Some large corporations are leading the way in a bid to tackle climate change with science-based targets. What are the benefits of committing to these emissions reductions and how can your business get involved?
WHAT ARE SCIENCE-BASED TARGETS?
Science-based targets came about as a result of the Paris agreement in 2015. In this legally binding treaty, 195 parties committed to limiting global warming to below 2 degrees Celsius compared to pre-industrial levels. Then in 2018, the Intergovernmental Panel on Climate Change said that global warming should not exceed 1.5 degrees Celsius.
To achieve this, GHG emissions must halve by 2030, and drop to net zero by 2050. A ‘science-based’ emissions target stays in line with the scale of reductions required to meet these objectives. These goalposts track progress and give the private sector a clear idea of how quickly they need to reduce their GHG emissions to prevent the worst impacts of climate change.
In the global race towards net zero, science-based targets will become crucial for business growth across the sectors. Not only do they help tackle climate change, but they boost a company’s competitiveness in a changing market.
A UNITED INITIATIVE
The Science Based Targets initiative (SBTi) was set up by CDP, World Resources Institute (WRI), the World Wide Fund for Nature (WWF), and the United Nations Global Compact (UNGC). The group supports companies that have set science-based targets. They have found that the positive effects for these businesses include increased innovation, strengthened investor confidence and improved profitability.
The STBi also:
- Defines and promotes best practice in science-based target setting via the support of a Technical Advisory Group.
- Offers resources, workshops and guidance to reduce barriers to adoption.
- Independently assesses and approves companies’ targets.
WHAT ARE THE BENEFITS OF SETTING SCIENCE-BASED TARGETS?
There are many benefits to setting science-based targets. By significantly reducing emissions, you are not only building a brighter future for the planet but a potentially profitable one for your business.
Here are some of the benefits of setting science-based targets:
- Illustrate excellent CSR – For large corporates there is a growing responsibility to take action against climate change, science-based targets are a way to do this.
- Deliver a competitive advantage – Integrating environmental policies into your business strategy helps your business stand out in a crowded marketplace.
- Involve the whole company – Engage with internal and external stakeholders to help your business achieve or even exceed targets.
- Reduce large costs – Lowering emissions often requires a closer look at your energy portfolio and making your utilities as efficient and low carbon as possible. This can result in significant savings for your business.
- Investor confidence – 52% of execs have seen investor confidence boosted by targets. As TCFD recommendations come into play and climate-related risks become more important, this will only become more prevalent.
- Increase innovation – 63% of company execs say science-based targets drive innovation.
HOW DO YOU SET A SCIENCE-BASED TARGET?
There are three approaches to setting a science-based target (SBT):
- Sector-based approach – The global carbon budget is divided by sector and emission reductions allocated to individual companies based on its sector’s budget.
- Absolute-based approach – All companies will equally work towards the same per cent reduction in absolute emissions.
- Economic-based approach – A carbon budget is equated to global GDP and a company’s share of emissions is determined by its gross profit since the sum of all companies’ gross profits worldwide equate to global GDP.
HOW CAN BUSINESSES GET INVOLVED?
For a business to get involved in the initiative there is a simple 4 step process to follow:
- Submit a letter to say you are committed to the scheme.
- Develop your own science-based target within 24 months.
- Submit your target for validation.
- Announce your target.
838 companies are currently taking science-based climate action and 343 companies have approved science-based targets.
HOW EIC CAN HELP
Creating science-based targets is essential for businesses of every size as we progress towards net zero targets. To create these targets, a business must first understand its consumption. At EIC we offer a range of comprehensive services that can help you help your business.
We are already partnering with leading UK private and public sector organisations – supporting them to transform their operations in line with ambitious targets. This will help them future-proof their business and save the planet.
EIC can assist in meeting your science-based targets by:
- Establishing your carbon footprint to act as your baseline.
- Provide recommendations to reduce your carbon impact.
- Set your target to reduce your carbon footprint to meet the 1.5°C objective.
- Create an ongoing Carbon Management Plan.
- Create and publish all documentation required for the scheme.
- Work with you to embed the strategy into your business.
To learn more about EIC’s carbon and net zero services, contact us today.