Finance sector: New guidance on science-based targets and TCFD reporting
Why take action?
Through the 2015 Paris Agreement, world governments committed to curbing global temperature rise to well-below 2°C above pre-industrial levels and pursuing efforts to limit warming to 1.5°C. In 2018, the Intergovernmental Panel on Climate Change warned that global warming must not exceed 1.5°C to avoid the catastrophic impacts of climate change.
To achieve this, GHG emissions must halve by 2030 – and drop to net-zero by 2050. We have limited time for action and the private sector has a crucial role to play – every sector in every market must transform. Organizations with science-based targets are already cutting emissions at scale; all businesses must now join them.
Join the companies taking action
We need a race to the top, led by pioneering companies and financial institutions. This will empower peers, suppliers and customers to follow suit and drive governments to take bolder action.
The change has already begun and action is gaining pace. Over a thousand organizations worldwide are leading the zero-carbon transformation by setting emissions reduction targets grounded in climate science through the Science Based Targets initiative (SBTi).
The SBTi defines and promotes best practice in science-based target setting. Offering a range of target-setting resources and guidance, the SBTi independently assesses and approves companies’ targets in line with its strict criteria.
Companies report that adopting a science-based target:
- Boosts profitability
- Improves investor confidence
- Drives innovation
- Reduces regulatory uncertainty
- Strengthens brand reputation
Companies committed to the Science Based Targets initiative are demonstrating that creating a climate-secure world goes hand-in-hand with successful business operations.
Setting science-based targets supports an ambitious decarbonization roadmap, clarifying the alignment with the Paris Agreement, and promotes a global net-zero energy system Ernesto Ciorra Enel Chief Innovability® Officer