What is SBTi? 

The Science Based Targets Initiative (SBTi) provides a clear and transparent framework for companies and other organisations to quantify their baseline scope 1, 2 and 3 emissions, and sector-specific emissions, using internationally recognised methods. It further provides clearly defined pathways for organisations to set relevant near- and long-term targets to reduce emissions that are in line with meeting international climate change targets and/or attaining net zero. 

Since the initiative was launched in 2015, over 3000 companies worldwide have set science-based targets and over 2000 have made net-zero commitments. These numbers are expected to increase further as consumer pressure rises and as companies already committed to achieving targets place pressure on other organisations, up and down their value chain, to also make responsible commitments.  

How can your company set science-based targets? 

SBTi encourages companies of all sizes from all sectors to commit to setting science-based targets. They recognise differences between businesses and have developed sector-specific advice and pathways to achieve targets. 

Nevertheless, the process to set science-based targets for all companies is similar and is relatively straight-forward: 

• Commit - Submit a letter establishing your intent to set science-based targets 
• Develop – Define your scope and establish your baseline scope 1,2 and 3 emissions*. Assess the baseline and set near-term (to achieve within 10 years) and long-term (to achieve by 2050) scope emissions reduction targets that line with the SBTi's criteria. 
• Submit – present your target to the SBTi for official validation 
• Communicate – announce your target and inform your stakeholders 
• Disclose – report company-wide emissions and track target progress annually. SBTi expects companies reduce their emissions consistently in line with the science-based targets the company sets. If your company fails to achieve these annually, your certification with be expired and your company name will be marked as removed on the SBTi list. 
• Additionality – invest or take action outside of the SBTi targets to help mitigate climate change elsewhere. 

* The types of emissions may slightly vary for different sectors. For example, companies ??? forest, farming, and agricultural sectors, plus food, drink and other companies who rely on these sectors, will also need to measure FLAG emissions which include emissions associated with land management. 

What are FLAG emissions? 

Under SBTi, there are specific FLAG science-based targets related to land-intensive sectors. These include sectors which produce or source materials from Forestry, Land and Agriculture activities, as well as other sectors that influence land-use change through their activities. Farming and forestry organisations are clear examples. However, companies where 20% of their scope emissions come from FLAG sources, including food, beverage and paper companies who have land-intensive activities in their value chain, must also commit to FLAG targets. 

FLAG targets address emissions associated with land management. These incorporate emissions land use, for example, tilling and ploughing land, plus emissions released and removed from managing land, for instance, changing the levels of forest, wetland and hedgerow coverage and the amounts of organic matter in soils. 

Notably, FLAG is not the only additional sector-specific protocol. The SBTi provides specialist advice on measuring different types of emissions and setting and achieving sector-relevant targets for a range of other sectors including power, finance, information and communication technology, apparel, and footwear, and maritime.  

Where does carbon offsetting and insetting come in to SBTi? 

Carbon offsetting is the process through which a set amount of carbon released into the atmosphere from one source/activity/place, is offset by the equivalent amount being removed from the atmosphere from another source/activity/place. 

Carbon insetting is similar to offsetting. However, while offsetting is when an organisation seeks to compensate for their own carbon emissions by seeking to offset emissions elsewhere, insetting involves an organisation implementing methods to compensate emissions internally within its own supply chain. 

For example, a food producer who relies on a farm supplier for its raw ingredients and processes ingredients in its factories can compensate for production emissions by either  

• Offsetting emissions by supporting a forestry project at any site. 
• Insetting emissions by working with the supplier farmer, who is within their supply chain, to support them to forest areas of their land sufficient to compensate production emissions. 

The SBTi requires that organisations set targets focused on reducing their emissions within their own boundaries and value chains. For many years, researchers have been exploring various scenarios that limit climate change and have generally found that directly reducing the levels of emissions released in the first place is more effective than compensating emissions already released. Additionally, it reduces the need to remove carbon using removal technologies, which some researchers suggest could have adverse effects on the environment and other aspects of the sustainable development goals. Because of this, SBTi focus on mitigation pathways to limit climate change, with limited reliance on carbon removals. 

Consequently, SBTi does not approve carbon offsets as an appropriate means through which organisations can meet reduction targets. Offsets may only be considered as an option for organisations seeking to invest or take action in reducing emissions beyond, and in addition to, their SBTi targets. 

With insetting, further research is being done to standardise a clear definition and accounting methodologies. Hence, the SBTi says it will “assess insetting projects on a case-by-case basis during the validation process and may not approve their use.” 

Benefits of your business joining the SBTi? 

• Credibility: SBTi standards are internationally recognised and are based on the latest science-based research. They therefore allow your business to set appropriate, accredited sector-relevant targets based on tangible, reliable, numerical evidence.  
• Reliability: By measuring and monitoring emissions according to an internationally recognised criteria, and by taking actions to reduce emissions that are validated, externally accredited, and monitored by SBTi experts, your company can prove its actions are relevant, reliable and address concerns about issues like greenwashing. 
• Boosts your company's reputation: Consumers and other stakeholders are increasingly recognising the effects and ethics of their consumption and business choices. As a result, your company's reputation for sustainability is now of paramount importance to maintain their competitiveness in various markets. SBTi is a reliable, internationally recognised framework under which companies who commit to SBTi targets are accredited and published in the readily available SBTi list. This demonstrates that the committed company has good environment awareness and corporate responsibility, which boosts their business reputation. 
• Increases investor confidence: Investors are increasingly taking interest your company's sustainability efforts and environmental policies. They use commitments to SBTi as benchmarks of your business credibility and prerequisites to investing, which can significantly influence future business opportunities. 
• Supply chain engagement: Committing to SBTi inevitably means your company also commits to engaging with stakeholders, up and down your value chain, who significantly contribute to your scope 3 emissions. This encourages you to build stronger, more transparent value-chain relationships and inspires positive conversations about how you and stakeholders can work to address environmental issues together. In turn, these strengthened relationships can reduce value chain risks and can even generate additional business opportunities which may not have been available without committing to SBTi. 
• Drives innovation: Establishing and achieving SBTi emission reduction targets requires creativity to make effective change. Consequently, committing to SBTi can provoke your company to create innovative solutions, including more effective novel ideas and business tactics, that may not have been generated otherwise.  
• Cost savings: Tailoring your business models to reduce emissions under SBTi typically encourages increases in efficiency and reduced material and energy use, which ultimately reduces business costs. This is prevalent as resources and energy are becoming scarcer and more expensive, so additionally helps your company to build resilience for the future. 
• Increases your company's resilience against regulation: National governments are progressively working to set ambitious countrywide targets that align with international agreements. In the UK, the government has already started introducing strict regulations (e.g. PPN 06/21) to curb emissions nationally in line with the Paris agreement target to limit warming to 1.5°C above pre-industrial levels, and UK targets to achieve Net Zero by 2050. Companies of all types are responsible for contributing to national emissions. Therefore, your company can expect to see more and more regulations introduced by the government to curb emissions. Implementing SBTi science-based and net-zero targets now helps you to future-proofing your business models and align yourself with national and international goals. 
• Leadership and increased competitive edge: With increased innovation, efficiency, resilience, and strengthened consumer and investor confidence following SBTi commitments, your company can take the lead in, and have a strong competitive edge to succeed in, the low carbon economy. 

Who is already committing to SBTi? 

Over five and a half thousand companies worldwide have already committed to taking action to reduce their emissions under SBTi. Around one thousand of these are directly based in the UK, and most others operate in UK markets. Amongst the most well-known corporations are Unilever, Tesco and BT.  

At Tomson Consulting, we have been working with Albert Bartlett, the UK's leading potato supplier, to support them in quantifying their Scope 1, 2, 3 and FLAG emissions and establish carbon management plans that meet SBTi standards. Keep an eye out for more information about this project, coming to our website soon.