Rapidly becoming the standard for companies aiming to measure, reduce, and report their greenhouse gas emissions, the Science Based Targets initiative (SBTi) is a global corporate climate action organisation that enables companies and financial institutions to play their part in combating the climate crisis. This initiative defines and promotes best practices in emissions reductions and net-zero targets, develops standards, tools, and guidance, and assesses and validates targets, all in alignment with the latest climate science.
At EAS, we endorse and utilise Science-Based Targets for many of our clients. The rigorous methodology of SBTi aligns with “what is needed to keep global temperatures below catastrophic levels and reach net-zero by 2050 at latest”.
We believe these standards provide the best framework for businesses looking to adopt emissions reduction activities and confidently report on these actions.
The growing adoption of Science-Based Targets among companies is driven by the benefits of improved transparency, expectations and needs of clients – both from a supply chain perspective as well as the evolving needs and expectations consumers, and increased access to export opportunities and new markets. This trend was highlighted in the SBTi Monitoring Report for 2023, which revealed significant progress in emissions reduction efforts worldwide.
Key Highlights from the SBTi Monitoring Report 2023
- Rapid Adoption: By the end of 2023, 4,205 companies worldwide had adopted Science-Based Targets, doubling the number from 2022. This trend is expected to continue as more businesses recognise the importance of emissions reductions.
- Remarkable Growth in India: India saw a 520% increase in companies adopting science-based targets between 2022 and 2023, showcasing a significant shift in corporate climate action for the country.
- Global Impact: Companies with science-based targets or commitments now represent 39% of the global economy by market capitalisation, with this figure set to grow as more companies join the initiative.
- Regional Leadership: Europe leads in overall adoption, with 53% of companies in the region adopting science-based targets. In North America, companies with Science-Based Targets hold 48% of the market by capitalisation, reflecting substantial engagement in emissions reduction.
- Potential for Growth in Oceania: In New Zealand, only 37 companies have set or committed to science-based targets, with Australia at 117. This contrasts with the UK’s 1,316 and the USA’s 1,087, indicating significant potential for growth in emissions reduction in the region.
- Sector Insights: The agriculture, food, and beverage sector, despite being a major emitter of greenhouse gases, has been slower to adopt Science-Based Targets. However, adoption has doubled, with challenges stemming from a consolidated market structure and the difficulties of measuring and reducing agricultural emissions. SBTi guidance specifically for Forestland and Agriculture (FLAG) may encourage further adoption by this sector in the coming years.
Learn More and Take Action
Read the full report and learn more about Science-Based Targets here.
If your business is ready to embrace Science-Based Targets to measure and reduce emissions, we are here to help. Contact our team today to start your journey.