How to Set and Achieve Science-Based Targets for Sustainable Growth

In an era where corporate responsibility is becoming non-negotiable, setting and achieving science-based targets has become a vital step toward sustainable business practices. The Science-Based Targets initiative (SBTi) offers a powerful framework for organizations aiming to curb greenhouse gas (GHG) emissions in line with the latest climate science. Setting targets through SBTi isn’t just about reducing emissions; it’s about embedding sustainable growth into a company’s DNA. Here, we’ll cover the practical steps to define, implement, and measure science-based targets, driving long-term value while meeting climate commitments.

Step 1: Understand SBTi and Its Importance

The first step in adopting science-based targets is to understand what SBTi entails. SBTi is a global standard for setting GHG reduction goals in alignment with the Paris Agreement, aiming to limit global warming to well below 2°C, with efforts toward 1.5°C. This alignment means that a company’s targets are not arbitrary but scientifically backed, setting measurable and realistic milestones to mitigate the effects of climate change.

Step 2: Establish a Baseline for Emissions

An essential part of setting science-based targets is establishing a baseline. Companies need to measure their current emissions across all scopes—Scope 1 (direct emissions), Scope 2 (indirect emissions from purchased energy), and Scope 3 (all other indirect emissions, such as those associated with the supply chain). Conducting an in-depth carbon footprint analysis provides a clear understanding of the current emissions profile, helping to identify where reductions are most critical and feasible.

Step 3: Set Clear and Achievable Targets

Once a baseline is established, the next step is to set clear, time-bound targets that meet SBTi’s criteria. For many companies, this means setting interim goals (e.g., a 20% reduction by 2030) on the path to net-zero emissions. SBTi provides several target-setting methodologies that companies can adopt based on industry, emissions profile, and overall sustainability goals. Choosing the right approach, such as the Absolute Contraction Approach or the Sectoral Decarbonization Approach, ensures that targets are ambitious yet achievable within the company’s operational capacity.

Step 4: Develop an Action Plan

Targets without a roadmap can quickly lose momentum. To make science-based targets actionable, create a comprehensive plan that includes specific initiatives, timelines, and resources needed for each phase. For instance, reducing Scope 1 emissions may involve upgrading equipment or increasing energy efficiency in operations, while Scope 3 reductions might focus on working with suppliers to ensure they are also committed to emissions reduction. The action plan should outline these initiatives, budgets, and responsibilities to ensure accountability across departments.

Step 5: Implement Emissions Reduction Initiatives

With an action plan in place, it’s time to begin implementing reduction initiatives. This might involve transitioning to renewable energy, investing in energy-efficient technologies, optimizing logistics to reduce emissions, or educating employees on sustainable practices. Tracking progress through regular emissions assessments is essential, as it allows companies to identify areas that need additional focus and resources. Adjusting strategies along the way is critical to achieving the set targets effectively.

Step 6: Monitor and Report Progress

SBTi requires companies to monitor and report their progress regularly. This transparency is critical, not only for staying accountable but also for building trust with stakeholders. Regular reporting through ESG disclosures or sustainability reports should highlight progress, challenges, and any adjustments made to stay on track. Companies should also communicate how achieving these targets contributes to broader sustainability goals, enhancing their brand reputation and investor confidence.

Step 7: Validate and Update Targets

As business environments and scientific recommendations evolve, so too should a company’s science-based targets. Validation by SBTi provides assurance that the targets are in line with global climate goals. Periodic reassessment is also crucial, as it enables companies to make adjustments based on new data, technological advancements, and shifts in regulatory requirements.

How PQSmitra Can Support Your SBTi Journey

At PQSmitra, we understand that adopting and achieving science-based targets can be challenging, especially with the need for precise measurement, strategic planning, and ongoing reporting. Our ESG consultancy offers end-to-end support in defining, implementing, and tracking science-based targets. From baseline assessments to emissions reporting, we provide the tools, expertise, and guidance needed to embed sustainable growth into your organization’s core operations. Let us help you turn science-based targets into a tangible, actionable part of your ESG journey, positioning your business as a climate leader in today’s competitive landscape.