been structured and validated. At the same time, SBTi makes the same targets visible on its web page dedicated to companies that have formally joined the initiative.
- Disclose: after joining, the company is obliged to disclose on an annual basis the inventory of its emissions and the progress achieved with respect to the reported reduction objectives.
Click the link below and download the free white paper to learn about the process of joining SBTi for SMEs
Download the free white paper
What you'll find in the free white paper
- What is behind the Net Zero objective
- What is SBTi and why to join
- The 3 key elements for calculating reduction objectives
- How does the SBTi membership process work for large companies
- How does the SBTi membership process work for SMEs
- How to intervene in the value chain: Beyond Value Chain Mitigation (BVCM)
- What are the objectives and principles of BVCM
- How to integrate BVCM into business strategy
