Abstract
Companies are increasingly seeking to align their actions with the goals of the Paris Agreement. Over 1000 such companies have committed to the science-based targets initiative which seeks to align corporate carbon reduction targets with global decarbonisation trajectories. These ‘science-based targets’ are developed using a common set of resources and target-setting methodologies, then independently assessed and approved by a technical advisory group. Despite the initiative’s rapid rise to public prominence, it has received little attention to date in the academic literature. This paper discusses development of the initiative based upon a quantitative assessment of progress against each component of the science-based targets set by 81 early adopters, using information gathered from company annual reports, corporate social responsibility websites and Carbon Disclosure Project (CDP) responses. The analysis reveals a mixed picture of progress. Though the majority of targets assessed were on track and, in some cases, had already been achieved, just under half of the companies assessed were falling behind on one or more of their targets. Progress varied significantly by target scope, with more limited progress against targets focused on Scope 3 emissions. Company reporting practices were highly variable and often of poor quality. This paper concludes with a range of recommendations to improve the transparency, consistency and comparability of targets within this key agenda-setting initiative.
Highlights
The 2015 Paris Agreement saw most nations commit to limiting global warming to well below 2 ◦ C above pre-industrial levels by ensuring a balance of greenhouse gas (GHG)
Results are presented against a range of parameters, such as target scope
This review of the progress of early adopters in meeting their SBT has shown that the majority of targets assessed are on track at the current rate of progress, with 21% of targets already achieved and only 23% of companies behind on all targets
Summary
Sources and sinks in the second half of this century [1] This will require rapid reductions in GHG emissions in excess of current international mitigation commitments [2]. In 2019, 8361 companies, representing over 50% of global market capitalisation, disclosed climate change information through CDP, compared with just 220 in 2003 [5], suggesting significant growth in corporate reporting. Much of this increased disclosure has been criticised for “corporate-centric”, “self-laudatory” reporting with “disclosure for the sake of disclosure”, and performance primarily assessed against self-referential indicators that provide an inadequate assessment of true sustainability [6].
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