The Science Based Targets initiative ignores the good a company’s products do in avoiding planet-heating emissions – only counting those from its operations
Chris Hocknell is the director of London-based sustainability consultancy Eight Versa.
Tech giant Intel said in its 2023 Climate Transition Action Plan that it faces challenges in setting targets for cutting its greenhouse gas emissions in line with the Science Based Targets Initiative (SBTi). The chip-maker is likely to be the first in a long list of companies to slowly break cover and admit that the SBTi is unfit for purpose.
As a professional sustainability advisor, I know that of the 5,000 or so companies that have signed up for the initiative, only a startling minority have robust and realistic plans for fulfilling their emissions-cutting commitments.
These ambitious yet under-interrogated targets are really just counterproductive “green-wishing”. When it comes to emission reductions, a bird in the hand is worth two in the bush. In other words, the perfect often becomes the enemy of the good.
The SBTi has been endorsed by the United Nations as a global decarbonisation framework. It requires companies to commit to an ‘absolute contraction’ of Scope 1 and 2 emissions of 90%, and for some organisations to make cuts to their Scope 3 emissions as well, by no later than 2050. Absolute contraction is essentially a carbon budget, set from year one.
UN climate chief calls for “quantum leap in climate finance”
We must first consider the implications that SBTi has for climate innovation and a company’s business model. Here we run into a major obstacle because currently, SBTi does not take into account abated emissions – the environmental benefit that technology provides.
Take Tesla. Tesla’s plan to scale production could never be SBTi-aligned But according to the EV maker’s impact report, the company helped to abate 2.3 million metric tons of CO2 in 2022, which is more than the entire CO2 emissions of Malta.
Oxford PV is another example. It has succeeded in developing a breakthrough clean technology that makes solar photovoltaic panels 30% more efficient than average panels. Yet, despite the huge emission abatement potential of this technology, there’s no feasible way the company could scale, while being SBTi-aligned on its own emissions.
This points to a fundamental issue with the current limited and simplistic ‘territorial’ approach to carbon accounting. Instead, we must embrace more comprehensive strategies that can achieve meaningful and lasting reductions in carbon emissions.
Spring Meetings can jump-start financial reform for food and climate
Can SBTi, dreamt up in air-conditioned offices in the West, really tell innovative companies in emerging economies that they must make drastic emission cuts in their operations? For example, it would not be possible for South African clean energy start-up BioTherm Energy, or Nigerian solar company Lumos, to slash their emissions by 90%, all while delivering cleaner energy and pulling in tax revenue for their developing economies. After all, sea walls, flood barriers and drought-resistant crops need to be financed somehow.
The idea that we can
Read More
