Building an ambitious climate strategy with the SBTi initiative

To achieve the objectives set out in the Paris Agreement, greenhouse gas emissions must be halved by 2030 and reduced to net zero by 2050. The SBTi initiative helps businesses contribute to this objective and set ambitious but achievable concrete targets for reducing their own emissions. In March 2024, more than 7,500 companies have already committed to the SBTi initiative, and the resulting annual emission reductions total 76 million tonnes of CO2e.

Regulation is tightening

With the implementation of the EU Corporate Sustainability Reporting Directive (CSRD), numerous companies will be required to disclose pertinent sustainability data, as outlined by the European Sustainability Reporting Standards (ESRS). Combating climate change will be an essential topic for almost all companies subject to the reporting requirement, and they must present their emission reduction targets either as an absolute number (t CO2e) or as a percentage reduction from the reference year. These targets must be planned at least until 2030, and they must be broken down separately for scope 1, 2 and 3 emissions. In addition, companies must indicate whether their targets are in line with the 1.5 °C objective of the Paris Agreement. The SBTi initiative ensures that companies’ emissions are reduced in line with the Paris climate targets while also fulfilling the CSRD reporting requirements.

From emissions calculation to action

In order to set emission reduction targets, companies must calculate the carbon footprint of their business in accordance with the GHG Protocol. According to the SBTi, the emissions calculation must cover at least 95% of scope 1 and 2 emissions, and scope 3 emissions must be identified. Short-term emission reduction targets are set for five to ten years, and long-term targets until 2050. In order to achieve the targets, companies must define clear measures for reducing greenhouse gas emissions.

From a business perspective, it is important to understand the advantages of committing to science-based targets, and what benefits they can bring.By implementing SBTi aligned targets, companies can ensure that their climate actions meet the requirements of the Corporate Sustainability Reporting Directive. The initiative also includes many other aspects that will benefit businesses. By making an effort to reduce emissions and improve energy efficiency, companies may find new ways of doing things, which may lead to new innovations and cost savings. The SBTi also helps companies meet the growing expectations of stakeholders such as customers, investors and employees, for sustainable business practices.

Nordic Offset helps businesses set SBTi goals

Nordic Offset helps companies of all sizes to join the SBTi initiative and move towards a lower-emission business.

We act as the client’s partner, implementing the planning of emission reduction targets and measures in accordance with the SBTI initiative. We focus on clarifying what SBTi-compliant measures mean for the company’s business, and what practical measures can be taken to effectively reduce emissions.

We assist in the carbon footprint calculation, which forms the basis for the targets. Through emission reduction targets aligned with the SBTi, we ensure that the company’s climate actions meet the requirements of the Corporate Sustainability Reporting Directive. Our in-depth understanding of the requirements of the initiative and the prerequisites for joining will ensure that the outcome meets the company’s future needs.

Want to know more about the SBTi initiative or how to commit to it? Get in touch with our experienced specialists to discuss the right solutions for your business.

Read our client story about how Nordic Offset planned science-based climate targets for Cinia.