Approaches and methods
There are three science-based target (SBT) setting approaches:
We are currently in the process of updating the economic-based approach and will provide new guidance upon completion.
Companies who wish to use economic-based methods to set intensity targets may do so but note that intensity targets would be considered science-based only if they lead to absolute reductions in line with climate science or are modelled using an approved sector pathway or method approved by the Science Based Targets initiative (e.g. the Sectoral Decarbonization Approach). Reductions must be at a minimum consistent with the low end of the range of emissions scenarios consistent with the 2°C goal,2 or aligned with the relevant sector reduction pathway within the Sectoral Decarbonization Approach.”
For information on how these approaches are applied in the SBTi target validation criteria please see here.
Acceptable ambition for Scope 1 & 2 targets (according to SBTi Criteria and Recommendations V3.0)
The table below summarizes how the ambition of different types of Scope 1 and 2 targets submitted (absolute, activity-based intensity target, economic-based intensity target, and power generators targets) are evaluated by the SBTi technical reviewers. “OK” indicates the circumstances under which targets are considered as acceptable in terms of ambition. This table can be used as a guide for companies to verify whether their target(s) would meet the validation criteria regarding ambition.
Key takeaways are:
Please note that targets have to meet all the SBTi criteria to be approved and this can only be determined after a rigorous assessment performed during the target validation.
When the target being validated is: | The technical reviewer checks against: | ||||||
Absolute Emissions Contraction | SDA | ||||||
Absolute | Absolute, if covered in a heterogeneous or homogeneous sector | Intensity, if covered in a homogeneous sectors | |||||
Absolute target | OK | and/or | OK | and/or | OK | ||
Activity-based intensity target | Look at expected change in absolute emissions | Look at expected change in absolute emissions | |||||
OK | and/or | OK | and/or | OK | |||
Economic-based intensity target → convert values to check against other methods | Look at expected change in absolute emissions | Look at expected change in absolute emissions | |||||
OK | and/or | OK | and/or | OK | |||
Power Generators | N/A | OK | and/or | OK |