The Science Based Targets initiative (SBTi) program has become a crucial framework for aligning corporate climate strategies with global climate goals. The latest Environmental Paper Assessment Tool (EPAT) release now allows companies in the pulp, paper, and packaging industries to report their commitment to SBTi, fostering increased transparency and accountability related to climate change.
What are Science-Based Targets?
Science-based targets (SBTs) provide businesses with a clearly defined pathway to reduce greenhouse gas (GHG) emissions in line with the goals of the Paris Agreement. These targets aim to limit global warming to 1.5°C above pre-industrial levels, helping to prevent the worst impacts of climate change while supporting sustainable business growth.
The SBTi, a collaboration between leading organizations such as CDP (Carbon Disclosure Project), the United Nations Global Compact, the World Resources Institute (WRI), and the World Wide Fund for Nature (WWF), has validated SBTs for over 4,000 companies globally as of the end of 2024. This growing movement underscores the private sector’s critical role in driving down emissions and building a resilient, zero-carbon economy.
Setting science-based targets is based on the latest climate science - ensuring that companies are making meaningful contributions to limiting global warming. By following the SBTi framework (dubbed the Corporate Net Zero Standard), businesses can develop clear, actionable plans to reduce their emissions in a way that’s both realistic and ambitious. The Corporate Net Zero Standard also serves as a practical framework for improving operational efficiency and strengthening reputation.
As more companies join this movement, their collective efforts can significantly speed up the transition to a lower-carbon economy.
While both SBTi and net zero contribute to the fight against climate change, they focus on various aspects of emissions reduction. The SBTi provides a framework for companies to cut their greenhouse gas emissions in line with climate science, ensuring reductions happen at the source. Net zero, on the other hand, is the broader goal of balancing emissions produced (to as close to zero as possible) with those removed from the atmosphere, often incorporating carbon removal strategies alongside emissions reductions.
You can read all of the SBTi Corporate Near-Term Criteria (updated in 2024) here.
The Benefits of the Science-Based Targets Initiative
Companies that commit to the SBTi enjoy future-proof growth by preparing their organizations for stricter regulations and shifting market demands. It can also lead to cost savings through reduced energy use and optimized operations, while also boosting investor confidence by demonstrating accountability and long-term resilience. Additionally, tracking via SBTs fosters consumer trust by aligning with the values of environmentally conscious customers.
Notably, companies that have adopted SBTs have collectively reduced their Scope 1 and 2 greenhouse gas emissions by 25% between 2015 and 2021, even as global emissions rose by over 3.4% during the same period.
A company with good SBTi standing is one that is reducing emissions ahead of the rate necessary to attain the goals set by the Paris Agreement.
Process for Getting Involved with the SBTi?
Companies looking to align their climate strategies with the SBTi can follow these key steps:
Companies of all sizes, from SMEs to multinational corporations, can participate, with tailored pathways available based on business type and sector. Major industry players and EPAT members such as Sappi, UPM, Domtar, and Billerud have already committed to SBTi, demonstrating leadership in climate action. Their participation sets a precedent for others in the pulp, paper, and paper-based packaging sectors to follow suit.
SAPPI included a declaration that by 2026, 44% of their suppliers (by spend) must have implemented their own SBTs. They also committed to reducing carbon emissions by 41.5% per ton of product by 2030.
Billerud committed to reducing Scope 1 and Scope 2 emissions by 42% by 2030 (using 2022 as the baseline year).
In 2022, SBTi validated Resolute’s new Scope 3 emission reduction target, which was a 16.5% reduction over 2015 levels by 2026. This builds upon their SBTi validated reduction target of 41.5% for scope 1 and 2 emissions.
However, it is not enough to just commit to the SBTi and use that commitment for “sustainability public relations”. In 2024, the SBTi removed over 200 high profile companies from their framework, after these companies failed to meet deadlines for submitting validated climate targets. These companies include Microsoft, X (formerly Twitter), Diageo, Unilever, and Procter & Gamble.
For companies setting targets for the first time, the most recent year’s data should be used as the baseline. However, if comprehensive data from an earlier year is available, it can still be valid for review, if the latest figures are included.
When setting targets under SBTi, companies must follow key guidelines:
The addition of SBTi indicators into EPAT 4.1 reflects the growing urgency to address corporate climate transparency and the critical role that the private sector plays in driving meaningful action. By leveraging this new indicator, businesses in the pulp, paper, and packaging industries can further lead the way in reducing emissions and supporting global climate goals.
TAPPI
http://www.tappi.org/