The Science Based Targets initiative (SBTi) relaxed its rules earlier this week. The group released a “non-substantive revision” that appears to many to be quite substantive. Previously, SBTi-approved companies were obligated to reduce Scope 1 and 2 emissions 42% by 2030. However, as 2030 inches closer, the initiative is revisiting that requirement. Responsible Investor reports:
“On 22 April, SBTi removed the 2030 benchmark date. It has now asked companies to set their own target year for achieving medium-term climate targets, subject to a minimum emissions reduction requirement of 4.2 percent per year. Only companies in the advanced stages of setting near-term climate targets were notified of the changes.”
The move appears to be an effort to accommodate companies that are late to adopt emissions reduction targets. Organizations that obtained SBTi-approved targets in 2020 have a much easier time cutting their emissions by 2030 than companies that started this year. Therefore, allowing companies to set their own intermittent targets means that laggards can still be SBTi approved. While this move is controversial, the SBTi’s logic is clear. A company seeking SBTi approval today would have a very difficult time obtaining it under previous rules. So much so that they may deem the whole effort not worth their time. This would make SBTi-approved targets limited to those who set targets early, and with each year, approval would become more difficult to obtain. The rules still require year-over-year reductions, giving late bloomers time to join the pack.
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