Initially aimed at securing commitments from 100 of the world’s largest emitters, the Science Based Targets initiative (SBTi) has now enabled over 5000 organizations to set science-based emission reduction targets over the past decade. In response to the escalating climate crisis, SBTi is transitioning from an initiative to a formal voluntary standard-setter to strengthen the credibility and integrity of science-based targets.
What Are Standards and Standard-Setters?
A standard, as defined by the International Organization for Standardization (ISO), is a document providing rules or guidelines for consistent action towards a goal. SBTi’s technical standards set decarbonization benchmarks, ensuring organizations use consistent methodologies.
Standard-setters develop, publish, and maintain standards, collaborating with stakeholders to establish best practices and policies. They also manage complaints and ensure continuous monitoring and evaluation of standards.
Key Steps in SBTi’s Transformation
- Technical Council Formation: An independent body was established in 2023 to review and approve SBTi standards.
- Entity Separation: SBTi is splitting into The SBTi (standard-setting) and SBTi Services Limited (target validation).
- Standard Operating Procedure: A new SOP guides standard development, ensuring rigorous processes.
- Membership Preparation: SBTi is formalizing internal policies and developing a quality management system to meet international standards.
- Standards Development: SBTi is revising and developing standards for various sectors, including Net-Zero Standards for Corporates and Financial Institutions.
By becoming a voluntary standard-setter, SBTi aims to enhance corporate sustainability practices and drive significant progress towards a sustainable future. This transformation will provide companies and financial institutions with greater confidence in their climate commitments, ensuring they align with necessary global targets.
