How Science-Based Targets Drive Climate Action

In the fight against climate change, terms like "net zero" and "carbon-neutral" are frequently spotlighted in corporate reports and policy agendas. These buzzwords signal promises of a greener future, but what do they truly mean in practice? More importantly, how can we ensure these commitments translate into real, measurable progress rather than remaining empty slogans? Enter Science-Based Targets (SBTs)—a rigorous, science-driven framework that empowers not only companies but also governments to align their climate goals with the latest climate science.

SBTs are not limited to corporate use; they are equally critical for guiding governmental policies. For business leaders, SBTs provide a roadmap to reduce emissions while staying competitive and compliant with evolving regulations. For policy makers, they offer a foundation to design climate strategies that meet national and global goals. For consumers and civil society, SBTs serve as a tool to hold organizations and governments accountable, ensuring climate actions are both transparent and impactful.

This article will explore what SBTs are, why they matter, and how they can drive meaningful climate action through real-world cases and practical insights to inspire your sustainability journey.

What Are Science-Based Targets (SBTs)?

At their core, SBTs are specific, measurable goals set to reduce greenhouse gas (GHG) emissions in line with the Paris Agreement. This global accord aims to limit global warming to well below 2°C and preferably to 1.5°C above pre-industrial levels. While SBTs are widely adopted by companies, they also provide valuable frameworks for governments and policymakers to align their climate strategies with scientific benchmarks.

What makes SBTs stand out among climate pledges? The answer lies in their foundation of rigorous climate data and methodologies. For instance, the Sectoral Decarbonization Approach (SDA), developed by the Science Based Targets initiative (SBTi), is one such methodology. It allows organizations to set targets based on emissions reduction pathways tailored to their specific industry sectors, ensuring a practical and scalable approach.

SBTs also emphasize a holistic view of emissions by covering all categories:

• Scope 1: Direct emissions from owned or controlled operations (e.g., fuel combustion in a company’s fleet or government vehicles).
• Scope 2: Indirect emissions from purchased electricity, steam, or cooling (e.g., energy used in office buildings or public facilities).
• Scope 3: Indirect emissions across the value chain (e.g., supply chain emissions for companies or emissions linked to public services and infrastructure for governments).

This comprehensive approach ensures no emission source is overlooked, whether the target is set by a global corporation or a national government. By incorporating these detailed scopes and rigorous methodologies, SBTs ensure that climate goals are both scientifically sound and practically achievable.

A notable real-world example is IKEA, which has set an SBT to reduce absolute GHG emissions by 15% across its value chain by 2030, using 2016 as the baseline year. This target aligns with the pathways outlined by the SBTi, which offers sector-specific guidance for retail, manufacturing, and energy-intensive industries. For the retail sector, the SBTi focuses on emissions reductions across direct operations and value chains, emphasizing Scope 3 emissions, which are often significant in this sector. IKEA leverages this framework to transition its operations to renewable energy, improve energy efficiency, and collaborate with suppliers to adopt sustainable practices. By aligning its strategy with science-based methodologies, IKEA demonstrates how businesses in the retail sector can achieve tangible emissions reductions while continuing to grow responsibly.

Why Science-Based Targets (SBTs) are Critical for Climate Action?

Here are the key features that make SBTs a benchmark for climate action, benefiting not just businesses but also governments, policymakers, and society at large:

1. Science-Driven: Unlike vague climate goals, SBTs are built on robust models from leading climate scientists. For example, the Intergovernmental Panel on Climate Change (IPCC) provides global emissions pathways, such as those outlined in its Sixth Assessment Report, which help define the reduction trajectories needed to limit warming to 1.5°C. These scientific foundations ensure that targets are both credible and actionable, guiding businesses and governments alike.
2. Transparent and Measurable: SBTs require organizations to set clear, measurable targets and report progress regularly. This transparency builds trust among stakeholders, including investors, employees, citizens, and international organizations monitoring global climate efforts. By publishing progress reports, both companies and governments demonstrate accountability and credibility.
3. Holistic Value Chain Impact: By addressing Scope 3 emissions, SBTs emphasize a systems approach to reducing emissions. For businesses, this involves collaborating with suppliers and engaging consumers to lower emissions across the value chain. Governments can apply a similar approach by tackling emissions from public services, infrastructure, and regional partnerships, ensuring comprehensive climate action.
4. Broader Benefits Beyond the Environment: Adopting SBTs drives tangible benefits. Businesses can improve risk management, adapt to shifting regulations, and gain a competitive edge in sustainable markets. For governments, SBTs provide a strategic framework to meet international commitments, attract sustainable investments, and improve the well-being of their populations.

For example, Microsoft’s commitment to becoming carbon-negative by 2030 exemplifies the transformative potential of SBTs in driving meaningful climate action. Aligned with pathways defined by the IPCC and validated through the SBTi, Microsoft’s strategy is science-driven, ensuring its emissions reduction goals are credible and actionable. The company has set clear, measurable targets and regularly reports its progress, fostering transparency and accountability with stakeholders.

In line with the holistic approach emphasized by SBTs, Microsoft addresses emissions across its entire value chain, including Scope 3 emissions, by collaborating with suppliers and encouraging them to adopt sustainable practices. Its broader initiatives include transitioning to 100% renewable energy, investing in carbon removal technologies, and optimizing operations.

How to get started in setting Science-Based Targets (SBTs)?

Adopting SBTs begins with a clear, actionable plan. These steps will guide you toward aligning with global climate goals.

1. Assess Your Baseline: Begin by understanding your current GHG emissions. Establishing a baseline is critical for identifying where you stand and what areas require the most attention. Tools like the GHG Protocol calculators can help you measure emissions comprehensively. Ensure your analysis includes emissions from direct operations (Scope 1), purchased energy (Scope 2), and the broader value chain (Scope 3).
2. Set Ambitious Targets: Use validated methodologies to ensure your targets are science-based. The SBTi, for instance, offers sector-specific guidance, such as reduction pathways for industries like manufacturing or transportation. Governments can leverage frameworks like the IPCC’s emissions pathways, which provide robust guidelines for aligning national goals with the Paris Agreement.
3. Validate Your Targets: For organizations, submitting targets for external validation like the SBTi enhances credibility by ensuring they meet rigorous standards. Independent validation demonstrates a commitment to transparency and builds trust among stakeholders, from investors to the public. Governments can similarly align their targets with international standards to foster collaboration and accountability.
4. Implement and Monitor Progress: Once targets are set, action is essential. This includes upgrading infrastructure, optimizing supply chains, or transitioning to renewable energy. Regular monitoring and reporting keep efforts on track. Digital tools, such as GHG Protocol platforms or custom dashboards, can simplify progress tracking and help adjust strategies over time.

How to Overcome Challenges with Setting Science-Based Targets (SBTs)?

Adopting and implementing SBTs comes with several challenges. Collecting accurate data, particularly for Scope 3 emissions, often proves difficult due to the complexity of supply chains and indirect sources. Tools like GHG Protocol calculators and sector-specific guidance from the SBTi can help streamline this process, while governments can collaborate with industries to standardize reporting practices.

Collaboration across stakeholders is another common hurdle. Misaligned priorities between businesses and their supply chains or governments and regional partners can slow progress. Establishing clear communication frameworks and shared accountability mechanisms can ensure alignment and commitment to climate goals.

Financial and operational barriers also arise, as transitioning to low-carbon technologies often involves significant upfront costs. Public-private partnerships, green bonds, and government incentives like subsidies or tax credits can ease these financial pressures.

Sustaining momentum is perhaps the most significant challenge, especially amid shifting economic or political climates. Regular progress reviews, transparent reporting, and celebrating successes through public campaigns can reinforce long-term commitment and highlight the tangible benefits of SBTs.

Navigating the Path: Ms. Coral’s Journey to Climate Action

Meet Ms. Coral, the owner of a small, sustainable clothing brand. Like many entrepreneurs, Ms. Coral encountered significant challenges when implementing SBTs, particularly in collecting data for her supply chain emissions. Using the GHG Protocol’s Scope 3 tools, she was able to identify emission hotspots and collaborated closely with her suppliers to align their practices with her climate goals.

Her second challenge was financial. Transitioning to low-carbon materials required substantial upfront investments that strained her budget. To overcome this, Ms. Coral secured funding through green business grants and partnered with local initiatives focused on sustainable manufacturing. These resources not only eased the financial burden but also connected her with like-minded organizations that supported her mission.

Finally, maintaining momentum proved critical. Ms. Coral kept her team and customers engaged by transparently sharing her progress, from achieving milestones to overcoming setbacks. This openness built trust and inspired loyalty among her stakeholders, reinforcing the value of her efforts.

Ms. Coral’s journey highlights that while implementing SBTs may involve challenges, these obstacles can be strategically addressed through the use of reliable tools, innovative funding solutions, and strong collaboration. Her story underscores that small businesses, like larger organizations, can meaningfully contribute to climate action by adopting science-based approaches.

Charting the Path to a Sustainable Future

SBTs are more than just a framework—they are a commitment to creating a sustainable, resilient future for businesses, governments, and society. By integrating credible science, promoting transparency, and addressing emissions holistically, SBTs empower organizations to transform climate ambitions into measurable impact. From multinational corporations like Microsoft to small businesses like Ms. Coral's, the journey may have its challenges, but the rewards are far-reaching, benefiting not only the environment but also stakeholders and future generations.

Take Climate Action to the Next Level

Start your journey with data-driven insights. Explore Tracenable’s Climate Targets Dataset, covering corporate climate targets from over 5,000 companies worldwide. With unparalleled detail on both absolute and intensity-based targets, our standardized data equips you to align with global climate goals confidently. Download the sample data today and take the first step toward making your climate commitments impactful and measurable.