Emissions reduction targets approved for over 100 companies

The Science Based Targets initiative (SBTi) is celebrating a milestone this week, with over 100 companies worldwide having approved targets in place for reducing carbon emissions.

A corporate version of the Paris Agreement, the SBTi is a collaboration between UNGC (UN Global Compact), CDP (formerly the Carbon Disclosure Project), WWF (World Wide Fund for Nature) and WRI (World Resources Institute). The initiative sees companies provided with a clearly defined pathway to futureproof growth by specifying how much and how quickly they need to reduce their greenhouse gas emissions in order to contribute their part to meeting the Paris goals.

As of this week, emissions reduction targets have been verified for 100 companies. Together these companies make a significant contribution to the global economy, with a combined market cap of US$3.4 trillion and current annual emissions equivalent to 100 coal-fired power plants. Over 250 additional companies have already publicly committed to setting similarly ambitious targets.

Sustainability consultancy Edge Environment is one of only two Australian companies to have a verified target, alongside Origin Energy. Optus is also part of the agreement, as part of Singtel-Optus.

“As sustainability consultants we spend our time working with companies to show them the enormous value that can be created by shifting to a low-carbon business model — but we didn’t believe that could be credible unless we were prepared to ‘walk the talk’ ourselves,” said Edge Environment CEO Jonas Bengtsson.

“There are over 380 companies who have set targets or have publicly committed to doing so, but there are many, many more doing the same work in the background. We’re working with several clients to set unofficial targets using the same methodology and have live conversations with a host of others about following that path.

“The other vital thing to note is that, for most companies, the clear majority of emissions are in their supply chains or during use of their products and services. Setting a science-based target requires them to engage outside their organisational boundaries. As such, the initiative is helping to create incredible momentum, and it provides great confidence that the Paris Agreement’s targets can be delivered.”

A world map of companies with approved science-based targets is available at www.sciencebasedtargets.org/approved-targets-map.

Image credit: ©stock.adobe.com/au/denisismagilov