The global push towards sustainability has brought Environmental, Social, and Governance (ESG) goals to the forefront of corporate priorities. Companies are no longer judged solely on financial performance; their environmental and social impact plays a crucial role in determining their long-term viability. One of the most effective ways to demonstrate commitment to sustainability is by aligning ESG goals with science-based targets for carbon reduction. 

This blog explores how companies can integrate science-based targets (SBTs) into their ESG strategies, creating a robust framework for achieving meaningful and measurable carbon reductions. From understanding SBTs to aligning them with corporate ESG goals, we will cover actionable insights to help your organisation transition toward a low-carbon future. 

What are Science-Based Targets (SBTs)? 

Science-based targets (SBTs) are greenhouse gas (GHG) reduction goals aligned with the latest climate science. These targets aim to limit global warming to 1.5°C or well below 2°C above pre-industrial levels, as outlined by the Paris Agreement. The Science Based Targets initiative (SBTi) provides guidelines and validation to ensure companies’ carbon reduction plans are credible, science-backed, and actionable. You can explore more about SBTi’s methodologies and goals on their official website. 

For a deeper dive into science-based targets, check out our pillar blog on science-based targets. 

Key Features of SBTs: 

1. Alignment with Climate Science: 

SBTs are designed based on scientific models to ensure global temperature rise remains within 1.5\u00b0C or well below 2\u00b0C as per the Paris Agreement. 

2. Comprehensive Scope Coverage: 

They include Scope 1 (direct emissions), Scope 2 (indirect emissions from energy use), and increasingly Scope 3 (indirect emissions from supply chains and other sources). 

3. Sector-Specific Approaches: 

SBTs are tailored to specific industries, recognising the varying emissions challenges and reduction potentials across sectors. 

4. Validation by the SBTi: 

Targets are reviewed and validated by the Science Based Targets initiative, ensuring they meet stringent criteria for credibility and effectiveness. 

5. Time-Bound Objectives: 

SBTs require setting short-, medium-, and long-term goals, providing a clear timeline for achieving measurable carbon reduction milestones. 

The Plana Earth Academy provides a simplified explanation of how science-based targets function and their importance in corporate sustainability. 

Why Align ESG Goals with Science-Based Targets? 

Aligning ESG goals with SBTs creates a unified approach to sustainability, ensuring consistency between corporate objectives and global climate action. Here are the primary reasons for this alignment: 

1. Enhanced Credibility 

Consumers, investors, and regulators increasingly demand transparency in sustainability initiatives. Incorporating SBTs into ESG strategies demonstrates a genuine commitment to reducing carbon emissions. 

2. Regulatory Compliance 

Governments and international bodies are introducing stringent carbon reduction policies. Aligning ESG goals with SBTs ensures compliance with frameworks like the EU Taxonomy, SECR reporting, and other carbon accounting regulations. Learn more about these frameworks in our blog on SECR reporting requirements. 

3. Risk Mitigation 

Climate change poses physical, regulatory, and reputational risks. Science-based ESG goals help organisations identify and address these risks proactively, safeguarding their operations and reputation. 

4. Investor Confidence 

Investors favour companies with clear, measurable sustainability objectives. SBTs signal to investors that the organisation has a forward-looking strategy for managing climate-related risks. 

For insights on managing climate-related financial disclosures, refer to our guide on organisational boundaries in carbon reporting. 

The blog on Envoria highlights how companies use SBTs to effectively mitigate risks and build investor trust. 

Steps to Align ESG Goals with Science-Based Targets 

Step 1: Understand Your Current Carbon Footprint 

Start by measuring your organisation’s current emissions across Scope 1, Scope 2, and Scope 3 categories. Comprehensive carbon accounting helps identify areas with the highest impact and opportunities for reduction. 

As you gather this data, consider the challenges of accurately tracking emissions, particularly for Scope 3 categories, which include supply chain and logistics. Reliable carbon accounting software plays a crucial role in streamlining this process. Platforms like Mavarick's ESG management software provide an integrated solution to track, analyse, and manage emissions data comprehensively. With Mavarick, organisations can ensure that their data is accurate, actionable, and aligned with global standards. 

Key Actions: 

• Use Mavarick's carbon accounting software to track emissions accurately. 
• Collect data from energy consumption, supply chains, and transportation. 
• Engage external consultants for third-party verification if necessary. 

For detailed insights, explore our blog on supply chain emissions and carbon accounting software. 

Step 2: Define ESG Goals Aligned with Business Objectives 

Evaluate your organisation’s mission, vision, and long-term strategy to define ESG goals that align with corporate priorities. Ensure these goals address material issues relevant to stakeholders. 

Example Goals: 

• Transitioning to 100% renewable energy (Scope 2 emissions). 
• Reducing supply chain emissions by 30% within five years (Scope 3 emissions). 
• Enhancing energy efficiency in manufacturing processes. 

Step 3: Set Science-Based Targets 

Submit your emission reduction targets to the SBTi for validation. The targets should: 

• Cover all relevant emission scopes. 
• Be aligned with a 1.5°C trajectory. 
• Include intermediate milestones for tracking progress. 

SBTi Resources: 

• Target-setting toolkits. 
• Sector-specific guidelines. 
• FAQs for first-time applicants. 

For practical guidance on aligning ESG goals with frameworks like SBTi and CDP, read this article by Lythouse. 

Step 4: Develop a Roadmap for Implementation 

Once targets are set, create a detailed roadmap that includes initiatives, timelines, and key performance indicators (KPIs) to achieve them. Assign roles and responsibilities across departments. 

Key Elements: 

• Energy efficiency measures in operations. 
• Renewable energy procurement. 
• Collaboration with suppliers to reduce Scope 3 emissions. 

Step 5: Integrate ESG and SBTs into Governance 

Integrate ESG metrics and SBTs into board-level discussions, performance reviews, and decision-making processes. This ensures accountability and aligns organisational culture with sustainability objectives. 

Governance Tips: 

• Appoint an ESG committee or task force. 
• Link executive compensation to sustainability KPIs. 
• Conduct regular progress reviews. 

Step 6: Leverage Technology for Monitoring and Reporting 

Technology plays a critical role in tracking ESG and carbon reduction progress. Use ESG management software to collect, analyse, and report data in real time. 

Features to Look for in ESG Software: 

• Automation for Data Collection and Reporting: Streamline the process of gathering and analysing data across operations and supply chains, reducing manual effort and errors. 
• Integration with Supply Chain Systems: Enable seamless data flow from suppliers, ensuring Scope 3 emissions are accounted for effectively. 
• Alignment with Global Frameworks: Ensure compliance with standards like the GHG Protocol, TCFD, and CDP requirements. 
• Customised Dashboards and Analytics: Provide industry-specific insights and real-time updates to monitor progress and adjust strategies. 
• Scalability and Flexibility: Adapt to the unique needs of organisations of different sizes and industries, from SMEs to multinational corporations. 

Discover how Mavarick’s ESG management software can simplify this process. 

Step 7: Communicate Progress to Stakeholders 

Transparency is essential. Publish progress reports detailing achievements and areas for improvement. Highlight how aligning ESG goals with SBTs contributes to broader corporate and societal benefits. 

Communication Channels: 

• Annual ESG reports. 
• Investor briefings. 
• Social media updates. 

Challenges in Aligning ESG Goals with Science-Based Targets 

Aligning ESG goals with SBTs is a comprehensive process that poses several challenges: 

1. Data Availability and Quality 

Collecting accurate data, particularly for Scope 3 emissions, is complex due to reliance on suppliers and third parties. Inconsistent reporting frameworks and limited data-sharing capabilities exacerbate this issue. Adopting digital tools for data collection and fostering supplier collaboration can mitigate these problems. 

2. Resource Constraints 

Small and medium enterprises often lack the financial and human resources to implement ambitious targets. Outsourcing data analysis and leveraging grants for sustainability can help ease the burden. 

3. Supply Chain Collaboration 

Global supply chains complicate carbon accounting and emission reduction. Effective supplier engagement strategies, such as training programs and collaborative platforms, are essential. Explore how Mavarick’s supplier engagement strategies blog can help your organisation navigate these complexities and enhance collaboration with suppliers. 

4. Evolving Regulations 

The regulatory landscape is continually shifting. Companies must remain updated on changes to frameworks like SECR and SBTi. Regular policy monitoring and internal compliance audits are key to staying ahead. 

External tools and advisory platforms, such as SBTi resources, offer critical insights into overcoming these barriers. 

Case Studies: Successful Alignments of ESG Goals and SBTs 

1. Microsoft 

Microsoft’s commitment to becoming carbon-negative by 2030 demonstrates the integration of ESG goals and SBTs. The company has implemented renewable energy projects, advanced carbon capture technologies, and comprehensive Scope 3 emissions management. Learn more about Microsoft’s initiatives on their sustainability website. 

2. IKEA 

IKEA has set science-based targets to achieve climate positivity by 2030. This includes working closely with suppliers and customers, improving product circularity, and transitioning to renewable energy. Their latest initiatives are detailed on their sustainability page. 

3. A Medical Device Manufacturer’s Carbon Accounting Success 

One of the medical device manufacturer, achieved significant improvements in their carbon accounting and reporting processes. By leveraging Mavarick's platform, the company accurately tracked Scope 1, 2, and 3 emissions, aligned its ESG goals with SBTs, and reduced operational inefficiencies. Learn more about this success story here. IKEA has set science-based targets to achieve climate positivity by 2030. This includes working closely with suppliers and customers, improving product circularity, and transitioning to renewable energy.

The Role of Carbon Accounting Software in Aligning ESG and SBTs 

Carbon accounting software plays a pivotal role in enabling organisations to align ESG goals with science-based targets. Here’s how: 

1. Data Integration and Centralisation 

Software tools aggregate emission data across Scope 1, 2, and 3 categories, enabling holistic tracking and reporting. Tools like Mavarick’s ESG platform offer real-time monitoring. 

2. Real-Time Insights for Decision-Making 

Dynamic dashboards provide actionable insights into areas of improvement. This facilitates timely interventions to stay on track with SBTs. 

3. Compliance and Reporting 

Automated reporting ensures adherence to frameworks like the GHG Protocol and CDP. This builds credibility with stakeholders. 

4. Industry-Specific Customisation 

Carbon accounting software tailors features to specific industries, addressing unique challenges in emissions tracking and management. 

Leveraging advanced tools not only simplifies compliance but also fosters a culture of accountability and innovation. 

Conclusion: Paving the Way for a Sustainable Future 

Aligning ESG goals with science-based targets for carbon reduction is not just a compliance exercise—it is a business imperative. Companies that proactively embrace this alignment demonstrate leadership, build resilience against climate-related risks, and gain a competitive edge in a sustainability-conscious market. 

By understanding your carbon footprint, setting credible targets, leveraging technology, and fostering transparency, your organisation can contribute to global climate action while creating value for stakeholders.

Contact Mavarick today to learn how our solutions can simplify your journey toward a sustainable future. 

‍

Heading 1

Heading 2

Heading 3

Heading 4

Heading 5

Heading 6

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur.

Block quote

Ordered list

1. Item 1
2. Item 2
3. Item 3

Unordered list

• Item A
• Item B
• Item C

Text link

Bold text

Emphasis

^Superscript

_Subscript