What are Science-Based Targets?
Science-based targets (SBT) are targets that help companies define their journey to reduce greenhouse gas (GHG) emissions, helping prevent the worst impacts of climate change and future-proof business growth.-Targets are considered ‘science-based’ if they are in line with the goals of the Paris Climate Agreement.
Companies committed to the Science-Based Targets initiative are demonstrating that creating a climate-secure world goes hand-in-hand with successful business operations.
Some of the benefits companies who adopt science-based targets report that it boosts profitability, improves investor confidence, drives innovation, reduces regulatory uncertainty and, strengthens brand reputation.
Why should a company set Science-Based Targets?
Setting an SBT is proof of your commitment to the environment and will demonstrate your engagement with sustainability matters. There are multiple reasons why a company should set SBT.
Firstly, it will help secure future investments. Investors are increasingly searching for climate aware businesses who are aware of their obligations and challenges. New schemes, such as the Task Force on Climate-Related Financial Disclosure, are forcing the world’s largest and most influential investors to publish and mitigate their exposure to Climate Risk. If you cannot explain your Carbon Footprint you are likely to be seen as a risky investment. Larry Fink, CEO at Blackstone, the world’s largest investment group, has already launched “interventions” at board level. This includes over 50 global companies who are seen as being negligent about climate change planning, and another 119 companies have been placed on a grey list.
Secondly, a good product is no longer enough to win a consumer’s favour. Buyers want more than just quality, often looking for products and brands that align with their personal values. It seems obvious: why support a brand financially if they don’t agree with their social and environmental values? In the face of climate change, those of us who care enough are ready to consider the consequences of our shopping habits. As younger Generation X and Millennials move into decision making roles, it will be necessary to meet their priorities and match their expectations.
In the same way, young people looking for companies to apply to will routinely investigate their position on sustainability first before they even consider applying. Losing the best talent to your nearest competitors for lack of a considered sustainability policy is a double hit.
Furthermore, it will allow you to reduce operational costs. As you explore ways to reduce greenhouse emissions, you will find ways to minimise and eliminate unnecessary consumption and the processes that cost you time and money. Being environmentally savvy doesn’t mean that you have to sacrifice efficiency.
Additionally, it is generally accepted that adopting more sustainable business practices will make your business more stable, more resilient to change and more appealing to insurers, shareholders and potential partners. Like many aspects of business, sustainability thrives on knowledge and ignorance is simply not bliss in this area. We will inform you, arm you and prepare you for whatever changes are coming in regulation, enforcement and the commercial market.
And lastly, it will ensure you are ready to grasp new business opportunities. Climate change is a threat to the “business as usual” model but companies that adapt now will be able to take advantage of major opportunities which will appear as the world changes. At the very least you are more likely to survive than competitors who ignore the subject until it is too late.
What are the benefits of going Net Zero?
Demonstrating a commitment to managing your carbon footprint and environmental impact will help to improve your brand image in an increasingly green conscious climate.
It can save money through reduced energy consumption and waste costs, improving the overall efficiency of company operations.
You can be ahead of the curve for future compliance requirements, reviewing if your day-to-day activities are sustainable and meet detailed scrutiny.
It can improve employee engagement, keeping teams informed of their environmental roles and responsibilities.
How can Enistic help you to get SBT?
At Enistic we know how challenging it can be to set net-zero emissions targets that meet SBTi’s criteria. We work together with companies to develop SBT and ensure that they are validated. Moreover, we offer companies access to our carbon management platform that allows them to monitor their carbon emissions and compare them against their SBT. The platform facilitates the measurement, reporting, and management of an organisation’s emissions. Its sustainability data warehouse consolidates, validates, and enriches relevant data for dynamic analysis and informed decision-making. Additionally, it offers our clients a competitive and commercial advantage when it comes to corporate & reputational image.
Contact us now!
Book a free consultation with our Carbon Neutrality experts today and see how you can set up your SBTs.