A Science-Based Target is a target to reduce greenhouse gas emissions based on science, that is, in accordance with the level of decarbonisation needed to keep the increase in global temperature below 1.5°C compared to pre-industrial temperatures.
Defining science-based targets is not easy because climate scenarios relevant to the company’s business must be examined. However, these are critical in designing reliable and fully customised climate roadmaps.
For some sectors, SBTi has also defined ad-hoc methodologies, such as Forest Land and Agriculture (FLAG), which allows the inclusion of the agricultural supply chain in its submission. Aviation, finance and transport are included among other methodologies available.
Investors, customers, employees, and all stakeholders, both internal and external, expect companies to take positive action with respect to climate. Today, defining a Science-Based Target has become best practice and over 5,000 companies around the world have already done so.
The benefits for companies
- A concrete and immediate signal in the transition to net-zero
- Better positioning and significant advantage compared to competitors
- Innovation, which translates into improving efficiency and reducing costs
- Improved reputation among customers, investors and new talent
- Improved performance of Environmental, Social and Governance (ESG) ratings, such as CDP (ex-Carbon Disclosure Project)
- Risk reduction because “business as usual may mean no business at all”
- A more robust strategy and long-term planning