Mastering Your SBTi Journey: A Comprehensive Guide for Companies
The global push for sustainability has shifted from mere awareness to concrete action. Companies today aren't just asked to measure their environmental impact; they're expected to commit to ambitious, science-based reduction targets. This is where the Science Based Targets initiative (SBTi) comes in, rapidly becoming the gold standard for corporate climate action.
But where do you start? How do you set targets that are both impactful and achievable? And how do you ensure your organization stays on track? At Sustaira, we understand these challenges, and we're here to guide you through every step of your SBTi journey.
Get access to the full webinar | Mastering the SBTi Target-Setting Journey
In this session, we addressed the biggest SBTi pain points and show practical ways to overcome them.
Through practical insights and a live demo, you’ll learn how to transform the complex, frustrating SBTi process into a streamlined, strategic part of your sustainability program.
Why SBTi Matters Now More Than Ever
The global corporate climate dialogue has shifted fundamentally. It's no longer enough for enterprises to simply measure and report their emissions; the focus is now on setting ambitious, verifiable reduction targets.
As Rory O’Sullivan, Sustaira’s Global Sustainability Lead, explains, "In the last few years, we've seen a shift away from simple measurement to:
How do I go about setting a target which is not only realistic but also matches the level of ambition of your organization?"
Companies are facing increasing pressure from multiple fronts:
Investor Demands: Investors are actively seeking companies with clear, SBTi-aligned targets as a marker of future resilience and responsible governance.
Regulatory Imperatives: New non-financial reporting standards increasingly require not just emissions data, but also forward-looking targets and detailed reduction plans.
Industry Norms: Setting robust emissions reduction targets is quickly becoming standard practice, vital for maintaining competitiveness and reputation.
The SBTi provides the essential framework that grounds these targets in climate science, aligning corporate ambitions with the Paris Agreement's goal of limiting global warming to 1.5°C or 2°C. It transforms "loose pledges" into credible, data-driven commitments.
To dive deeper into the latest SBTi developments and what they mean for your business, read our in-depth article: SBTi Target Setting 2.0: What Enterprises Need to Know Now.
Navigating the Landscape of SBTi Targets
Your SBTi journey begins with understanding the different types of targets available:
Near-Term Targets: These are your immediate action plans, typically covering 5-10 years. They focus on direct operational emissions (Scope 1 & 2) and often include indirect value chain emissions (Scope 3) where significant. They require specific data and clear reduction pathways.
Long-Term/Net-Zero Targets: Looking further ahead, usually to 2050, these targets aim for 90-95% absolute emission reductions. While the how might be less defined initially, the ambition for near-total decarbonization is paramount.
Sector-Specific Targets: Recognizing that some industries (e.g., construction, heavy manufacturing) face unique challenges, SBTi offers tailored pathways to ensure targets are ambitious yet feasible within specific operational contexts.
Financial Institutions Targets (FIT): A specialized framework for the financial sector, acknowledging the distinct nature of emissions within investment portfolios compared to direct operational emissions.
Key Challenges and Considerations Before You Commit
Before publicly committing to SBTi, it's essential to address internal foundations. Ignoring these can lead to significant hurdles:
Data Accuracy is King (Your Baseline): Your starting point – your baseline emissions data – must be robust. Are your current measurements "loose approximations" or precise figures? Has your organization undergone significant changes (acquisitions, divestments) since your baseline year, making it irrelevant? A solid, re-evaluated baseline, especially considering factors like the unique operational context of 2020-2021, is non-negotiable.
Balancing Growth with Reduction: Growth often means more activity, which traditionally correlates with higher emissions. How will your organization reconcile ambitious growth forecasts with reduction targets? This often involves exploring intensity metrics (e.g., emissions per unit of product or revenue) that align sustainability with business expansion.
Defining Your Ambition and Pathway: SBTi sets a clear minimum: a 42% reduction in Scope 1 and 2 emissions by 2030. But merely knowing the target isn't enough; you need a credible plan for how you'll get there. Be aware of the "disconnect" between short-term incremental fixes (like LED lighting) and the fundamental, systemic changes required for long-term net-zero goals.
Strategies for Success on Your SBTi Journey
Achieving your Science Based Targets (SBTi) requires a clear strategy that moves beyond simple compliance and tackles organizational complexities.
Here is a synthesis of the essential best practices discussed during the Webinar - Mastering the SBTi Target-Setting Journey :
1. Structure and Share the Responsibility
Your targets must align with your organizational boundaries and control. This means:
Decentralize Action: Don't let the overall target sit only with corporate headquarters. "Trickle down" specific, manageable sub-targets and standards to individual subsidiaries and business units.
Acknowledge Local Realities: Recognize that the path to reduction isn't uniform. Factors like the local energy grid mix (access to green electricity) or local landlord control over utility contracts require adapting your approach for fairness and realism across different geographies.
2. Maintain a Dynamic and Accurate Baseline
Your organization is constantly evolving, and your targets must keep pace.
Ensure Baseline Integrity: Before committing, verify your initial baseline year is a true representation of your operations. Recalculate if significant structural changes (acquisitions, divestments) or anomalies (like the COVID-19 years) have occurred.
Future-Proof Data: Plan for regular review of both your baseline and your targets to reflect ongoing organizational changes and evolving data capture processes. Your system must be dynamic, not rigid.
3. Model Initiatives and Engage the Value Chain
Decarbonization success hinges on proactive planning and external collaboration.
Strategic Planning: For near-term targets, don't guess. Proactively identify and model the specific impact of all planned decarbonization levers (e.g., energy efficiency projects, renewable energy adoption) to ensure they will deliver the required reduction before you commit.
Collaborate on Scope 3: Since your Scope 3 emissions are someone else's Scope 1 and 2, actively engage your value chain partners (suppliers, logistics) to understand their targets and reduction plans. This is crucial for collaborative and effective Scope 3 reduction.
See All the Strategies in Action
To get the full depth of these strategies, including a complete demonstration of how the Sustaira platform helps model, track, and manage your SBTi-aligned initiatives, you can access the full recorded webinar.
Gain access to the recorded "Mastering the SBTi Target-Setting Journey" webinar to see all the strategies and platform features demonstrated step-by-step.
Powering Your SBTi Journey with Sustaira
At Sustaira, we provide the integrated solutions you need to not only set ambitious SBTi targets but also to achieve them, stay compliant, and drive real decarbonization.
Our modular, AI-driven platform acts as your end-to-end partner:
Robust Carbon Accounting: The foundation of any SBTi journey is accurate emissions data. Our platform provides a GHG Protocol-compliant calculation engine for Scope 1, 2, and 3 emissions, allowing you to establish and maintain a solid baseline, filtered by specific locations or entities.
Intuitive Target Setting: Once your baseline is established, our tool guides you through creating new targets. You simply select your target type (e.g., Scope 3 near-term), baseline year, and target year, then adjust your reduction percentage until it aligns with SBTi requirements, visualizing your progress with a clear "glide scope."
Dynamic Progress Tracking: Monitor your performance at a glance, understanding if you're on track and where additional effort is needed. This allows for proactive intervention across your multi-tier organizational ecosystem.
Strategic Decarbonization Planning (Sustainability Planner): This powerful tool lets you model the impact of various energy reduction initiatives. Select different projects and instantly see their projected impact on annual cost savings, energy intensity, CO2 reductions, and payback periods. Make smarter, more cost-effective decisions that drive compliance and innovation.
Seamless Integration & Future-Proofing: Sustaira integrates with key data sources like SAP and Snowflake, allowing you to feed planned sales projections and other dynamic data directly into your emissions forecasting. Our AI-powered layer further enhances this by aligning with credit and certification systems like Energy Star.
Ready to Accelerate Your Sustainability Journey?
The path to SBTi alignment doesn't have to be overwhelming. With a clear understanding of the requirements, a strategic approach to challenges, and the right technology partner, your organization can set and achieve ambitious, science-based targets.
Want to see how Sustaira can simplify and accelerate your SBTi journey?
