March 27, 2023
The Science-Based Targets Initiative (SBTi), the rapidly growing leader in the sustainability target setting space, has evolved significantly in recent years. Since their launch in 2014, thousands of companies have committed to and set Science-Based Targets (SBTs) for near-term (5-10 years out) greenhouse gas emissions reductions. Since the launch of their new Net Zero Standard in October 2021, SBTi has started to provide verification for ambitious long-term (out to 2050) targets as well, reflecting the increasing urgency of the climate crisis. The majority of SR Inc Member-Clients either have approved SBTs, are in the process of getting their targets validated, or are investigating the possibility of committing to SBTi.
With this new influx of companies seeking approved long-term targets, in addition to those still working to set near-term ones, SBTi has revamped their submission process, launching a new portal in February 2022. However, the process is far from running smoothly, with extensive timing delays and lacking communication channels. In order to facilitate a smoother validation process, SR Inc outlined step wise guidance for submitting both near- and long-term SBTs, including insights from Member-Clients on various parts of their own target validation with SBTi, in our newly published Member Advisory “SBTi Submittal Process Overview.” A preview of the guidance can be found below:
Step 1: Signing the Commitment Letter
The first step of setting an SBT is by far the easiest, which is signing the SBTi Commitment Letter. This standardized letter lets SBTi know which types of targets your company plans to submit (near-term, long-term, and/or updates to existing approved targets). Once submitted through their application system, SBTi will perform a due diligence screening on your letter, and consequently list your company as “Committed” on the SBT website. The website is updated every Thursday, and you will receive an email notification that your commitment has been confirmed, typically within ~2 weeks of submission.
Step 2: Submitting your Targets
Once your company has committed to SBTi, it is time to prepare for submission of your actual targets. Different forms are required for near- vs. long-term target submissions, as well as near-term target updates. In addition to the forms themselves, SBTi provides separate guidance on what they are looking for from your submission. If you are submitting for both near- and long-term goals together, some of the information will be repetitive between forms (i.e. details on your baseline). For any companies submitting long-term targets, note that you’ll need to fill out both a Word Document and Excel submission form.
Step 3: Scheduling your Validation Date
Once you have submitted the appropriate forms, the booking system will prompt you to reserve a date for validation services to begin. This date represents the date by which SBTi is required to have begun reviewing your submission; this is not an actual meeting with SBTi staff.
While SBTi is working to increase their administrative capacity, as of February 2023, there was an approximately 8 month waiting period for a validation date post-submission. Because of this delay, SR Inc recommends submitting your forms and scheduling your validation date as soon as possible.
Step 4: Contract Signing
As part of the new system launched in February 2022, SBTi now employs a target validation service contract to begin the full assessment process. Once SBTi has screened your application to ensure all the necessary information has been provided, they will contact you prior to your scheduled validation date to execute the contract. According to SBTi, “target validation decisions are issued within 30-60 business days of contract execution,” but this is only true if all questions from SBTi are responded to within two business days (see Step 5), which is often not practical depending on the nature of the question.
Step 5: Feedback Period
Once they have begun their review, SBTi will provide feedback and questions on your submission. This feedback may require additional work on your end, often in regard to recalculating your footprint to ensure all potential sources of emissions have been considered. The length of this feedback period, as mentioned above, is somewhat dependent on how quickly you are able to provide responses to SBTi.
Step 6: Validation (and Resubmission, as necessary)
After the review period, SBTi will determine whether or not they are able to validate your Science Based Targets. If your targets are approved, they will be published to the SBTi website one month later. SBTi specifies that “your target must be made public within six months of approval, or it will require revalidation to ensure it is in line with the latest science-based criteria.” This can include communication through your company’s ESG or CDP reporting, and SBTi also provides companies with approved targets with tools for sharing your targets publicly.
If your first submission is not validated by SBTi, you are able to resubmit a second time within six months from receiving notice of SBTi’s decision for no additional cost. However, no SR Inc Member-Clients have been denied on their first submission, even those who have had to go through more in-depth review periods.
For the full Member Advisory with key Member-Client insights to the process, Member-Clients should refer to the SR Inc Digital Library. SR Inc welcomes the opportunity to support additional Member-Clients throughout their SBTi submission and validation process with best-practice, case-based guidance.
As an Analyst at SR Inc, Casey supports Member-Clients with outsourced program assistance and creates original research to help clients drive industry best practice in areas ranging from ESG governance structures, ESG reporting, and innovative renewable energy procurements.
Prior to working at SR Inc, Casey served as an AmeriCorps VISTA with Hawai‘i Green Growth Local2030 Hub, convening and collaborating with over 70 diverse partners across the Ala Wai watershed on sustainability and resiliency initiatives. This work involved cultivating individual relationships with community, government, and business partners, and driving forward the creation of a comprehensive project assessment tool rooted in indigenous knowledge systems and design economics. She graduated with a Bachelor of Arts in Environmental Studies from Boston College, during which time she also interned with Brookline-based organization Boyer Sudduth Environmental Consultants, providing small business clients with sustainability best practice research, as well as exposure through a number of published blog articles. Casey has also held certification as a LEED Green Associate through the US Green Building Council since 2019.
