The Role of ESG Data for Science Based Targets

What Are Science Based Targets (SBTs)?

The Science Based Targets initiative (SBTi) is a globally recognized framework that helps businesses align their carbon reduction strategies with climate science. According to a United Nations report, global net CO2 emissions must drop by 45% from 2010 levels by 2030 to avoid the worst effects of climate change. SBTi-approved targets ensure companies contribute their fair share to this critical reduction, setting measurable goals that align with limiting global warming to 1.5°C or well below 2°C as outlined in the Paris Agreement.

“Science-based target setting makes business sense: it future-proofs growth, saves money, provides resilience against regulation, boosts investor confidence, spurs innovation and competitiveness, while also demonstrating concrete sustainability commitments to increasingly-conscious consumers.”

Science Based Targets initiative (SBTi), 2024

Who Reports Science Based Targets?

Over 5,000 companies across various industries, including finance, manufacturing, and technology, have committed to SBTi. This includes large corporations, SMEs, and financial institutions, all of which use science-based targets to address investor demands, comply with regulations, and respond to consumer expectations for transparency.

Regulators and investors particularly rely on SBTi to gauge climate risks within portfolios. Companies that report to SBTi demonstrate leadership in sustainability, providing measurable, science-backed data to hold themselves accountable. For banks, SBTi data is becoming essential for meeting EBA ESG risk management requirements and building credible transition plans.

Why Do Companies Report to SBTi?

Adopting science-based targets offers multiple benefits beyond regulatory compliance:

• Future-proof Growth: Businesses aligned with climate goals are better positioned to handle stricter regulations.
• Investor Confidence: Transparent, measurable goals build trust among stakeholders.
• Customer Loyalty: Conscious consumers prefer companies with actionable climate commitments.
• Operational Efficiencies: Tracking emissions data often uncovers inefficiencies, leading to innovation and cost savings.

“Energy efficiency represents more than 40% of the emissions abatement needed by 2040.” (IEA, 2021)

With Scope 3 emissions often the largest contributor, businesses must embrace comprehensive data collection to track emissions across the value chain. The GHG Protocol provides the foundational methodology for categorizing and measuring these emissions, and accurate Scope 3 data is increasingly demanded by frameworks like SFDR and CSRD.

How We Can Help Companies Who Report to SBTi

Provide us with a list of your supply chain, and we can automatically fetch all their disclosed ESG data. By leveraging our AI-powered data extraction platform, we ensure seamless data collection across your value chain, covering emissions from purchased goods, transportation, waste management, and more. See how we compare to traditional ESG data providers.

Did You Know?

We’ve integrated the full SBTi dataset, enabling us to offer all available SBTi data on every company with established science-based targets. This means you can access comprehensive, up-to-date information on corporate commitments, progress, and emissions reduction strategies directly through our platform, streamlining your reporting and benchmarking efforts.