More and more companies are putting an ESG strategy in place. And while this is a step in the right direction, many of these strategies are not as effective as they could be. This is because they are not properly aligned with the science of sustainability.
The Science Based Targets initiative (SBTi) is a partnership between the United Nations Global Compact, World Resources Institute (WRI), World Wildlife Fund (WWF), and CDP. Its goal is to help companies set targets that are in line with the Paris Agreement’s goal of keeping global temperature increase to 1.5 degrees Celsius.
The SBTi has a proven track record of helping companies improve their ESG strategies and achieve their sustainability goals. This article will explain how the SBTi can help your organization optimize the E in its ESG strategy.
What is a Science Based Target?
Science Based Targets are emissions reduction goals set by businesses that are verified by the SBTi to ensure they align with what the latest climate science deems necessary to meet the goals of the Paris Agreement.
How to Set Science Based Targets?
Organizations can follow this five-step process from the SBTi to set targets:
- Commit: submit a letter to the SBTi to establish your intent to set science-based targets
- Develop: set emissions reduction targets in line with the SBTi’s criteria
- Submit: present your emissions reduction target to the SBTi for official validation
- Communicate: publish your emissions target and inform all your stakeholders
- Disclose: report organization-wide emissions and track target progress annually
When an organization sets science-based targets and commits to achieving them, it takes its first steps on the road to a net-zero future.
What are the benefits of setting Science Based Targets?
Science-based targets help organizations understand how much and how fast they need to reduce their GHG emissions to avoid the worst impacts of climate change. Setting science-based targets also helps organizations:
- Future-proof growth
- Prepare for future regulations
- Boost investor confidence
- Drive innovation and competitiveness
- Demonstrate concrete sustainability commitments
Setting science-based targets allows businesses to focus on what really matters. They can measure their performance against these targets, allowing them to see where they stand and whether or not they are on track to meet their goals.
Optimize the E of Your ESG Strategy with SBTi
Science-based targets provide companies with easy-to-follow guidance for reducing emissions in line with the Paris Agreement. The SBTi has multiple resources designed to support organizations on their sustainability journey, including:
The SBTi also offers separate sector-specific methodologies, frameworks, and requirements. These tailored guidance documents help companies in different sectors through the target-setting process.
By utilizing these resources, organizations can optimize the environmental (E) component of their ESG strategy to align with the SBTi’s criteria and begin working toward a net-zero future. This allows organizations to direct the proper resources needed to set and achieve their science-based targets.
Ready to optimize your entire ESG strategy? FigBytes can help! Our ESG Insight Platform has multiple pre-programmed frameworks to help you simplify your ESG Reporting.
