Science-Based Target setting (SBT) refers to the process whereby companies and organizations set greenhouse gas emission reduction targets in line with the latest climate science requirements needed to meet the goals of the Paris Agreement — limiting global warming to well below 2°C above pre-industrial levels and pursuing efforts to limit the warming to 1.5°C.

The role of the Science Based Targets initiative (SBTi)

The Science Based Targets initiative is a collaboration between CDP, the United Nations Global Compact, World Resources Institute (WRI), and the World Wide Fund for Nature (WWF). The SBTi champions science-based target setting as a powerful way of boosting companies’ competitive advantage in the transition to a low-carbon economy. It offers companies a clearly defined pathway to future-proof growth by specifying how much and how quickly they need to reduce their greenhouse gas emissions.

Benefits of Science-Based Target Setting

Adopting science-based targets offers numerous benefits, including:

Enhanced Brand Reputation

Demonstrating a commitment to sustainable practices can significantly improve a company’s image and brand value.

Risk Management

Science-based targets help companies anticipate regulatory changes and reduce their exposure to carbon-related risks.

Innovation and Competitive Advantage

The process encourages innovation in product development, operations, and supply chain management, leading to improved efficiency and cost savings.

Investor Confidence

By aligning with globally recognized goals, companies attract investments from increasingly climate-conscious investors.

Explore more about Science-Based Target setting here, https://www.esgflo.com/science-based-target-setting.