A record number of companies are committing to and setting science-based climate targets, according to new research by the Science-Based Targets initiative (SBTi), the global body enabling businesses to set emissions reduction targets in line with science. The SBTi today launches its third annual assessment of the initiative’s impact since its launch in 2015. The 2021 Progress Report ‘Scaling Urgent Corporate Climate Action Worldwide’ takes stock of the growth and impact of the initiative, which is now evolving to become a global standard setter. The report highlights exponential growth in approved science-based targets and commitments; to the point of reaching a critical mass; showcases progress to date on delivering against those targets; and explains how the SBTi is responding to key challenges around the adoption of science-based targets by companies worldwide.
Key findings
• At the end of 2021, 2,253 companies across 70 countries and 15 industries, representing more than one third ($38 trillion USD) of global market capitalization, had approved emissions reductions targets or commitments with the SBTi.
• Almost 80% of targets approved in 2021 were aligned with 1.5°C. Between 2015-2020, the majority of companies with 1.5°C targets cut emissions twice as fast as required.
• The world has reached the 20% critical mass of science-based targets adoption among high impact companies.
• Science-based targets are associated with a 12% emissions reduction across scope 1 and 2 emissions in 2020 and a longer term reduction of 29% since 2015. SBTi companies are delivering excess reductions at an accelerated rate compared to their peers.
• The SBTi is calling on companies worldwide to align with its Net-Zero Standard to accelerate immediate corporate emissions reductions in line with 1.5°C – there are now 14 companies with approved net-zero targets and more than 1,000 companies committed.
Lila Karbassi, Chair of the SBTi board and Senior Programme Officer at the United Nations Global Compact, said: “The global economy must halve emissions before 2030 to reach the Paris goal of 1.5°C – and it is currently not on track to do so. This goal is reflected in the most recent IPCC report, which poses a clear message – we must implement rapid and urgent emissions reductions or face planetary catastrophe. The climate action we’re seeing from companies is grounds for optimism, but we must all go further and faster to close the emissions gap.”
