Sustainability Consulting

In 2021, the Science Based Targets initiative (SBTi) experienced unprecedented growth, with the number of companies setting and committing to science-based targets doubling to 2,253. This surge included 1,171 companies that committed to set targets and 1,082 with approved targets, representing over a third (35%) of global market capitalization, equivalent to $38 trillion. The rapid increase in commitments and target approvals was three times faster than in 2020, with over 1,300 companies setting targets at a rate exceeding 110 per month. The validation of these targets also accelerated, more than doubling from an average of 20 per month in 2020 to 49 in 2021, indicating enhanced technical capacity and resources within the initiative.

A significant factor contributing to this growth was the introduction of a streamlined route for small and medium enterprises (SMEs) to validate their targets, which allowed 177 SMEs to set targets in 2021, a substantial increase from just 29 in 2020. By the end of 2021, 209 SMEs had approved targets, demonstrating the effectiveness of the SBTi's approach in engaging smaller businesses in climate action.

The SBTi's alignment with the 1.5ºC climate goal became increasingly evident, with 68% of companies with approved targets aligning with this trajectory, up from 41% in 2020. On average, SBTi-approved companies achieved an ambitious annual reduction of 8.8% in scope 1 and 2 emissions, surpassing the required 4.2% reduction for 1.5ºC alignment. The initiative's Business Ambition for 1.5°C campaign played a crucial role in mainstreaming this alignment, with 1,131 companies participating by the end of 2021, over 60% of which committed to setting net-zero targets.

Moreover, the SBTi launched the Net-Zero Standard in 2021, the first framework to provide a science-based understanding of net-zero, which was adopted by seven companies through a pilot program. By December 2021, 727 companies had committed to setting net-zero targets, reflecting a growing demand for structured climate action frameworks.

Despite the significant progress, the SBTi recognized the need for increased engagement in high-emitting sectors and emerging economies, as uptake varied across regions. The initiative's strategy for 2021-2025 aims to accelerate the adoption of 1.5ºC-aligned targets, particularly among G20 countries, which currently lead in approved targets but still require broader participation from companies in developing nations. Overall, the SBTi's efforts have resulted in a ten-fold increase in scope 1 and 2 emissions coverage since its inception, with total committed annual emissions reductions across all approved targets amounting to 53 million tonnes of CO2e, equivalent to removing 11 million cars from the road each year.