Science Based Targets Initiative

Definition

The Science Based Targets Initiative (SBTi) is a global body that encourages companies to set greenhouse gas emissions reduction targets in line with climate science and the goals of the Paris Agreement. It aims to ensure that businesses contribute to the transition to a low-carbon economy by establishing clear and measurable targets that help limit global warming to 1.5°C or 2°C above pre-industrial levels. This initiative plays a crucial role in addressing both resource depletion and ecosystem degradation as well as climate change.

5 Must Know Facts For Your Next Test

1. The SBTi was launched in 2015 and has since gained significant traction, with thousands of companies committing to science-based targets.
2. Targets set under the SBTi are validated based on rigorous scientific criteria to ensure they are credible and achievable.
3. Companies that participate in the SBTi must regularly report their progress towards their emissions reduction targets to maintain transparency and accountability.
4. The initiative not only helps companies reduce their emissions but also encourages innovation and investment in sustainable technologies.
5. By aligning corporate strategies with scientific climate goals, the SBTi helps mitigate risks associated with climate change, including resource depletion and ecosystem degradation.

Review Questions

• How does the Science Based Targets Initiative influence companies' strategies regarding climate change?
  • The Science Based Targets Initiative influences companies' strategies by encouraging them to align their greenhouse gas emissions reduction targets with scientific evidence on climate change. By committing to science-based targets, companies are motivated to implement sustainable practices, innovate technologies, and improve energy efficiency. This alignment ensures that their efforts contribute significantly to the global goal of limiting temperature increases, thereby promoting long-term sustainability in their operations.
• Discuss how the SBTi can help address the challenges of resource depletion and ecosystem degradation.
  • The SBTi helps tackle resource depletion and ecosystem degradation by pushing companies to adopt sustainable practices that minimize their environmental impact. When companies set science-based targets, they often focus on reducing energy consumption, improving resource efficiency, and lowering emissions. This not only helps preserve natural resources but also supports healthier ecosystems, as lower emissions lead to less pollution and habitat destruction, ultimately contributing to a more sustainable environment.
• Evaluate the role of the Science Based Targets Initiative in shaping future corporate policies towards sustainability and climate action.
  • The Science Based Targets Initiative plays a pivotal role in shaping future corporate policies by providing a structured framework for organizations to commit to measurable sustainability goals. As more companies adopt science-based targets, it creates a ripple effect within industries, fostering a culture of accountability and transparency. The initiative also influences regulatory policies as governments look toward corporate commitments for guidance in environmental legislation. Overall, the SBTi drives systemic change by aligning business practices with global climate objectives, positioning sustainability as integral to corporate strategy.

Related terms

Greenhouse Gas Protocol: A widely used accounting framework that provides standards and guidance for companies to measure and manage their greenhouse gas emissions.

Paris Agreement: An international treaty on climate change that aims to limit global warming to well below 2°C and pursue efforts to limit the temperature increase to 1.5°C.

Carbon Footprint: The total amount of greenhouse gases emitted directly or indirectly by an individual, organization, event, or product, usually expressed in carbon dioxide equivalents.