Submissions To Science-Based Targets Soar Amid SBTi Governance Restructure

Submissions To Science-Based Targets Soar Amid SBTi Governance Restructure

Since its launch in 2014, the Science Based Targets initiative (SBTi) has grown its impact and reach, becoming the leading net zero standards organization. In the Verdantix Global Corporate Survey 2023: Net Zero Budgets, Priorities and Tech Preferences, 44% of respondents identified SBTi as extremely important to their work on climate disclosures in 2022.

In August 2023, the SBTi published its fourth summary report, which gives key growth data by geography, industry, emissions Scopes covered and reporting efforts as of December 2022. According to SBTi, 2,079 firms have validated science-based targets (SBTs). In 2022 alone, 1,097 organizations had their targets validated, including luxury brand Burberry, UK-based commercial bank NatWest and asset management firm Schroeders. This is more than the previous seven years combined, with an 87% year-on-year increase in targets validated since 2021. In 2022, an additional 1,287 firms committed to set SBTs within 24 months, which will bring the total number of those with target commitments to 2,151.

However, the SBTi has not been exempt from criticism about its integrity, transparency and credibility, which included a formal complaint of conflict of interest filed in 2021. In November 2022, the SBTi announced a new Commitment Compliance Policy, which came into effect on January 31^st 2023, aimed to increase transparency and enforcement with a more stringent approach for firms that failed to submit science-based targets within 24 months from the commitment date. To adjust to the new policy, the SBTi granted extensions to the end of July, but many organizations still failed to submit their targets on time and saw their targets removed. Amazon, the largest of the firms involved, announced they will nevertheless continue to work with SBTi.

In line with the new direction, on September 13^th the SBTi announced a governance transformation plan, which will entail the separation of its for-profit validation services from the standard-setting non-profit part of the organization. As part of the governance restructuring of the SBTi, Francesco Starace, ex CEO of ENEL, was appointed Chair of the SBTi’s Board of Trustees, and announced further measures to retain SBTi’s independence as a target setter and validator.

If you would like to learn more about how digital solutions support organizations’ efforts to set and track progress against net zero targets, please visit the Verdantix Net Zero & Climate Risk research portal.