Setting a target
The Science Based Targets Initiative presents a 5-step process to set a target:
- Commit: Start by registering online and submit a commitment letter. Once your company has committed, you will have two years to submit targets to the SBTi.
- Develop: Within two years of committing, you will develop a near-term science-based target and will have the option to set a long-term net zero target:
- Near-term targets: All companies setting SBTs must set a 5-10 year target from the submission date. The target must cover at least 95% of scope 1 and 2 emissions and 67% of scope 3 emissions if value chain emissions represent more than 40% of your company’s greenhouse gas emissions inventory.
- Long-term targets: These targets must align with the SBTi Net Zero standard. They will cover at least 95% of scope 1 and 2 emissions as well as a minimum of 90% of your company’s scope 3 emissions.
- Submit: Forms must be completed for both near-term and net-zero targets. You can book validation services where SBTi experts will review your submission and provide feedback on your targets. The cost of validation ranges from $1000-$14,500.
- Communicate: Once your target is approved, you will be encouraged to communicate this achievement with your stakeholders.
- Disclose: Companies should monitor and report their progress towards reaching their science-based targets. These disclosures can be done in annual sustainability reports or via public disclosures with the CDP.
Small & medium-sized enterprises
SMEs benefit from a streamlined approach to setting a science-based target. SMEs are defined by the SBTi as independent, non-subsidiary companies with fewer than 500 employees.
By completing the streamlined approach, SMEs can set:
- Near-term targets: Companies commit to achieving absolute reductions in their scope 1 and 2 emissions as well as to measure and reduce their scope 3 emissions. The measurement of greenhouse gas emissions should follow the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard. Scope 1 and 2 emission inventories and the reduction progress should be publicly reported.
- Net-zero science-based targets: Companies commit to achieving both near-term and long-term targets, requiring companies to reduce absolute emissions across scopes 1, 2 and 3 by at least 90% by 2050. Residual emissions should be neutralised and permanently removed from the atmosphere. Inventories and progress towards targets should also be publicly reported.
How Emitwise can help
Emitwise provides the fundamentals for science-based target setting. A rigorous and accurate scope 3 emissions assessment will be required for your company to confidently set a target with a representative baseline of your value chain emissions.
Emitwise’s trusted partners can support you through the SBTi submission process, leveraging the emission inventory calculated through the Emitwise platform. Companies will also benefit from the platform’s target setting and tracking functionality to monitor their progress.