Corporate Climate Targets to Align with 1.5C Goal Despite Growing Skepticism

The Science Based Targets initiative, the main standard setter for corporate climate targets, will not validate net-zero claims by companies that abandon the 1.5C warming goal. The goal remains crucial for demonstrating business alignment with a 1.5C trajectory for climate verification. Despite companies abandoning the goal, SBTi will continue to hold on to it, making adjustments for companies based on size and location. Recent research shows that none of the companies with SBTi targets are on a 1.5C pathway, with many on a pathway for 2C-2.5C warming.

The Science Based Targets Initiative (SBTi) has recently announced that it will not validate net-zero claims by companies that abandon the 1.5°C warming goal [1]. This decision comes as a response to the latest scientific findings, which indicate that none of the companies with SBTi targets are currently on a 1.5°C pathway [1]. Instead, many are on a pathway for 2°C-2.5°C warming.

The SBTi's commitment to the 1.5°C goal is crucial for demonstrating business alignment with a 1.5°C trajectory for climate verification [1]. Although some companies may choose to abandon this goal, the SBTi will continue to hold on to it, making adjustments based on size and location [1].

The SBTi's decision to maintain the 1.5°C goal is in line with its commitment to scientific integrity and best practice [1]. The initiative is currently undergoing a review of its Corporate Net-Zero Standard to ensure that it continues to align with the latest scientific thinking and addresses challenges related to scope 3 target setting [1].

Scope 3 emissions, which account for 75% of a typical company's footprint, pose significant challenges when it comes to corporate decarbonization [1]. The SBTi is exploring options to develop a more effective approach to addressing scope 3 emissions and enhance the impact of its Corporate Net-Zero Standard [1].

Recent research has shown that the use of Environmental Attribute Certificates (EACs) can be an effective tool in helping companies reduce their carbon footprint and achieve their climate targets [2]. However, the effectiveness of EACs in corporate climate targets is still a subject of debate [2]. The SBTi has released a report presenting its synthesis of the evidence submitted on the effectiveness of carbon credits in corporate climate targets [1]. This is the first of three distinct reports that will be published as part of the review of the Corporate Net-Zero Standard [1].

In conclusion, the Science Based Targets Initiative's decision to maintain the 1.5°C warming goal, despite some companies' abandonment of it, is a testament to its commitment to scientific integrity and best practice. The initiative is currently undergoing a review of its Corporate Net-Zero Standard to ensure that it continues to address the challenges of scope 3 emissions and align with the latest scientific thinking.

References:

[1] Science Based Targets Initiative. (2023, November 21). SBTi releases technical publications in an early step in the corporate net-zero standard review. Retrieved November 22, 2023, from https://sciencebasedtargets.org/news/sbti-releases-technical-publications-in-an-early-step-in-the-corporate-net-zero-standard-review

[2] Wara, M. (2023, October 13). The role of carbon offsets in net-zero climate targets. Nature Climate Change. Retrieved November 22, 2023, from https://www.nature.com/articles/s41558-023-01449-z