SBTi removes more than 200 companies’ short-term or net zero climate commitments

Launched back in 2019, the SBTi (Science Based Targets initiative) led 'Business Ambition for 1.5C campaign' has released its final report, with the news that almost 240 companies taking part have had their commitments removed.

The campaign, which ran between June 2019 and October 2021, asked for businesses to commit to science-based climate targets which were in line with the 1.5 warming trajectory. Companies who took part had 24 months to fulfill these criteria, with those pledging long-term net zero commitments given an additional extension to 31st January 2024 to meet the SBTi Corporate Net-Zero Standard.

Of the 1,045 companies who joined the campaign, 971 were included in the final report. Of this figure, almost a third (29%) or 284 businesses had commitments removed. From the 284 figure 235 companies had pledged to set goals to achieve net zero by 2050, with the remainder having committed to submit near-term targets spanning the next five to 10 years[i].

Companies who saw their commitments removed by the SBTi include Microsoft, Eurostar, Asda, Marks & Spencer, X (formerly Twitter), Diageo, Proctor & Gamble, and Unilever. Ahead of the UN COP26 climate summit in 2021, more than 1,000 companies representing $23tn in market capitalisation had already responded to the call to join the Business Ambition for 1.5C campaign. It is worth noting that Microsoft and Unilever were amongst sponsors of the COP26 event[ii].

Encouragingly, circa 60 percent of companies with net zero commitments removed still have near-term emissions targets set under the SBTi. These include Marks and Spencer, Microsoft, Diageo, P&G and Unilever. However, Eurostar, Mercedes Benz Grand Prix, Asda, and X were all among those to have both near-term and net zero targets removed from the SBTi's list.

Scope 3 emissions complexity blamed in-part for failure to meet deadlines

The SBTi’s final report includes survey data relating to companies climate commitments, particularly the challenges faced in meeting deadlines. Of those companies who failed to meet the SBTi’s deadlines a third (32.3%) stated that this was because the Net-Zero Standard had not been published. A quarter (24.2%) raised concerns over their ability to meet the targets, and just over a fifth (21%) said that tackling Scope 3 emissions was currently "too big a challenge"[iii].

In a wider survey which considered all participants, regardless of status, Scope 3 was found to be the biggest barrier in setting net zero targets, with 54% stating scope 3 is too much of a challenge. This was followed by uncertainties about future technologies (53% of respondents), and a lack of certainty that the target can be achieved (35%)[iv].

When asked how the SBTi can better support businesses in setting climate goals in future, addressing critical barriers in updated Net-Zero standards, and better engagement, were the top two choices accounting for a combined 46% of responses. The research also noted criticism from some participants who felt that requirements changed during the campaign. The SBTi acknowledges the introduction of FLAG[v] (Forest, Land and Agriculture) for example-  read more here, which led to a requirement for companies in specific land-intensive sectors or with more than 20% of total emissions from land-use to also set FLAG targets.

References

[i] SBTi-Business-Ambition-final-report.pdf (sciencebasedtargets.org)

[ii] As Coca-Cola gears up to sponsor COP27, how do their green credentials stack up? (zerocarbonacademy.com)

[iii] SBTi-Business-Ambition-final-report.pdf (sciencebasedtargets.org)

[iv] Ibid

[v] New reporting guidance for the food & agriculture sectors: the Science Based Targets initiative (SBTi) announces FLAG, the world’s first standard for land-based emissions (zerocarbonacademy.com)

‍