Science Based Target Initiative (SBTi)

What is the Science Based Target Initiative?

The Science Based Target Initiative (SBTi) guides entities in the collective movement to limiting global warming to 1.5C and preventing more extreme climate change events. As stated on their website, the SBTi “defines and promotes best practice in emissions reduction and net-zero targets in line with climate science”. SBTi guidance aims to create target setting methods and associated pathways that organizations can use to reduce their scope 1, 2, and 3 emissions.

SBTi’s latest draft guidance establishes building-specific pathways to limit associated emissions. The draft Buildings Sector Science Based Target Setting Guidance introduces new requirements for companies with significant building portfolio footprints to establish stringent building emission targets around the 1.5C pathway. The guidance document focuses on in-use operational emissions and upfront embodied emissions, including a new reporting tool for applying regional targets across multiple building typologies. The guidance also provides much needed clarity on scope 3 reporting as it relates to embodied carbon.

Who does it apply to and why is this important?

If you have already committed to Science Based Targets (SBTs) or are considering committing, this new guidance will become part of your regular reporting requirements. Additionally, if you are classified as any one or more of the following user-groups, this new guidance will likely require disclosure of operational and embodied carbon impacts of your built environment projects.

• Financial Institution
• Developer
• Owner-occupier
• Owner-lessor
• Property Manager
• Tenant

Further, if a significant portion of your total annual emissions (Scope 1,2,3) are building-related and exceed 25,000 MTCo2e and/or your building portfolio exceeds 100,000 m2 in your chosen base year, you are required set in-use operational targets and set a fossil fuel phaseout commitment.

If new upfront embodied carbon emissions (new building construction) represent a significant portion of your real estate portfolio within any of the three years prior to your base year, you may need to set embodied carbon targets. The new draft guidance sets clear requirements on scope 3 inclusion in target boundaries to help you navigate this.

When does this become important?

SBTi is forming a pilot study to co-develop this draft guidance alongside companies to ensure feasibility and action.

Organizations interested in piloting the guidance and getting direct feedback from SBTi must demonstrate interest in the study by December 10th, 2023, to participate. Once pilot results are recorded and the final guidance is published, eligible entities with have six months to comply with the requirements and incorporate the new guidance into their reporting protocols.

SBTi formed a pilot study to co-develop this draft guidance alongside companies to ensure feasibility and action. Organizations interested in piloting the guidance and getting direct feedback from SBTi were to demonstrate interest in the study by mid-December 2023, to participate. Once pilot results are recorded and the final guidance is published, eligible entities with have six months to comply with the requirements and incorporate the new guidance into their reporting protocols.