The global Science Based Targets initiative (SBTi) has launched a new strategy to increase ambition in targets that corporations set to combat climate change.
Until now, SBTi called on firms to adopt targets aligning emissions cuts to a goal of “well below” 2 degrees Celsius. The new targets require a firm ceiling of 1.5°C.
The move is in line with the Paris Agreement and mounting scientific evidence that global warming should not exceed 1.5°C levels, as climate impacts could become increasingly severe beyond that point.
Science-based target setting now covers 20 per cent of the global economy, driving corporate decarbonisation. Between 2015 and 2020, companies with validated targets cut emissions by 25 per cent compared with an increase of 3.4 per cent in global energy and industrial emissions.
“SBTi has become the de facto standard for businesses to set credible targets to address the climate crisis,” said Lila Karbassi, SBTi Board Chair and Chief of Programmes at the UN Global Compact.
Since 2019, more than 600 companies from across the world have committed to making changes in line with the SBTi’s Business Ambition for 1.5°C campaign. The companies represent $13 trillion in market capitalisation.
Selwin Hart, Special Adviser and Assistant Secretary General for Climate Action at the United Nations, said, “Increasing the ambition level of the SBTi is a step in the right direction and provides a much needed clarity to businesses on setting credible emissions reduction targets. I urge all companies that have yet to set goals to do so and back their 1.5°C targets with clear and credible plans to achieve them.”
SBTi will focus on accelerating adoption and implementation of 1.5°C-aligned targets, particularly among companies in high-emitting sectors and across the Group of 20 countries. A new and independent technical decision-making body will help ensure the robustness of target-setting methods and standards.
Source: SBTi Launches New Strategy to Accelerate Corporate Decarbonisation – ESG News
About the Authors
Associate Director, Investment Banking
Prachurjya has over 16 years of experience in investment banking with Acuity Knowledge Partners. At Acuity, he has led sector and product-specialist pilot teams across Capital Markets, ESG, Debt Advisory, Loan Syndications, Metals & Mining and Real Estate. He has been actively involved in setting up and on-boarding new ESG Advisory, ESG DCM and Sustainable Finance teams for various bulge bracket investment banks. Within DCM and Rating Advisory, he has been instrumental in helping the clients achieve over 30% in annual savings on both regular and adhoc tasks through standardization of the outputs and deployment of our proprietary BEAT tools.
Delivery Manager, Investment Banking
Puja has 7 years of extensive experience in ESG, Climate Change & Sustainability and she is supervising the ESG team at Acuity. She also has diverse experience in conducting ESIA, EHS compliance audits, ESG Risks and Controls, EHS & ESG Due Diligence assessments. Prior to joining Acuity, she was working with companies like KPMG Global Services, EY India and ERM India. She has expertise in provisioning extensive research requirements for clients through preparation of Peer Benchmarking, Target Compilation, Sustainability report, Sustainable Finance Updates and Sectoral ESG Thematic Detailing Engagement.
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