Glossary
Science-based target
A science-based target (SBT) refers to a company's goals to reduce greenhouse gas emissions which are in line with what the latest climate science says is necessary to meet the goals of the Paris Agreement. To determine such targets, scientific data is utilized to specify how much and how swiftly the company needs to reduce its greenhouse gas emissions.
These targets are established to prevent the global temperature from rising beyond 2°C, which is what international scientists have identified as the threshold beyond which the effects of climate change could become substantially more dangerous. Companies set these targets within a specified timeframe to monitor progress and improve upon their environmental strategies.
Setting a science-based target begins with the organization determining the total amount of carbon emissions it is responsible for, also known as its carbon footprint. This includes emissions from sources within the organization, known as scope 1 and scope 2 emissions, and those that result from the activities of the organization but occur from sources not owned or controlled by the organization, known as scope 3 emissions.
Through setting science-based targets, companies are not just contributing to the global fight against climate change, they also become more innovative, resilient and profitable. These targets can help companies to reduce operational costs by identifying inefficiencies and areas for improvement, while also future-proofing their growth by anticipating regulatory changes and consumer demands.
Science-based target-setting also presents a proactive approach towards maintaining the reputation and reducing the risk factors for businesses. Many investors and stakeholders now consider a company’s commitment to sustainable practices when making decisions, so using these targets signals a company’s commitment to sustainability.
In conclusion, science-based targets are more than a corporate sustainability trend. They represent a significant shift in the way companies approach their environmental responsibilities and showcase a commitment to a sustainable future.