You have likely heard of company’s making net-zero commitments lately, and as part of that commitment is setting greenhouse gas reduction targets that align with climate science, which is basically what science-based targets are; and the climate science says that in order to avoid catastrophic effects of climate change, we must halve global greenhouse gas emissions by 2030 and achieve net-zero emissions by 2050. I work with many of my clients to measure their carbon footprint, set science-based targets, meet those targets and report annually, but you may be wondering, “how many company’s are taking climate change this seriously?”
As it turns out, a lot. In fact, according to the Science-Based Target initiative, “at the end of 2021, 2,253 companies across 70 countries and 15 industries, representing more than one third ($38 trillion USD) of global market capitalization, had approved emissions reductions targets or commitments with the SBTi. Almost 80% of targets approved in 2021 were aligned with 1.5°C.” Basically, what this means is that if your company wants to stay relevant, it probably makes sense to start getting a handle on science-based targets. So, what exactly are science-based targets?
Science-based targets (SBTs) are greenhouse gas (GHG) reduction goals set by businesses to align their emissions reduction efforts with the latest climate science. The concept of science-based targets emerged from the recognition that ambitious and scientifically robust actions are needed to mitigate climate change effectively. But you can’t just arbitrarily set GHG reduction goals. It’s a process and here are some tips for setting SBTs….
SBTs are established by taking the following steps:
Carbon Footprint Baseline: Your company conducts a greenhouse gas (GHG) inventory, measures its Scope 1, 2 & 3 emissions (carbon footprint) and establishes a baseline year from which future GHG reductions will be measured against.
Target Setting: Your company sets long-term targets to reduce its GHG emissions in line with the global goal of limiting global warming to well below 2 degrees Celsius (preferably below 1.5 degrees Celsius) compared to pre-industrial levels, as outlined in the Paris Agreement. The targets are typically set for a specified future year, such as 2030 or 2050.
Science-Based Validation: The proposed targets are submitted to an independent initiative, such as the Science-Based Targets initiative (SBTi), for assessment and validation. The SBTi evaluates whether the targets are consistent with the latest climate science and meet specific criteria.
GHG Reduction Strategies: Once the targets are validated, your company develops strategies and action plans to achieve the required emissions reductions. Check out our recent blog for 10 Ways to Reduce the Carbon Footprint of Your Business to get an idea of what some reduction strategies look like.
Monitoring and Reporting: Progress toward the targets is monitored and reported annually via a Carbon Footprint Report a more comprehensive Sustainability Report to track performance and ensure transparency. This helps your stakeholders, including investors, customers, and the public, assess the company’s commitment and progress in addressing climate change and can lead to increases in customer loyalty.
Emerger Strategies offers a range for Sustainability Consulting Services, including measuring your company’s carbon footprint, setting science-based targets, developing and executing strategies to reduce your carbon footprint, as well as annul sustainability reporting. Contact us today to get started on your sustainability journey!