Science Based Targets initiative (SBTi)

Description of Characteristics:

Climate Action Focused: The SBTi is a global initiative that drives ambitious corporate climate action by enabling companies to set science-based emissions reduction targets in line with the Paris Agreement’s goal of limiting global warming to 1.5°C.
Science-Based: The SBTi provides companies with a clear and credible pathway to reduce their greenhouse gas emissions based on the latest climate science.
Partnership-Driven: The SBTi is a collaboration between CDP, the United Nations Global Compact, World Resources Institute (WRI), and the World Wide Fund for Nature (WWF). 1. sciencebasedtargets.org sciencebasedtargets.org
Rigorous Target Validation: The SBTi has a rigorous target validation process to ensure that companies’ emissions reduction targets are aligned with the latest climate science and are ambitious enough to contribute to the global effort to limit warming to 1.5°C.
Sector-Specific Guidance: The SBTi provides sector-specific guidance and tools to help companies set science-based targets that are relevant to their industry and context.
Collaborative: The SBTi is a partnership between CDP, the United Nations Global Compact, World Resources Institute (WRI), and the World Wide Fund for Nature (WWF), fostering collaboration and knowledge sharing among various stakeholders.
Growing Adoption: Thousands of companies worldwide have committed to setting science-based targets through the SBTi, demonstrating the growing momentum for corporate climate action.

Targeted Audience:

Companies: The primary audience for the SBTi is companies seeking to demonstrate their commitment to climate action and set ambitious emissions reduction targets.
Investors: The SBTi is also relevant to investors who want to assess the climate risks and opportunities associated with their portfolios and engage with companies on climate action.
Other Stakeholders: Other stakeholders, such as NGOs, governments, and the general public, can also benefit from the transparency and accountability that the SBTi promotes.

Specific Criteria:

Target Setting:
- Scope 1 and 2 Emissions: Companies are required to set targets to reduce their Scope 1 (direct) and Scope 2 (indirect from purchased energy) emissions.
- Scope 3 Emissions: Companies are encouraged to set targets to reduce their Scope 3 (indirect from the value chain) emissions, if these are material to their business.
- Timeframes: Targets must cover a 5-15 year timeframe and be consistent with limiting warming to 1.5°C.
Target Validation:
- Submission of Targets: Companies submit their proposed targets to the SBTi for validation.
- Technical Assessment: The SBTi assesses the targets against its criteria and the latest climate science.
- Approval: If the targets are approved, the company is publicly recognized as having set science-based targets.

Reporting Principles:

Transparency: Companies must publicly disclose their science-based targets and progress towards achieving them.
Ambition: Targets should be ambitious and represent a significant contribution to global efforts to limit warming.
Measurability: Targets should be clear, measurable, and time-bound.
Accountability: Companies are expected to regularly report on their progress towards their targets and take corrective action if they are not on track.

Reporting Process:

Commit to the SBTi: Companies publicly commit to setting science-based targets.
Develop Targets: Use the SBTi’s methodologies and guidance to develop science-based emissions reduction targets.
Submit for Validation: Submit the targets to the SBTi for validation.
Announce Targets: Once validated, publicly announce the science-based targets.
Report Progress: Annually report on progress towards achieving the targets.

Connections to Other Frameworks:

Alignment with the SDGs: Setting and achieving science-based targets directly contributes to SDG 13 (Climate Action).
Complementary to other ESG frameworks: The SBTi can be integrated with other ESG frameworks, such as GRI and CDP, to provide a comprehensive approach to sustainability reporting.
Alignment with the Paris Agreement: The SBTi is specifically designed to help companies align their climate action with the goals of the Paris Agreement.

Challenges:

Setting Ambitious Targets: Setting and achieving science-based targets can be challenging, requiring significant changes to business operations and investments in low-carbon technologies.
Data Collection and Measurement: Gathering accurate data on greenhouse gas emissions, especially Scope 3 emissions, can be complex and resource-intensive.
Tracking Progress: Monitoring and reporting on progress towards targets requires ongoing effort and commitment.

Compliance Guidance:

SBTi Criteria and Guidance: Provides detailed information on the SBTi’s target-setting criteria and validation process.
Sector-Specific Guidance: The SBTi offers additional guidance for specific sectors, such as the power, transport, and built environment sectors.
Target Validation Protocol: Outlines the process for submitting and validating science-based targets.

Usability Evaluation:

Level of Global Adoption: Increasingly adopted by companies across various sectors, driven by investor pressure and regulatory requirements.
Ease of Use: The SBTi provides clear criteria and guidance, but the process of setting and validating targets can be complex.
Focus Areas: Focuses specifically on climate action and emissions reduction.
Data Availability: Data availability can vary depending on the company’s industry and its existing emissions accounting practices.

SyncFrame Compatibility:

Strong Alignment: SyncFrame’s focus on impact measurement, data-driven insights, and climate action aligns well with the SBTi’s objectives.
Target Setting and Tracking: SyncFrame can help companies set and track progress towards science-based targets.
Data Integration: SyncFrame’s technology platform can facilitate the collection and analysis of emissions data required for SBTi reporting.
Expert Guidance: SyncFrame’s advisors can provide support in developing and implementing science-based targets.

Reference Links/Resources: