The Science Based Targets initiative (SBTi) has announced a flurry of major changes to its operations and governance amid pressure for reform of its target-validation processes and surging demand from companies seeking independent approval of corporate climate goals.
The independent climate goals body said the "transformation program" would see it established as an independent charitable entity headquartered in the United Kingdom, backed by a new board of independent trustees and a separation of its target-setting and validation services to guard against conflicts of interest.
Crucially, too, the SBTi said it planned to strengthen and publish its standard-setting procedures to improve transparency, in addition to increasing its capacity to validate corporate climate targets in response to accelerating demand for its services from corporates.
Last year saw an 87 percent year-on-year increase in the number of companies seeking to set climate targets through the SBTi, which said it expected more than 10,000 firms to have set such goals through the organization by 2025, up from just over 1,000 today.
Luiz Amaral, SBTi's CEO, said action was urgently needed to accelerate corporate climate action, but that "this action must be built on trust as businesses require the highest level of credibility for their targets."
"This year we have witnessed the three hottest months ever recorded — we must accelerate on all fronts," he said. "When I joined last year, my key remit was to build out the SBTi's governance, while scaling up the organization in the face of enormous demand."
This year we have witnessed the 3 hottest months ever recorded — we must accelerate on all fronts.
With growing numbers of businesses and organizations announcing net zero emissions goals in recent years, the SBTi — set up by a host of respected organizations including WWF, CDP, and the UN Global Compact — has emerged as the leading independent verifier of corporate emissions standards, with thousands of major firms having since sought SBTi certification.
But as the SBTi has become more widely known worldwide, scrutiny of its procedures and standards has also inevitably stepped up, and the organization has faced widening pockets of criticism from detractors who have called for an overhaul of its target validation process to improve credibility.
Critics had argued there were perceived biases in SBTi's system towards richer nations, overly loose rules around baseline years used by firms for carbon accounting and the authorization of controversial carbon credit use in emissions accounting procedures.
Concerns have also been raised about SBTi's financing model, which depends on corporate philanthropy and payments from the same companies seeking validation of their climate goals, prompting allegations of conflicts of interest within the organization.
In the last year, the SBTi said it had doubled its headcount and halved average waiting times for corporate target validations, in addition to appointing an independent Technical Council to review and approve its standards before formal adoption — a key demand from SBTi's critics.
And today the SBTi said it would be further revamping its organizational structures and bolstering oversight measures, in a move likely aimed at confronting previous criticisms regarding its governance.
An SBTi spokesperson expla
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