Greenhouse Gas Emissions Reduction Target/Science-Based Targets (SBT) Setting

In recent years, the risks and opportunities brought by climate change have been continuously emerging in the operation and development of companies. With the continuous strengthening of various domestic and international regulatory agencies on company climate change-related disclosure, more and more international investors will incorporate a company's climate change risk management, SBT setting, etc., into the critical reference of investment decisions. Scientifically addressing the risks brought by climate change and setting SBT will become required skills for companies to turn risks into opportunities.

What are science-based targets

The Science Based Targets Initiative (SBTi) is a global initiative launched in 2015 by WWF in partnership with CDP, WRI and the UN Global Compact (UNGC) to help companies set science-based emission reduction targets that meet the 2°C decarbonisation level of the UN Intergovernmental Panel on Climate Change's (IPCC) Fifth Assessment Report.

SBTi provides target-setting tools, associated guidance documents, SBT-based best practices, and industry-specific customised resources to help companies set their SBTs. At the same time, SBTi's technical experts will independently assess and approve the targets set by companies.

Why companies should set science-based targets

As the indisputable fact of climate change and rising global temperatures becomes more widely accepted, the global transition to a low-carbon economy is accelerating. Every country and every industry will experience this low-carbon transformation. Internationally, industry leaders such as Walmart, Dell, Hewlett-Packard and Coca-Cola have recognised this opportunity and are actively setting ambitious scientific carbon targets.

Through scientific emission reduction and target setting, companies can not only position themselves against the risks brought about by climate change but also usher in the opportunities it brings, ensuring compliance and improving their competitive edge. Meanwhile, companies will gain the attention of more international quality investors, partners and other stakeholders and achieve long-term sustainable development.

  • Enhance innovation and build competitive advantage

The transition to a low-carbon economy will facilitate the development of new technologies and operational practices for businesses, creating a competitive advantage.

  • Reduce the risk of non-compliance and uncertainty

Setting ambitious carbon reduction targets can help companies stay ahead of the curve in terms of compliance with policies and regulations related to greenhouse gas emissions.

  • Improve investors’ confidence

Companies that are leaders in climate change management can enhance their credibility and reputation with stakeholders such as investors, customers, employees, government agencies and NGOs. According to SBTi, about half of consumers worldwide believe that climate change will negatively impact their productivity, and 65% of consumers believe that human activities cause climate change.

  • Improve profitability as well as competitiveness

Setting ambitious carbon reduction targets can help companies become more energy efficient and sustainable in an increasingly resource-intensive future.

How companies can set science-based targets

Generally speaking, setting SBT includes submitting a commitment letter, developing the SBT, submitting the SBT for validation, and announcing the approved SBT.

CECEPEC is a professional sustainability consultancy that provides companies with a wide range of services according to their sustainability needs, including greenhouse gas emission management services, carbon emissions reduction target setting, etc. Please contact us if you need any assistance.

  • Step 1：submitting a commitment letter

A signed commitment letter indicates that your organisation will work towards setting science-based emission reduction targets. If your business already has emissions reduction targets, then the letter will confirm your organisation's interest in independently validating your organisation's existing targets against a set of criteria developed by the SBTi.

  • Step 2：developing the SBT

Once signing and submitting a target commitment letter, a company will have up to 24 months to develop and submit the SBT for official verification.

  • Step 3：submitting the SBT for validation

After developing the target, the company should complete the "Target Submission Form" and submit the Word version of the form by email to targets@sciencebasedtargets.org

  • Step 4：announcing the approved SBT publicly

Once the target is approved, the company and its target will be displayed on the SBTi website and other communication channels. And the company will also be able to use the SBTi logo on its website and communication channels. In addition, companies will also receive a welcome pack and can contact the SBTi team members.

© 2023. Copyright owned by CECEPEC. Please see Privacy Policy and Cookies Policy for more information.

The information contained herein is for general reference only. The Group does not warrant or represent that the information provided here is complete and accurate at the time of receipt or in the future due to factors such as policy updates and market changes. No liability will be accepted for any actions taken relying on the information herein without considering the circumstances and obtaining appropriate professional advice.All contents of the article, such as text, graphics, images, photos, logos, trademarks, datas and software (“Contents”), are protected by intellectual property laws and treaties in Hong Kong and elsewhere. Permission is always required if you want to reproduce or change the article. Please do so in the original language without modification, and cite the source. If you want to change the content, please obtain prior written consent from CECEP Environmental Consulting Group (“CECEPEC”).The trademark and trade name CECEP® shall not be used in any way, without prior written permission from CECEPEC, and you shall not refer to CECEPEC or its licensors in any public medium for promotional or advertising purposes, or otherwise, or for the purpose of influencing a third party. If you have any comments or questions, please contact inquiry@cecepec.com.