Where to Start with Science and Context Based Targets
You have probably heard the buzz as science-based targets (SBTs) and context-based targets (CBTs) have made their way into the world of corporate sustainability. These approaches to goal-setting have gained momentum as companies evolve and strengthen their corporate social responsibility (CSR) or sustainability commitments. Afterall, businesses are doggedly results-oriented when it comes to their financial goals, so why shouldn’t they set CSR goals and targets that use clear data so they can have the best chance of making an impact.
Let’s start with science-based targets. Science-based targets can help companies to set absolute targets that will have a clear impact on a challenge, as opposed to just setting intensity or efficiency targets that may help the company to save resources, but won’t necessarily translate to an improvement in the targeted issue area locally or globally because most companies are on a growth path that will require additional consumption of resources over time. This is called the Jevon’s Paradox.
Currently, the strongest set of science-based targets revolve around globally agreed upon science to reduce greenhouse gas emissions. 575 companies worldwide have committed to taking climate action with the Science-Based Targets Initiative (SBTi) and 231 companies have approved and validated science-based targets. Originally, SBTs were measured against the need to keep global temperature from rising 2 degrees Celsius compared to pre- industrial levels. However, recently the Science-Based Targets Initiative (SBTi) announced that their validation criteria has been updated to align with the IPCC Special Report that changed this to 1.5 degrees Celsius instead of 2 degrees. There are several clear methodologies that companies can use to develop science based targets for greenhouse gases and energy. More information can be found here.
Context-based targets cover other important sustainability issues such as water, biodiversity, and employee health and professional development. These issues and the data backing them are often more localized, or contextualized. For example, setting a context-based water target may involve looking at local watersheds where your company operates and measuring the impact the business has on the availability and replenishment of water in that watershed. Developing CBTs can also be a great way to engage stakeholders in the communities in which your company operates as you work together to address issues that are specific to various locations.
One of our long term clients, Hunter Industries, a privately held manufacturing company based in southern California, recently published its 7th annual corporate responsibility report which contains new CSR targets going out to 2025 and 2030. These ambitious science and context-based goals were developed after nearly two years of research and input gathered from stakeholders which led to the identification of key priority topics for the company. SustainabilityNext assisted Hunter with the stakeholder engagement and materiality activities and conducted research on the global, regional and local context for Hunter’s top 12 issues. We then facilitated discussions among a newly created CSR Council about what targets made sense given the data and information we had available.
Here are a few key lessons from our work with Hunter and other companies on SBTs/CBTs:
Often there is not good science or data available about a priority topic of interest to help us set clear targets that will have impact. However, some data is better than no data. so it’s important to gather what you can to best understand how your company’s CSR activities can influence the issue, or how the local context might affect your company’s success.
In the case of greenhouse gases, where there is clear science and a methodology to create a target, companies often require outside expertise and financial resources to implement the methodology, so budget appropriately..
Even if we know what a target should be based on the best science, it is sometimes difficult to get organizational buy in without a clear road map to achieve an ambitious target.
But, just because the work can be difficult and a bit messy, doesn’t mean it’s not worthwhile. Ambitious, clear goals that will have true impact on an issue provide a competitive advantage to your company as more consumers and customers are looking to engage with companies with meaningful sustainability initiatives. For example, Target recently announced that as part of their own SBT commitments, they are committing that 80 percent of their suppliers will set science-based reduction targets on their Scope 1 and 2 emissions by 2023.
If your company has already established sustainability goals, great! You have a starting place to continue these conversations and take your goal setting to the next level. If you are just beginning to develop your sustainability program, focusing on SBTs/CBTs can help you chart an effective course to achieve impact with your initiatives. We at SustainabilityNext are ready to help your company at any phase to take this next step in your sustainability journey.