Small Business, Big Climate Impact: What are Science-Based Targets (SBTs)?
Over 4,000 companies have publicly adopted science-based targets as part of a global mission to reduce greenhouse gas emissions. But, what are they? And does your company need them? We’ll break it down for you.
Despite the consensus among 90% of business leaders that sustainability is important, only 60% of companies have actually implemented a sustainability strategy.
When it comes to sustainability and businesses, the conversation and criticism tend to focus on big companies and the world’s top polluters, mostly due to their excessive usage of gasoline, coal, and natural gas. However, small and medium-sized enterprises (SMEs) should not be overlooked in their potential to reduce greenhouse gasses and address climate change. Although individually they might be small, together SMEs account for 90% of businesses worldwide and share a collective power to make a difference in reducing their carbon footprint.
Businesses know that sustainability is important, so why delay action? Part of the problem may lie in not knowing where to start. The Science-Based Targets initiative offers a streamlined solution.
What is the Science-Based Targets Initiative (SBTi)?
One way that businesses can set a timeline for sustainability goals is with the Science-Based Targets initiative, which is a globally recognized and supported partnership between the Carbon Disclosure Project (CDP), the UN Global Compact, the World Resources Institute, and the World Wide Fund for Nature (WWF). The SBTi ensures that businesses are on track for reducing carbon emissions and setting net-zero targets that are scientifically approved, which overall will help limit global warming below 2 degrees Celsius as stated in the Paris Agreement.
To set science-based targets (SBTs), businesses must follow a diligent process that involves assessing current emissions, defining appropriate reduction pathways, and aligning their targets with the SBTi’s criteria for scientific credibility and alignment with global climate goals.
With over 4,100 companies already having the science-based targets initiative stamp of approval, and a goal of 10,000 companies to sign on by 2025, the SBTi is rapidly growing. However, the initiative primarily focuses on science-based targets for larger businesses currently. The SBTi has acknowledged the need for inclusivity for SMEs and has developed specific resources that are tailored for smaller businesses that are more accessible and practical for SME business needs.
Benefits of Setting an SBT as a Small Business
By setting up science-based targets as a small business, you can add to the much-needed participation and representation of SMEs within the SBTi. You can also experience the following benefits for your business while protecting the planet.
Increase Market Relevance and Positive Brand Image
Sustainability has always been important, but it is becoming more urgent as we run out of time to take action. By setting an SBT, you are taking the necessary step forward after recognizing sustainability’s importance in setting a defined strategy and timeline. This sets your SME apart from other businesses that are not taking responsibility for their participation in activities contributing to climate change and increases your relevance in markets where being environmentally responsible is increasingly valued. Developing a strong view on sustainability and developing measurable science-based targets to reduce your carbon footprint can create a positive brand image and foster like-minded employees and customers.
Meet Large Customer Expectations
Sustainability targets are no longer simply nice to have, but now an expectation for many companies. Large enterprise companies, like Salesforce, Microsoft, and Atlassian, are setting ambitious science-based targets to lower their Scope 3 emissions (emissions that are beyond the direct control of the company), so they expect their suppliers to set targets in accordance. One of the best ways to promote supply chain sustainability practices is by establishing long-term sustainability goals. This can create a ripple effect and inspire sustainable targets amongst all levels of the supply chain, leading to stronger, unified business relationships.
Cost Savings and Efficiency Gains
Switching to a net zero business mindset is an investment in your organization and the future of our planet. It can be costly to get started with tracking carbon emissions, but it can help your SME save money over time by minimizing excess waste and optimizing energy usage. As governments continue to focus on climate change regulations, you will be ahead of the curve by staying on top of emissions regulations, which may secure federal funding or grants for your SME or even sustainability-focused investors.
Why It Matters
It is crucial to act now, especially because SMEs are more vulnerable to the effects of climate change. Damage due to extreme weather, droughts, and floods along with the increased risk of illness could shut down supply chains, and destroy vital natural resources, and overall business practices. We are at a defining moment and on the precipice of a climate crisis. If we fail to act decisively to safeguard our businesses and the planet from the impact of climate change, the prospect of a sustainable future becomes increasingly uncertain.
There have been accessibility issues when it comes to setting science-based targets and reducing the carbon footprint of SMEs largely due to high costs and complexity of resources. RyeStrategy breaks down barriers by offering specialized affordable carbon footprinting and reduction services to transform your SME into a net zero business and help you take that first step towards a sustainable business and future.
Learn about our affordable carbon footprint solutions for small and medium-sized businesses
Book a free strategy session to discuss your climate goals with a sustainability manager.
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About RyeStrategy
Based in Seattle, RyeStrategy is a CDP-accredited, mission-oriented company specialized in carbon accounting, mitigation coaching, and climate disclosure solutions for organizations at any point in their sustainability journey. Learn how RyeStrategy helped Salesforce, Ideascale, and Wazoku achieve their sustainability goals.
From exhaustive carbon footprinting and mitigation coaching, to setting science-based targets and reporting climate data to CDP, SBTi or custom reporting platforms, RyeStrategy acts as a hands-on extension of the team, custom-tailoring services to fulfill climate disclosure requirements easily and accurately.
Meet with a sustainability specialist to learn more about RyeStrategy solutions.
