In the previous video, Kornelis Blok presented many options that companies have to reduce their greenhouse gas emissions. In this video, he will discuss an approach that is called science-based target setting, which assists companies to set and comply with quantitative targets.

Key takeaways

• The idea behind SBTi is that targets for companies should be in line with what the science tells us about the rate at which greenhouse gas emissions should be reduced.
• Two types of target setting are preferred by the SBTi organisation. The first one is the absolute contraction approach – a linear reduction of emissions at a fixed rate derived from decarbonisation scenarios that align with the Paris agreement’s targets. It is equivalent to reaching zero greenhouse gas emissions within 25 years. The second is the so-called sectoral decarbonisation approach or SDA. This one takes into account the starting point of each individual company and emission reduction characteristics that are specific to the sector.
• Not all companies have the same starting points. Some may have higher emissions in the initial year, and others have lower emissions. It would be tough for companies with high emissions to move immediately to the average target line. And companies with low emissions could delay action for over a decade. Therefore, a convergence approach is chosen where every company can follow its own pathway, but in all cases, it should lead to a common convergence level in the year 2050.
• The Science Based Targets initiative can be considered one of the more promising approaches in encouraging companies to take climate action.