The Science Based Targets Initiative (SBTi) represents a collective and rigorous effort for companies to set greenhouse gas (GHG) emissions reduction targets based on climate science.
For Why is it important for a company to set reduction targets aligned with science?
A) Climate change mitigation
By setting targets aligned with science, business can make a significant contribution to limiting global warming to safe levels, i.e. well below 2°C, with efforts to limit it to 1.5°C above pre-industrial levels.
B) Corporate responsibility and leadership
Companies that commit to science-based goals demonstrate leadership and accountability. This commitment not only enhances their reputation, but also strengthens the confidence of investors, customers and other stakeholders.
C) Compliance and risk reduction
Government policies and environmental regulations are evolving rapidly. Setting reduction targets aligned with science helps companies anticipate and comply with emerging regulations, thereby reducing regulatory and financial risks.
How does the ESRS E1 climate change standard integrate SBTi methodologies?
A) Transparency and Accountability
ESRS E1 requires companies to be transparent about their emission reduction targets. This includes disclosure of specific targets, timeframes for achieving them and the methodologies used to set these targets.
B) Consistency with Science
The ESRS E1 standard emphasises the importance of reduction targets that are consistent with the latest science. This means that companies should set targets that are aligned with the climate thresholds set by the Paris Agreement and other relevant scientific frameworks.
C) Targets and metrics related to climate change mitigation
In the metrics and targets section of Appendix B "Implementation requirements", ESRS E1 states that the reduction factor used to determine the reduction target should be based on an emission reduction pathway consistent with limiting global warming to 1.5°C, such as those set by the SBTi in its sectoral (SDA) and cross-sectoral (ACA) approaches.
What types of reduction targets does the SBTi set?
The SBTi sets out two main types of emission reduction targets: near-term ("near-term") targets and net-zero ("net-zero") targets. Each has
specific characteristics and approaches.
The following table summarises the main differences between the SBTi Near Term and Net-Zero criteria.
Conclusions
While short-term targets are essential to secure immediate reductions and build momentum, Net-Zero targets represent the ultimate commitment to eliminate the net impact of GHG emissions. Both types of targets are complementary and necessary for a comprehensive climate change mitigation strategy.
SBTi provides an essential framework for businesses to align with climate science and contribute significantly to the fight against climate change. The implementation of These goals, whether in the short term or towards carbon neutrality, are not only a corporate responsibility, but also an opportunity to lead in sustainability and ensure a resilient and prosperous future.
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