The SBTi movement: science-based targets

The SBTi (Science Based Targets initiative) helps companies define science-based climate targets. These targets ensure that emission reduction strategies are in line with scientific recommendations to limit global warming to 1.5°C or 2°C, depending on the Paris Agreement. As a result, they enable companies to make an active contribution to the fight against climate change, while reinforcing their credibility with stakeholders.

SBTi is a joint initiative launched in 2015 by four major organizations:

• CDP (Carbon Disclosure Project)
• WRI (World Resources Institute)
• WWF (World Wide Fund for Nature)
• United Nations Global Compact

Its primary objective was to mobilize the private sector in climate action. Notably, it is one of the few international frameworks to combine scientific expertise with validation mechanisms tailored to companies of all sizes and sectors, ensuring maximum credibility.

Thanks to this collaboration, the approach is participative, rigorous and scientific, in order to successfully define and validate objectives based on climate science.

1. Rigorous methodology: each objective is assessed against scientifically validated climate scenarios. This ensures precise alignment with the trajectories defined by world experts.

    

2. Priority given to reducing direct emissions: SBTi requires companies to reduce their direct and indirect emissions (scopes 1, 2 and 3) according to trajectories aligned with 1.5°C warming. Carbon credits are not accepted as substitutes for these reductions for short-term objectives. It is therefore advisable to act on direct reduction projects before turning to offsetting via carbon credits.

    

3. Net zero and carbon credits: For companies aiming for net-zero targets, SBTi authorizes the use of carbon credits only to offset residual emissions after the maximum possible reductions have been achieved. These credits must come from robust, verified projects, such as those linked to long-term carbon elimination (e.g. carbon avoidance, reduction or capture projects). Our carbon credits are all derived from high-quality, Verra-verified and traceable reduction projects.

    

4. International recognition: SBTi has become a benchmark for investors, regulators and NGOs in less than ten years. Today, they are used in over 100 countries and in all major sectors.

To be validated by SBTi, targets must :

1. Aim for a climate ambition: Companies must commit to trajectories compatible with a maximum warming of 1.5°C or 2°C according to IPCC (Intergovernmental Panel on Climate Change) scenarios.
   • Why 1.5°C? Research shows that limiting warming to 1.5°C significantly reduces climate risks, notably rising sea levels and extreme weather events.
   • A progressive threshold: SBTi proposes differentiated approaches, with intermediate targets for companies unable to meet 1.5°C immediately.

      

2. Cover a broad scope: Targets must include :
   • Scope 1: The company’s direct emissions (e.g., combustion in its facilities).
   • Scope 2: Indirect emissions from purchased energy (e.g., electricity, heat).
   • Scope 3: Emissions from the value chain (upstream and downstream), which represents a significant proportion of total emissions (usually over 40%).
   • Interesting fact: For many sectors, Scope 3 represents more than 70% of total emissions. For example, in the fashion sector, this includes the production of raw materials, distribution and use of products.

      

3. Respect timeframes: Objectives must be achievable over a period of 5 to 15 years, to guarantee measurable results and avoid long-term strategies with no immediate action.
   • Short-term targets (5 years) are encouraged for more rigorous monitoring.
   • SBTi also recommends long-term targets, often up to 2050, to ensure complete decarbonization.

      

4. Adopt sector-specific approaches: Sector-specific methodologies (e.g., Science Based Targets for Financial Institutions, for banks) ensure that companies adopt reductions tailored to their operating context.

The SBTi target validation process comprises three main stages, each with specific sub-processes:

• Submission:
  • Companies submit their targets via a dedicated form on the SBTi platform.
  • Information required includes an emissions balance sheet, quantified targets for each scope, and supporting evidence for the methodologies used.
  • Cost: In 2023, standard validation fees range from $4,900 to $9,500, depending on company size. At Will Solutions (WILL), we offer a Carbon Footprint Assessment (CFA) starting at CAD 5,000, aligned with the ISO-14064 quality calculation standard.

     

• Analysis: A team of independent experts evaluates the objectives according to SBTi criteria, verifying in particular:
  • Alignment with climate scenarios.
  • Coverage of required scopes.
  • Consistency of timeframes and methodologies.
  • This stage generally takes 30 to 60 working days.

     

• Validation: If the targets are met, they are approved and published on the official SBTi website. The company receives a certificate and official recognition, reinforcing its credibility with stakeholders.

SBTi is aimed at all companies, whatever their sector or location, with recommendations tailored to specific sectors such as energy, industry or agriculture.

For example, in the aviation sector, Delta Air Lines has committed to reducing its emissions per passenger kilometer by 45% by 2035 (baseline 2019), covering Scopes 1, 2 and 3. This initiative illustrates how SBTi offers specific recommendations for a sector where emissions are difficult to bring down quickly.

SBTi shows your commitment to the Paris Agreement and positions your company as a climate leader. Over 5,000 companies have joined the initiative, representing around 35% of global GDP.

Investors are looking for companies aligned with ESG standards. What’s more, according to Morningstar, ESG funds will account for $2.7 trillion in assets under management by 2023. The SBTi commitment now facilitates access to this sustainable financing. Science-based targets (SBT) offer tangible proof of your decarbonization strategy.

Regulations are getting tougher. As a result, adopting SBTi allows you to plan ahead and limit your risks. For example, the European Green Taxonomy Framework imposes strict reporting obligations on emissions, and in Canada, the Anti-Money Laundering Act (Bill C-59) raises compliance and carbon disclosure requirements.

A study by the Carbon Discolure Project (CDP) shows that 79% of companies committed to SBTi-aligned climate targets are seeing a reduction in operating costs thanks to innovations and improvements in energy efficiency.

Furthermore, according to CDP, companies that commit to SBTi-compliant emissions reductions report financial gains and greater resilience in the face of market pressures.

An SBTi commitment inspires your teams, strengthens customer loyalty and attracts new partners. Unilever, for example, saw a 70% increase in consumer confidence after announcing its climate targets.

A carbon footprint identifies your main sources of emissions and pinpoints opportunities for reduction. For example, using tools such as the GHG Protocol makes it easier to identify the main sources of emissions.

Use the SBTi platform to calculate your required reductions. Use the free tools available, such as the Target Setting Tool, to define your trajectories to the highest standards.

Prepare a rigorous dossier with the support of expert partners. Then submit your objectives to SBTi to ensure compliance with climate standards.

Finally, monitor your progress to adjust your strategies and reach your targets. In the same way, ensure regular follow-up using key performance indicators (KPIs).

In short, Science-Based Targets offer companies a dual opportunity: to actively contribute to the fight against climate change, and to improve their market positioning. Adopting the SBTi movement means investing in a winning long-term strategy.

Finally, Will Solutions (WILL) is a B Corp-certified Quebec company and an expert in the voluntary carbon market. Thanks to WILL, you can measure your annual corporate emissions and offset them with VCS-certified carbon credits compatible with the SBTi movement!