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In 2022, the SBTi continued to develop and evolve in support of the global growth in science-based targets across regions and sectors. It scaled up in terms of its staff, size, capabilities and ambition.
Partnerships for success
Collaboration lies at the core of the SBTi’s way of working. In January, we announced a new partnership with the Carbon Risk Real Estate Monitor initiative to align their existing methodologies to 1.50C pathways for operational real estate emissions. Later in the year we also began a technical collaboration with Mission Possible Partnership to improve guidance to support companies in sectors including aluminum, chemicals, aviation, and trucking through the target setting process.
SBTi appoints its first CEO
In February, we appointed Luiz Fernando do Amaral as our first chief executive, with a remit to increase the SBTi’s institutional robustness and governance, and ensure it was in a strong position to scale up to meet the increasing demand for science-based targets. Luiz has since overseen significant growth in the SBTi team and the creation of an expanded executive leadership team.
Development of financial institution net-zero standard begins
In the same month, we launched a public consultation on the development of the first Net-Zero Standard for the financial sector, which attracted over 250 responses. The subsequent Foundations Paper on Net-Zero for Financial Institutions, published in April, addressed key issues for financial institutions regarding the development of net-zero targets; specifically, a standard definition for net-zero, the use of offsets and carbon credits and fossil fuel phase-out approaches. In the second half of the year we established an Expert Advisory Group to guide development of the Standard, with work continuing in 2023.
SBTi announces intention to incorporate
In June, we publicly announced plans to become a formal institution, linked to but separate from its founding partners CDP, World Resources Institute (WRI), World Wide Fund for Nature (WWF) and the United Nations Global Compact, and its collaborator the We Mean Business Coalition.
Recruitment of new technical council begins
In September we opened applications for members of our new independent Technical Council. Council members were announced in March 2023, and took up their posts on July 1 2023.
Review of scope 3 target-setting guidance secures input from over 200 organizations
Also in September, we launched a global cross-sector survey to better understand the barriers and limitations companies face when baselining, setting and delivering scope 3 science-based targets. The survey informed a review of our scope 3 guidance, with an aim of ensuring a target-setting framework that catalyzes value chain decarbonization in line with 1.5°C pathways in a robust, actionable and transparent way. The review would continue into 2023.
New guidance for the cement sector
Our work to support the decarbonization of high-emitting industries forged ahead in 2022. In September, we launched the Cement Science Based Target Setting Guidance. This enabled companies in the cement and concrete industry to set near-and long-term science-based targets in line with 1.5°C for the first time.
Public consultation on steel guidance
September also saw the launch of a public consultation to inform the development of similar guidance for the steel sector, with development continuing into 2023.
Oil and gas interim report
Our work to develop sector-specific methodologies for oil and gas companies to set science-based targets continued, with the September publication of the the Oil and Gas Project Interim Report with Mott MacDonald. This summarized input received from the SBTi’s specially-convened expert advisory group, and set out next steps for the development of our Oil and Gas sector methods and guidance. Work on this critical guidance is continuing in 2023.
World’s first land-based emissions guidance is launched
At the end of September we published our Forest, Land and Agriculture (FLAG) Science Based Target Setting Guidance. FLAG emissions represent almost a quarter of total GHG emissions, making the sector the second-largest emitter worldwide. The new guidance provided the world’s first standard method for companies in land-intensive sectors to set science-based targets that include land-based emissions reductions and removals, unlocking the vast decarbonization potential of these sectors.
SBTi increases commitment compliance transparency
At the start of November, we announced that we would be taking a more stringent approach if companies did not fulfill their commitments to submit science-based targets. Among a range of measures the policy, which would come into force in January 2023, would ensure that companies which did not submit targets within the stipulated time – usually 24 months – would be labeled on the SBTi website as ‘Commitment removed’. In this way, it aimed to deter companies from making commitments that they would be unable to fulfill.
World-first roadmap for net-zero shipping by 2040
The SBTi rounded out the year with publication of our Science Based Target Setting Guidance for the Maritime Transport Sector. The guidance enables maritime transport companies to set near-and long-term science-based emissions reductions targets in line with 1.5°C. With more than 80% of global trade by volume carried by sea, the world’s first guidance would fill a considerable gap in the transportation sector’s ability to decarbonize. By using this guidance, maritime transport businesses can set and implement credible climate targets with the ambition needed to keep in line with the Paris Agreement.