SBTi – Commit to reduce greenhouse gas emissions

1004 Companies committed

SBTi – Commit to reduce greenhouse gas emissions

Leading businesses recognise the opportunity – and the imperative – to be part of the zero-carbon transition. Their future growth and competitiveness depends on it.

By setting bold, ‘science-based’ emissions reduction targets, companies can future-proof growth by ensuring their plans for carbon reduction meet the level of ambition needed to limit the increase in global average temperature in line with the goals of the Paris Agreement.

Science-based targets enable companies to play their part in achieving these goals while harnessing climate action as a driver of innovation, competitiveness, risk management and growth.

When setting science-based targets, companies are expected to set targets for all relevant sources of emissions, including long-lived and short-lived climate pollutants.

Companies can develop targets via the Science Based Targets initiative (SBTi). The SBTi is a collaboration between CDP, the United Nations Global Compact (UNGC), World Resources Institute (WRI) and the World Wildlife Fund for Nature (WWF).

How companies can engage in this initiative:

Companies wishing to make this commitment are asked to follow the steps outlined below:

Submit a commitment letter, indicating that your company will work to set a science-based target.
Develop a target: Once your company signs the commitment letter you will have up to 24 months to develop a target that aligns with the SBTi criteria for science-based targets. The initiative supports companies by providing methods and resources for target setting, as well as a sectoral decarbonization tool (SDT).
Submit your target for validation: Once your target has been developed, you can fill out and submit the target submission form for assessment against the criteria.
Announce the target: On confirmation that the SBTi criteria are met, your target will be showcased on the SBTi website, the We Mean Business coalition website and across a number of partner platforms.

Companies are urged to set the ambition of their science-based target at the highest level through the Business Ambition for 1.5°C campaign, led by the SBTi, in partnership with UNGC and the We Mean Business coalition. This urgent call to action demonstrates climate leadership with a commitment to ensure a company’s science-based target is aligned with limiting global temperature rise to 1.5°C above pre-industrial levels. This requires halving greenhouse gas emissions by 2030 and hitting net-zero emissions by 2050.

In order to match climate ambition with robust, actionable strategies to accelerate the systems transformation we need, companies are also urged to collaborate with WBCSD’s SOS 1.5 project. SOS 1.5 aims to support companies around the world and from all sectors to stay within the 1.5°C safe operating space.

Net-Zero 2050

The Net-Zero 2050 Team is a leadership group of CEOs and their companies, who are working together to accelerate the just transition to net-zero greenhouse gas emissions by 2050. They each have committed to set a science-based target, and further pledge to phase out all greenhouse gas emissions by January 1, 2050. They also pledge to use their influence to advocate for policies that support an economy-wide transition to net-zero greenhouse gas emissions by 2050.

The Net-Zero 2050 pledge is formally recognised as part of the We Mean Business coalition’s Take Action campaign and is a collaboration with the Science Based Targets initiative.

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The Business Case

1. Increasing innovation

The transition to a zero-carbon economy will catalyze the development of new technologies and operational practices. The companies that set ambitious targets now will lead innovation and transformation tomorrow. In a recent survey, 63% of company executives said that their science-based target helped to drive innovation.

“By having ambitious targets – and our GHG reduction target approved through the SBTi – we have cemented ourselves as a strong player in the renewable energy market. We’ve been able to turn climate risk into a business opportunity.”
– Filip Engel, Senior Director of Group Sustainability, Public Affairs and Branding at Ørsted.

2. Reduce regulatory uncertainty

Taking ambitious action now helps companies stay ahead of future policies and regulations to limit GHG emissions. Companies that are seen as leaders are better able to influence policy makers and help shape developing legislation. In a recent survey, 35% of company executives said they have increased regulatory resilience thanks to science-based targets.

“Setting science-based targets helps ensure our business is resilient, ready for climate change and prepared to adapt to the changing regulatory and business environment.”
– Nate Hurst, Chief Sustainability and Social Impact Officier, HP Inc.

3. Strengthen investor confidence and credibility

Companies taking a leadership position on climate bolster their credibility and reputation among stakeholders, including investors, customers, employees, policymakers and environmental groups. In a recent survey, 52% of executives have seen investor confidence boosted by their science-based target.

“This is about how we want to be seen as a company, about what it means to be a responsible corporate citizen; it is also what our customers expect from us. By setting science-based targets we are ensuring our own sustainability, as well as supporting the needs of businesses in the future. Our customers need to know we have their back and can help them reduce energy use in the long term.”
– John Pflueger, Dell’s Principal Environmental Strategist

4. Improve profitability and competitiveness

Setting ambitious targets now ensures a lean, efficient, and durable company in a future where resources become increasingly more expensive – particularly resources derived from fossil fuels. Rising prices of raw materials can mean the difference between profit and loss. In a recent survey, 55% of company executives said they have gained a competitive advantage from their science-based target.

“Having a science-based target helps keep us on track. It means we know what we need to do in the short and medium term to meet the longer-term vision. By being part of the global initiative we know we are part of a bigger movement.”
– Keiko Shiga from Sony’s Quality & Environmental Department

Commmitted Companies

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SBTi – Commit to set a near-term, science-based target

SBTi – Commit to achieve an approved science-based target