SBTi Science Based Targets Initiative

The fact that the world is warming more and more every day is causing serious damage to nature, species, and the economy. Companies are responsible for a major portion of the carbon emissions that cause warming. For the world not to warm any further, it is also extremely critical for companies to set zero carbon emission targets and take rapid actions to reach these targets. At this point, the initiative called SBTi, which stands for Science Based Targets Initiative, is an initiative that draws up a roadmap for companies struggling to set zero carbon emission targets and evaluates the moves made by companies.  

What is the Science Based Targets Initiative (SBTi)?

The Science Based Targets Initiative (SBTi) is a collaboration between the United Nations Global Compact, the World Resources Institute (WRI), the Carbon Disclosure Project (CDP), and the World Wide Fund for Nature (WWF). SBTi was established in 2015 to help companies and financial institutions define their greenhouse gas (GHG) emissions reduction strategies in light of the Paris Agreement goals. The global team of this initiative consists of individuals from stakeholder organizations. Numerous companies have also joined the initiative to set science-based targets, which is funded by various foundations, primarily Amazon, Bezos Earth Fund, IKEA Foundation, and Rockefeller Brothers Fund. 

SBTi aims to halve emissions before 2030 and to reach net-zero emissions by 2050. It accelerates the process of achieving carbon emission targets by supporting companies. While setting science-based targets on one hand, it encourages companies by defining best practices on the other. It aims to increase the competitiveness of companies in the transition to a net-zero economy. It also provides the necessary resources and guidance to reduce the obstacles in front of companies during the process of reducing carbon emissions. It independently assesses and approves companies' targets. As of the first half of 2024, over 3,000 companies have committed to zero carbon emissions, and over 8,000 companies have taken action to reach zero carbon emission targets. 

How Does the Science Based Targets Initiative Work? 

Based on the principles of the Paris Agreement, SBTi aims to ensure that the planet's temperature does not rise above 1.5 degrees compared to the pre-industrial period. To achieve this goal, it utilizes science. The actions taken by the Science Based Targets Initiative for companies and financial institutions can be listed as follows:  

Creating a Framework for Action Plans 

It is often difficult for the business world or industry giants to develop actionable plans that can implement climate targets within a specific timeframe. At this point, SBTi steps in and clearly defines the path companies must follow to transition to a net-zero economy. It makes actionable recommendations on reducing carbon emissions.  

Guidance and Verification 

SBTi provides guidance to companies, regardless of the sector in which they operate, on how they should work to reach zero carbon emission targets. It also provides official verification of implemented zero carbon emission targets for both public and private companies. 

Transparency 

SBTi encourages companies that have a share in stimulating the global economy to take responsibility for their negative impacts on the environment and to be transparent. In addition to setting targets for reducing carbon emissions, it also provides support to companies in areas such as risk management, reaching investors, being sustainable, and gaining a competitive advantage.  

Science-Based Target Setting Process 

The target points that companies in different sectors should aim for have been defined. All companies can review these target points through the data package published by SBTi.  

Organizations adopting the net-zero standard are required to set near-term and long-term science-based targets. Near-term targets clearly state the steps companies can take to reduce their carbon emissions over the next 5-10 years. Reaching these targets is a prerequisite for companies wishing to set zero-carbon emission targets in the future. Long-term targets show the degree of emission reduction companies need to achieve their zero-carbon emission goals. The energy sector is obliged to reach these targets by 2040, and other sectors by 2050 at the latest. 

Steps for Setting Science-Based Targets 

The science-based target setting process for companies consists of 5 steps. These steps are as follows:  

• Commitment: Companies join the Science Based Targets Initiative and first submit a commitment letter showing their commitment to science-based targets to reduce carbon emissions.  

• Development: They start developing a plan in line with SBTi criteria to reduce carbon emissions. From this point on, companies have 24 months to submit their targets. Companies that do not submit their targets within 24 months are defined as "Commitment removed" on the dashboard. 

• Submission: Companies apply for official validation of their targets. The team reviews the submission. Then, they provide positive or negative feedback. 

• Announcement: Targets approved by the team can be shared with both consumers and stakeholders. If these targets are not shared within 6 months, the application is taken back for re-evaluation.  

• Disclosure: Companies track their progress towards targets and share it with the public on an annual basis. 

Direct emissions arising from sources owned and controlled by businesses are considered Scope 1; indirect emissions from energy procured by an organization or firm for its use are considered Scope 2. Scope 3 refers to other indirect emissions that the company does not produce itself but occur as a result of its activities. These emissions are all other indirect emissions that do not fall under the Scope 2 category. Knowing these scopes is important for compliance with the requirements for a target to be considered a science-based target. 

For a target to be a science-based target, as of July 2022, it must meet the following requirements:  

• Compliance of Scope 1 and Scope 2 emissions with the goal of limiting global warming to 1.5 degrees, 

• Compliance with the well-below 2 degrees goal for Scope 3, 

• Inclusion of Scope 1 and Scope 2 emissions, 

• Inclusion of Scope 3 emissions if their ratio to total emissions is 40% or more. 

These scopes can be explained with this simple example: While companies accelerating their transition to renewable energy sources to reach the targets they have set under SBTi reduce Scope 2 emissions, companies that increase efficiency in procurement and distribution processes can reduce Scope 3 emissions. 

Why is the Science Based Targets Initiative Important? 

Climate change developing as a result of rising carbon emissions causes very serious harm not only to humans, animals, and nature, but also to the economy. As demonstrated by the Intergovernmental Panel on Climate Change, the world tends to be much warmer today. Therefore, greenhouse gas emissions must be reduced very rapidly, and a global effort is required for this.  

Today, the responsibility for a significant portion of greenhouse gas emissions belongs to companies. Therefore, the steps companies will take are of much more critical importance. When companies develop science-based targets for reducing carbon emissions, they can gain several advantages. 

Some of these advantages can be listed as follows: 

• For companies to reach their SBTi goals, they need to invest in fields such as renewable energy sources, waste management, and energy efficiency. This helps companies develop new technologies to continue their activities in a much more efficient and sustainable manner.  

• Thanks to SBTi, companies taking innovative actions can position themselves differently from their competitors in the sector, thereby increasing their market share. By providing more sustainable products and services, they can also gain reputation among environmentally conscious consumers. 

• Companies that have succeeded in reducing their carbon emissions with innovative solutions become much more successful in developing new business models or positioning themselves in new markets. Providing consultancy on reducing carbon emissions is one of these business models. 

• Companies taking steps to reach zero carbon emission targets may be taken more seriously by financial institutions. 

• The risk of being exposed to future regulations regarding carbon emissions is reduced. 

When companies reach their zero carbon emission targets, they do not only achieve economic growth. Reaching these targets also has positive effects on concepts such as ecosystems, biodiversity, poverty, justice, and social welfare.  

Although the Science Based Targets Initiative is a project launched in 2015, it experienced accelerated growth and encouraged many companies to participate in carbon emission reduction processes. According to information shared by the initiative, over a hundred firms and organizations apply to join this initiative every month. This is actually enough to show how successful the Science Based Targets Initiative is in reaching zero carbon emission targets.  

How Successful Has the Science Based Targets Initiative Been? 

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