Science-based Target initiative (SBTi) is one of the approaches used to help organisations with their carbon accounting responsibility. It is one of the drastic ways scientifically set up to help companies fight their carbon footprint and emissions. However, SBTi is not an interesting topic even for big corporations, probably because they don’t understand how it works.
The benefits of the SBTi are enormous. It’s a global initiative that started in 2014. Furthermore, several organisations are now part of the SBTi. Currently, more than 3000 organizations are part of the initiative. Read and learn how the SBTi can help your business grow.
Science-Based Target Initiative (SBTi) explained
As you already know, the science-based targets initiative started in 2004, and the goal is to motivate companies to reduce their carbon footprint. One of the ways SBTi helps companies implement emission reduction is to set targets that are scientifically based. The best part is that any company with the intention to reduce its carbon emission can be part of the SBTi.
Nevertheless, to join the SBTi, you need to write a letter and show your commitment to using science-based initiatives to reduce your company’s emissions. Meanwhile, SBTi will also offer personalised assistance to help you achieve your environmental goals. Based on this, the SBTi is a great organisation to be and boasts your chances of partnering with great environmentalists.
How will joining SBTi benefit your organisation?
With the world population becoming aware of the dangers of climate change, any organisation not following the trend may lose out on big deals. For instance, businesses that didn’t take advantage of the internet have either folded or not doing well. This pattern is likely to happen to companies that don’t take climate change seriously. Below are the benefits of SBTi below.
Brand reputation
Consumers are becoming aware of the effects of their choices, including how they affect the environment. Recently, ethical consumption has become a hot topic among environmentally sensitive consumers. Nowadays, a brand’s reputation for sustainability is very important for most consumers. According to a survey conducted by corporate executives, businesses that were signed up to the SBTi had a better brand reputation among customers.
Investor confidence
Interestingly, aside from customers, investors use sustainability as a benchmark before patronising your business. These days, investors use sustainability as a benchmark before starting any partnership with any organisation. Your business environment policies could deprive you of juicy contracts from investors. Several business executives who have joined a sustainability program have testified that it improves their relationship with investors. Investors will perceive your organisation as a fast-thinking business. Also, sustainability appeals to many ethical-minded investors.
Savings improves
If you believe joining SBTi is mainly to drive your clientele up, then you have not gotten the point. If you have more clients, your business profit will go up, and you will have more to save. Another dimension is that sustainability in business helps you to save costs. For instance, instead of traveling to the US for a board meeting, you can carry out a Zoom meeting with members and save a lot of cost. Aside from that, you will also reduce the possibility of accidents and manpower loss. Sustainability makes your budget lean, and if you stick to it, your organization will save a lot of costs.
Competitive edge
When you engage in sustainability, your business is seen as a trailblazer. In other words, customers and investors will prefer to associate with you because of this perception. Their mindset is that you are always thinking faster than others. Based on this, customers and investors are likely to patronize your businesses. Aside from that, this approach reduces uncertainty and offers your partners more assurance to work with you. Your competition will think you are doing something different, but your sustainability approach to business has changed everything.
Increased innovation
Opening up your business to sustainability will improve your innovative prowess. In other words, you will get more ideas on ensuring your business. Also, STBi will offer your business tips that will make a difference. About 63 percent of the people who participated in a survey conducted about SBTi said that their businesses are already sensitive and always developing science-based initiatives.
Attract and retain top employees
These days, to attract the top minds in your industry, you have to include sustainability in your objectives. You cannot attract top employees in your industry if you don’t have certain things in your business. You will be surprised to know that some employees or experts in your field will reject an employment offer because your operations are not sustainable.
How long does SBTi approval take?
The timeframe to get an SBTi approval is between 60 business days. Meanwhile, you must comply with all the SBTi requirements before you can get the approval. One of the criteria to join the SBTi is that your organization must be willing to align with the Net-Zero Standard. The long-term target of this organization is for member companies to cut their emissions by 90 percent by 2050. At some point, if your commitment to SBTi fails, you will be removed and your approval revoked. Furthermore, big names like Amazon were part of the SBTi, but their membership was revoked at some point because they failed in their commitment. Not to mention, if you are interested, call on specialist companies to help join SBTi.
Conclusion
The world is evolving, and most of the population has embraced sustainable ways of doing business. Practically, it may be impossible to believe that people are now more environmentally conscious than before, but it’s true. The heat waves and the unprecedented cold weather have made everyone aware that the climate needs to be protected at all costs. Furthermore, there are practical ways to become more climate-friendly now than in the past. Joining the SBTi will highly improve your organization’s credibility among future thinkers. Finally, turning green is not an easy adventure, but you can partner with great minds like Greenly to start.
