The Science-Based Targets Initiative (SBTi) reports that nine out of 10 companies say their targets boost their business performance in terms of strategic cohesion, stakeholder confidence, financial performance and climate impact.
The SBTi surveyed 171 companies with validated targets and 22 studies. Their report shows that 91% of companies report overall positive business impacts, particularly in strategic cohesion, stakeholder confidence, financial performance and climate impact.
Almost all (95%) companies reported enhanced reputation with stakeholders, with 80% spotlighting strengthened investor relations as well as improved strategic cohesion and long-term vision. Independent studies highlighted in the report also indicated companies with targets experience lower stock price volatility and maintain strong margins during transition.
Over 90% reported neutral or positive impacts on long-term financial performance, with studies providing no evidence of negative gross margin or profitability impacts.
And nearly 90% reported accelerated decarbonization since setting targets.
“Setting SBTi targets has been transformative for Lenovo,” said Ada Chávez, Lenovo’s Senior Engineer-Net-Zero Lead. “It has […] strengthen[ed] confidence among investors, customers, suppliers, and employees. Internally, it has helped us align our global teams under a clear, credible framework.”
The adoption of science-based targets continues to accelerate: the number of companies with near-term targets has doubled, and net-zero targets have tripled in just 18 months. Today, the SBTi works with 11,000 businesses across 86 territories, representing over 40% of global market capitalization.
“In 2021, we set our first science-based target,” said Emily Jackson, Senior Vice President of Sustainability at The Economist Group. “In 2024, we exceeded that target, cutting our emissions by 34% compared with our 2020 base year. We have since increased our ambition: our current near-term target is to reduce absolute emissions by 43% by 2030. Setting a science-based target has helped guide our path from ambition to action.”
