Science Based Targets Initiative (SBTi)

Definition

The Science Based Targets Initiative (SBTi) is a global body that helps companies set greenhouse gas emissions reduction targets in line with climate science. It aims to ensure that corporate targets contribute to the global goal of limiting temperature rise to 1.5 degrees Celsius above pre-industrial levels. This initiative emphasizes the importance of aligning business strategies with climate science to mitigate risks associated with climate change, enhancing sustainability and resilience within the corporate sector.

5 Must Know Facts For Your Next Test

1. The SBTi was launched in 2015 as a collaboration between CDP, the United Nations Global Compact, World Resources Institute (WRI), and WWF.
2. Companies that set science-based targets are better equipped to manage regulatory risks and meet stakeholder expectations regarding climate action.
3. As of 2023, over 2,000 companies globally have committed to setting science-based targets through the SBTi.
4. The initiative provides a framework for organizations to set targets that are not only ambitious but also grounded in the latest climate science and methodologies.
5. Setting science-based targets can improve a company's reputation and competitive advantage by demonstrating leadership in sustainability.

Review Questions

• How does the Science Based Targets Initiative influence corporate strategies for addressing climate change?
  • The Science Based Targets Initiative encourages companies to align their emission reduction goals with the latest climate science, which influences their overall business strategies. By adopting science-based targets, companies can identify and prioritize initiatives that significantly reduce greenhouse gas emissions while promoting long-term sustainability. This strategic alignment helps businesses manage risks related to climate change and meet stakeholder expectations for responsible environmental practices.
• Discuss the role of SBTi in promoting accountability among companies regarding their climate commitments.
  • The SBTi promotes accountability among companies by requiring them to set specific greenhouse gas emission reduction targets that are validated based on scientific criteria. By adhering to this framework, organizations are not only committing to ambitious goals but are also held accountable for their progress in achieving those targets. This transparency fosters trust with stakeholders and encourages continuous improvement in sustainability practices across various industries.
• Evaluate the potential impact of the Science Based Targets Initiative on global efforts to combat climate change and its implications for future business operations.
  • The Science Based Targets Initiative has the potential to significantly impact global efforts to combat climate change by driving widespread adoption of science-aligned emission reduction goals across industries. As more companies commit to these targets, it can lead to substantial reductions in overall greenhouse gas emissions, contributing to global climate goals. Furthermore, as regulatory pressures increase and consumer demand for sustainable practices grows, businesses that adopt SBTi-aligned strategies will likely find themselves better positioned for resilience and success in a low-carbon economy.

Related terms

Net Zero: A state in which an organization balances the amount of greenhouse gases emitted with an equivalent amount removed from the atmosphere, effectively achieving a net-zero emissions status.

Carbon Footprint: The total amount of greenhouse gases emitted directly or indirectly by an individual, organization, event, or product, typically expressed in equivalent tons of CO2.

Decarbonization: The process of reducing carbon dioxide emissions associated with energy consumption and industrial processes, aimed at mitigating climate change impacts.