Emissions reduction goals often lead to reductions in cost and increases in operational efficiency. SBTs take this further in challenging businesses to align with the net zero economy. This means developing a roadmap for the short- and medium-term to meet the longer-term vision. Being part of this global initiative both differentiates your company and means you are part of a bigger movement. Working together increases the chance of delivering the necessary carbon reductions.
Setting goals can inspire new solutions and product offerings. The long-term nature of a SBT encourages long-term planning for the development of solutions, technologies and financing.
Garnering credibility in the sustainability space by committing to an SBT in a transparent and ambitious manner can prove beneficial with investors, consumers and other stakeholders. Rather than simply setting a target you think we can meet, setting an SBT means putting your company on track for where you – and the world – need to be by 2050.
Targets can work to both signal to policy makers that businesses are taking climate science seriously and to help businesses adapt to future policy change. Having a science-based target can help you to build positive relationships with government and regulatory bodies.
Not having an SBT raises a red flag that companies are failing to manage climate risk. Methodologies that enable targets to be directly aligned with the latest science provides extra incentives and a trajectory for future years. Furthermore, SBTi is a collaboration between CDP, the United Nations Global Compact, World Resources Institute and the World Wide Fund for Nature. This official quality check, based on rigorous analysis and grounded in science, gives companies confidence in their plans.