If you're committed to becoming a sustainable brand, you're likely thinking about how to decarbonise your operations and demonstrate genuine results. Many businesses are concerned about not reaching their decarbonisation goals fast enough and being accused of greenwashing. This can lead to a ‘green-hush’ situation, where companies avoid talking about their efforts or, worse, don't take any action at all. But how can you avoid this? One solution could lie in using set standards, like the Science Based Targets initiative (SBTi).
The SBTi offers more than just a way to reduce your carbon footprint – it provides a credible, science-backed framework to align your business with global climate goals. It isn't about making vague promises or settling for easy wins. It's about setting ambitious, measurable targets that contribute meaningfully to combating climate change.
A quick intro
The Science Based Targets initiative (SBTi) is a collaborative effort between several leading organisations with the goal of helping businesses set greenhouse gas (GHG) reduction targets that align with climate science and the Paris Agreement. Think of the SBTi as a roadmap to real decarbonisation.
It’s not about arbitrary goals or easy fixes. Instead, it’s about aligning your emissions reduction efforts with what scientists say is necessary to keep global warming in check. This means your targets aren't just good for PR – they’re good for the planet.
Key Aspects of the SBTi
Objective
At its core, the SBTi aims to get the private sector to take real, measurable action against climate change by setting science-based targets (SBTs) that contribute to reducing global GHG emissions.
Founding Organisations
The SBTi is a partnership between major environmental organisations: CDP (formerly the Carbon Disclosure Project), the United Nations Global Compact, the World Resources Institute (WRI), and the World Wide Fund for Nature (WWF).
Target Setting
Science-based targets are emissions reduction goals that align with what's necessary to keep global temperature increase within the Paris Agreement limits. These targets cover all relevant scopes of emissions:
Scope 1: Direct emissions from your business activities.
Scope 2: Indirect emissions from the energy you purchase and use.
Scope 3: Other indirect emissions, such as those from your supply chain or the use of your products.
The SBTi encourages companies to reduce emissions across all scopes and recognises that carbon removals (like those seen in nature-based solutions) can play a role in balancing unavoidable emissions. However, the emphasis is clear: reductions should always come first
Methodologies and Tools
The SBTi provides tools and methodologies to help you set your targets. These include:
Sector-specific guidance
Acknowledging that different industries face unique challenges.
Target-setting tools
To help establish your targets.
Validation criteria
Ensuring your targets meet SBTi standards.
The SBTi offers different approaches for setting targets, such as:
Absolute Emissions Contraction
Reducing your total emissions in line with the global carbon budget.
Sectoral Decarbonisation Approach (SDA)
Recognising that different sectors have different emissions profiles and reduction potentials.
Validation and Approval
Once you've set your targets, you can submit them to SBTi for validation. They'll check if your targets meet their criteria, and if they do, you get the green light to announce your science-based targets publicly.
Reporting and Transparency
SBTi encourages companies to report their progress annually and update their targets as needed, ensuring that they remain aligned with evolving climate science.
The Role of Nature-Based Solutions
While the SBTi focuses on reducing emissions, it recognises the important role of carbon removals through nature-based solutions, like forest carbon sequestration. For industries like forestry or agriculture, nature-based solutions can help balance unavoidable emissions once reduction efforts are in place.
SBTi in Practice
Let’s look at how a company might implement science-based targets using nature-based solutions.
Consider a fictional New Zealand forestry company, KiwiGreen Forests Ltd:
They start by conducting a baseline assessment, measuring their current GHG emissions across all scopes (1, 2, and 3).
Using SBTi’s Absolute Emissions Contraction approach, they set a target to reduce absolute emissions by 50% by 2030, compared to their 2018 baseline.
To meet this target, they focus on reducing their operational emissions first by upgrading machinery, improving energy efficiency, and transitioning to renewable energy sources.
To offset the remaining emissions, they invest in nature-based solutions like increasing native forest cover, which helps sequester CO₂.
They submit their targets to SBTi for validation and, once approved, announce their commitment publicly.
They track and report their progress annually, ensuring transparency.
With the help of CarbonCrop’s platform, KiwiGreen Forests Ltd measures the carbon their forests are removing, supporting them to report on their carbon removals, using them in a carbon accounting scenario, as part of their broader emissions reduction strategy.
Benefits of Setting Science-Based Targets
Why should your company consider setting science-based targets?
Climate Leadership Show the world that you're serious about climate action, enhancing your reputation and brand value.
Risk Management
Stay ahead of climate-related risks, including regulatory, market-based, or physical risks.
Operational Efficiency
Reducing emissions often leads to increased energy efficiency and cost savings.
Investor Confidence
More investors are seeking companies with robust climate strategies.
Market Competitiveness
Proactive emissions reduction and nature-based solutions can give you an edge as markets shift toward low-carbon solutions.
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The Science Based Targets initiative (SBTi) is a practical framework that helps companies achieve their decarbonisation goals with confidence. SBTi emphasises transparency, accountability, and robust methodologies. It's about making sure your climate targets are not just ambitious, but credible and effective. By setting science-based targets, you're not just managing climate-related risks - you're positioning your company to succeed.
If you’re ready to set your science-based targets or have already started the process, CarbonCrop can help by measuring your forest carbon removals. Our platform helps you to understand the CO₂ sequestered by your forests, supporting in your reporting and carbon accounting processes allowing you to achieve your SBTi-aligned goals easier. Learn more at carboncrop.com
Glossary
Baseline Assessment: Initial measurement of current greenhouse gas emissions.
Carbon Budget: The maximum amount of carbon dioxide that can be emitted while still limiting global temperature rise to a specific level.
CDP (Carbon Disclosure Project): An organisation that supports companies and cities to disclose their environmental impact.
Decarbonisation: The process of reducing carbon dioxide emissions.
GHG (Greenhouse Gas): Gases that trap heat in the atmosphere, contributing to global warming.
Greenwashing: Making false or misleading claims about the environmental benefits of a product, service, or company's practices.
Paris Agreement: An international treaty on climate change aiming to limit global warming to below 2°C.
Science-Based Targets (SBTs): greenhouse gas reduction targets that align with the latest climate science.
United Nations Global Compact: A non-binding United Nations pact to encourage businesses worldwide to adopt sustainable and socially responsible policies.
World Resources Institute (WRI): A global research organisation that works to sustain natural resources.
World Wide Fund for Nature (WWF): An international non-governmental organisation working in the field of wilderness preservation and the reduction of human impact on the environment.
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