Progress and Ambition in Setting Science-based Targets and Tracking Progress

As businesses prepare to meet the growing demand for transparency in emissions reporting, the Science Based Targets initiative (SBTi) is leading the way in setting global standards for climate target setting. In a recent episode of the EY Sustainability Matters podcast, host Bruno Sarda is joined by Alberto Carrillo Pineda, cofounder and CTO of the SBTi, and the two members of the EY Climate Change and Sustainability Services, Rob Bradley, Managing Director, Ernst & Young LLP, and Miranda Nayyar, Manager, Ernst & Young LLP.

Setting, reporting and delivering on credible climate targets is becoming increasingly important as mandatory climate regulations come into effect. EY teams and the SBTi are collaborating in this area to support clients in committing to and setting science-based targets, and in developing decarbonization pathways to meet these goals. The EY organization and the SBTi recently co-authored research on the landscape of corporate measurement, reporting and verification related to science-based target setting, which is available to read (SBTi-EY-Landscape-Analysis-of-Measurement-and-Reporting-of-Science-Based-Targets.pdf (sciencebasedtargets.org)).

Pineda emphasizes that the SBTi’s focus is on setting the global standard for science-based climate targets to promote accountability and transparency. The speakers address the challenges companies face in climate target setting, particularly in gathering robust data and achieving set targets.

The discussion also explores the impact of emerging climate disclosures, such as the Corporate Sustainability Reporting Directive (CSRD) and the U.S. Securities and Exchange commission (SEC), and how companies can prepare for these. 

Looking to the future, Pineda is optimistic about the actual implementation, and notes that the SBTi standards will continue to evolve.

• The importance of setting climate targets has increased, and with more companies making public disclosures, issues of standardization have arisen.
• The SBTi is evolving standards to provide a globally standardized way to set climate targets and assess decarbonization progress.
• Setting of targets should go hand in hand with a robust decarbonization strategy to deliver on commitments.
• Key challenges are data collection and access to data across the value chain.
• The SBTi is moving toward a formal standard-setting structure and remains dedicated to continuously evolving and revising their standards to ensure alignment with the most up-to-date scientific research and evidence.

© 2023 Ernst & Young LLP