What's Happening?
A recent report from the Science Based Targets initiative (SBTi) highlights the positive impacts of setting and validating science-based targets on businesses. The report, which surveyed over 170 global companies, reveals that 91% of businesses experienced
positive business impacts from their decarbonization targets. These benefits include improved strategic cohesion, stakeholder confidence, and financial performance. Notably, 95% of companies reported an enhanced reputation with stakeholders, and eight in ten businesses noted strengthened investor relations. The report also indicates that 86% of companies have accelerated their decarbonization efforts due to these targets. Furthermore, the initiative is preparing to update its Net-Zero Standard, with new information expected soon.
Why It's Important?
The findings underscore the growing importance of climate action in the corporate world, demonstrating that ambitious environmental goals can drive competitiveness and investor confidence. By adopting science-based targets, companies not only contribute to environmental sustainability but also enhance their market positioning and risk management. This trend reflects a broader shift towards integrating sustainability into core business strategies, which can lead to long-term growth and resilience. The report's insights suggest that companies with science-based targets are better prepared for market demands and can achieve significant cost savings and carbon reductions over time.
What's Next?
The SBTi is set to release an updated Net-Zero Standard, with a second round of public consultation expected soon. This update will likely influence more companies to adopt science-based targets, further embedding sustainability into business practices. As more companies align with these standards, the ripple effect across supply chains could lead to widespread improvements in corporate sustainability practices. The upcoming edie 26 event in March 2026 will provide a platform for ESG practitioners to discuss sustainability reporting and climate target-setting, potentially accelerating the adoption of science-based targets.
