What are the benefits and challenges of setting science-based targets for reducing your climate impact?

1 What are SBTs and how do they work?

SBTs are GHG emissions reduction targets that are consistent with the level of action needed to limit global warming to well below 2°C, preferably 1.5°C, above pre-industrial levels, as defined by the Intergovernmental Panel on Climate Change (IPCC). SBTs are not arbitrary or self-defined, but rather validated by an independent initiative called the Science Based Targets initiative (SBTi), which is a collaboration between CDP, the UN Global Compact, the World Resources Institute, and the WWF. To set SBTs, you need to measure your GHG emissions across your value chain (scope 1, 2, and 3), choose a target-setting method that aligns with the SBTi criteria, and submit your target for validation. You also need to report your progress annually and review your target at least every five years.

3 What are the challenges of setting SBTs?

Setting SBTs is a complex process that comes with its own set of challenges, such as securing internal buy-in and commitment from senior management and board members, engaging and collaborating with suppliers, customers, and other partners, managing data quality and availability issues when measuring and reporting GHG emissions, balancing short-term costs with long-term returns, and adapting to the changing climate science and policy landscape. All of these elements require careful consideration in order to effectively communicate the benefits of SBTs to both internal and external stakeholders.

4 How can you overcome these challenges?

Setting SBTs can be challenging, but there are strategies and resources to help you overcome them. Building a strong business case and value proposition is essential, as well as creating a cross-functional team and governance structure. Leveraging the tools and guidance provided by the SBTi and other organizations can aid in measuring, setting, validating, and reporting your SBTs. Additionally, seeking external support from experts or peers with knowledge in setting and implementing SBTs is beneficial. Joining networks and initiatives such as the Business Ambition for 1.5°C campaign or the Race to Zero coalition can also provide learning opportunities and collaboration with other leading companies and stakeholders.

5 What are the next steps for setting SBTs?

If you're interested in setting SBTs for your business, you can begin by assessing your current GHG emissions profile and performance, and identifying sources and drivers of emissions across your value chain. Explore the different target-setting methods and approaches available, and choose the one that best suits your context and ambition level. Define your SBTs, submit them to the SBTi for validation, and communicate them to stakeholders using relevant platforms and channels. Implement your SBTs, monitor results using key performance indicators and metrics, and review and update them as needed. Setting SBTs can be a difficult but rewarding process that can help you transform your business and align it with global climate goals. Not only will you reduce your climate impact, but you'll also enhance corporate sustainability performance and create value for your business and society.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?