Hi, imagine you have projected a yearly progress on carbon emissions mitigation, and you have taken actions that will definitely result in progress but only after some years, especially after the low hanging fruit was already harvested before. In that case you invest in deep transformation of the value chain but the impact of this is not something with a linear effect. It takes years to implement. How does SBTi deal with that, during the years when you do not reach the yearly targets? Is there a sanction?
If you are high profile you get delisted - see news this week….
In 2024, SBTi removed the commitments of 239 major global companies including Unilever, Walmart, Microsoft & P&G for failing to meet their net zero targets
The Science Based Targets initiative (SBTi), one of the world’s foremost frameworks for corporate decarbonisation, removed more than 200 companies from its list of net zero commitments in 2024.
The decision, announced as part of the final report for the Business Ambition for 1.5°C campaign, spoke to the challenges faced by corporations in meeting stringent climate action requirements set out by international governing bodies, as well as self-imposed interim emissions targets.
Amongst the delisted companies in question are major players such as Microsoft, Unilever, Procter & Gamble and Walmart, many of which were prominent supporters of climate initiatives.
The SBTi’s decision deals reputational blows to each of these companies, tarnishing the sustainability of their brands, though the SBTi has kept the door open for them to resubmit more achievable targets in the future.
Hi Wouter,
SBTi does not provide yearly targets. What counts for target achievement is the reduction you have achieved by the selected target year (near-term or long-term), relative to your base year.
In-between your base year and target year, your emissions may fluctuate, which is absolutely normal. There is no expectation from SBTi that your emission reuction will be strictly linear and you do no need to hit certain yearly targets.
Moreover SBTi is not policing non-conformity with reduction targets, i.e. there can be no sanctions, as it is a voluntary frameworks. What would happen if you do not achieve your target by the committed target year, is that you will be de-listed (i.e. name and shame).