Frequently asked questions on SBTi
SBTi is the abbreviation for the Science Based Target Initiative. Several organizations have joined forces and developed guidelines to help companies reduce their greenhouse gas emissions based on science.
The SBTi guidelines help companies reduce GHG emissions in line with the goals of the Paris Agreement. In this way, science-based targets are intended to contribute to keeping average global warming below the two-degree limit.
Science-based targets are not required but are highly recommended as it helps your company to save money, increase competitiveness and become more attractive to investors and other stakeholders.
A science-based target not only has a positive impact on the environment but can also significantly increase the competitiveness and reputation of your company. You can boost your resilience in terms of upcoming regulations and follow a concrete emission target commitment.
Each company must go through a multi-step process to have science-based targets that are validated by the SBTi.
A corporate carbon footprint in line with the GHG Protocol is a prerequisite for setting science-based targets. This includes the calculation of all scope categories and consideration of subsidiaries etc.
A corporate carbon footprint must be made publicly available every year and the science-based target needs to be communicated by the company.
The SBTi has already developed and continues to develop more guidance documents and respective criteria for different sectors. Examples are the standard for financial institutions or the FLAG standard.
Currently, the standard does not imply any consequences. Nevertheless, the initiative is already working on a measurement, reporting, and verification standard planned to be published in 2023. Apart from the SBTi process, companies are hold accountable to take their targets seriously via transparency. Disclosing your carbon footprint and progress-against-targets on a yearly basis makes your climate performance transparent towards your stakeholders.