{"id":27,"date":"2022-08-11T12:09:00","date_gmt":"2022-08-11T11:09:00","guid":{"rendered":"https:\/\/www.goodenergy.co.uk\/businesses\/?p=27"},"modified":"2023-10-23T16:31:18","modified_gmt":"2023-10-23T15:31:18","slug":"science-based-targets-initiative","status":"publish","type":"post","link":"https:\/\/www.goodenergy.co.uk\/business\/insights\/science-based-targets-initiative\/","title":{"rendered":"What is the Science Based Targets initiative?"},"content":{"rendered":"\n

If you\u2019re a large organisation, it\u2019s very likely you\u2019re having to report your greenhouse gas emissions under one mandatory scheme or another. Because of this, many organisations are choosing to go one step further and commit to carbon reductions targets such as net-zero, even if they aren\u2019t required to report their emissions. 

The Science Based Targets initiative (SBTi) sets the gold standard for emissions reduction. To date, over 1,500 companies have had their targets approved. Here, we lay out what it is, who can sign up, why you\u2019d want to, and the steps you\u2019d need to take.<\/p>\n\n\n\n

What are science-based targets?<\/h3>\n\n\n\n

The 2015 Paris Agreement saw nearly 200 of the world\u2019s governments commit to preventing dangerous climate change by limiting global warming to well below 2\u00b0C above pre-industrial levels and pursuing efforts to limit it to 1.5\u00b0C by 2030.<\/p>\n\n\n\n

SBTi enables organisations to set ambitious emission reduction targets in line with what the latest climate science says is necessary to meet the Paris Agreement. Organisations commit to halving their emissions by 2030 and achieving net zero by 2050, with SBTi independently assessing and verifying each company\u2019s target figures.<\/p>\n\n\n\n

Who can sign up?<\/h3>\n\n\n\n

With a few exceptions, all companies and financial institutions can sign up to SBTi. The initiative provides specific guidance<\/a> on routes and methods to join, depending on the size of the company and the sector in which they operate. <\/p>\n\n\n\n

Currently, fossil fuel companies and automakers are unable to validate their targets, though the latter can commit to setting a target and SBTi hopes to include both sectors soon. Also excluded for the moment are cities, local governments, public sector institutions, educational institutions and non-profit organisations. <\/p>\n\n\n\n

Why sign up?<\/h3>\n\n\n\n

With greenwashing<\/a> rampant and many questioning the legitimacy of net zero claims, SBTi provides organisations with credible, recognisable and independently audited emissions targets. This strengthens a company\u2019s brand, improves investor confidence, drives innovation and boosts profitability<\/a>.<\/p>\n\n\n\n

The systematic, science-based approach helps organisations to ascertain precisely how far they have to go to make a real difference. The ambitious nature of the targets ensure transformational action, demonstrating leadership on climate action.<\/p>\n\n\n\n

What do I need to do?<\/h3>\n\n\n\n

The SBTi sign up process is slightly different depending on the size of an organisation. SMEs – defined as independent, non-subsidiary companies with fewer than 250 employees – can skip to step 3.<\/em><\/p>\n\n\n\n

Step 1: Commit<\/strong><\/p>\n\n\n\n

Register online and submit a letter establishing your intent to set a science-based target (SBT) that is in line with SBTi\u2019s criteria. You then have 2 years to set this target and get it, or an established target, verified by SBTi.<\/p>\n\n\n\n

On receipt, an organisation will receive a confirmation email and will be recognised as \u201ccommitted\u201d on SBTi\u2019s website, as well as their partner websites We Mean Business and UN Global Compact.<\/p>\n\n\n\n

Step 2: Develop<\/strong><\/p>\n\n\n\n

As of 15 July 2022, organisations must set a near-term SBT between 5 to 10 years which aligns with the level of decarbonisation required to keep global warming to 1.5\u00b0C (previously targets could align with 2\u00b0C warming).<\/p>\n\n\n\n

Prior to setting SBTs, organisations will need to ensure that they are inventorying their scope 1, 2 and 3 emissions per the Greenhouse Gas (GHG) Protocol Corporate Standard<\/a>. These then need to be verified by an external party. <\/p>\n\n\n\n

SBTs must cover company-wide scope 1 and scope 2 emissions. If scope 3 emissions compose over 40% of total emissions, organisations must set a scope 3 target as well. Crucially, offset and avoided emissions do not count towards emissions reductions. Other things to consider are:<\/p>\n\n\n\n