The Science Based Targets Initiative (SBTi) has reported on the impacts of four years of work with businesses to set emissions reductions targets. The report findings amount to “a clear signal that the transition to a low-carbon economy is underway,” SBTi argues, as private sector action can lead governments to set more ambitious policies and regulations.

SBTi is a collaboration between CDP, the UN Global Compact, World Resources Institute (WRI) and World Wide Fund for Nature (WWF). Since its launch in 2015, over 680 companies have made a commitment to set science-based targets. Each participating company develops targets in a 24-month process and submits them to SBTi, which assesses them against scientific criteria.

The report titled, ‘Raising the Bar: Exploring the Science Based Targets initiative’s progress in driving ambitious climate action,’ was published on 4 December 2019. It finds that:

• A total of 285 companies have set greenhouse gas (GHG) emissions reduction targets in line with scientific guidance on averting dangerous climate change and meeting the goals of the Paris Agreement on climate change. Of those 285 companies, 76 have set even more ambitious goals, aligning with limiting warming to 1.5°C above pre-industrial levels. 
• Meeting the targets of these 285 companies would mean an emissions reduction of 265 million metric tons of CO2 equivalent, which SBTi says is approximately equivalent to closing 68 coal-fired power plants.
• The 285 companies’ targets also will “drive investment of up to USD18 billion in climate change mitigation and spur up to 90 TWh of annual renewable electricity generation.”

In some sectors, SBTi reports that over 20% of the high-impact companies have set science-based targets for emissions, showing that it is becoming standard business practice. These sectors include: apparel, biotechnology, food and beverage, healthcare, hospitality, information technology, pharmaceuticals and telecommunications. The report also notes that science-based targets have been approved for companies in high-emitting industries, such as cement, steel, chemicals and automobiles.

According to Alexander Farsan, WWF, the participating companies “are proof that acting on climate science goes hand-in-hand with a successful business and economy” He added that companies that do not reduce their emissions according to scientific guidance “risk being left behind.”

Among other highlights, the SBTi reports that Japan’s Ministry of Environment set a goal of having 100 Japanese companies with approved targets by 2020. By the end of October 2019, 52 Japanese companies had already done so. The report also finds that in emerging market countries, only a few companies have set science-based targets, with the exception of India, which has nine companies with approved targets.

As of 30 January 2020, the ‘Companies Taking Action’ tracking tool on the SBTi website shows that 732 companies are taking science-based climate action, and 312 companies have approved science-based targets. The tool allows users to sort by company name, sector, location, and status (committed or targets set), among other information. [SBTi Press Release] [Publication: Raising the Bar: Exploring the Science Based Targets initiative’s progress in driving ambitious climate action] [Tool for tracking participating companies]