Climate Targets & SBTi
Developing climate targets – from carbon footprint to reduction pathway
Climate targets set out the emissions a company aims to reduce and by when. They are key to managing climate-related issues and planning measures and investments. As such, they form an important basis for sustainability strategy and reporting. SuCo supports companies in developing climate targets and reduction pathways – based on a greenhouse gas inventory and aligned with relevant standards such as the SBTi, as well as Swiss regulatory frameworks such as the Climate and Innovation Act.
Why climate targets are worthwhile for your business
Effective climate targets are based on a robust carbon footprint. They take relevant emission sources into account, have a clear base year and target year, and are linked to specific measures. Climate targets benefit companies by:
- Strengthening positioning: Ambitious climate targets can help companies differentiate themselves in the market and position themselves vis-à-vis customers, investors, employees and business partners. Ratings organisations such as CDP and Ecovadis also ask about climate targets.
- Meeting the requirements of customers and business partners: Companies are increasingly receiving requests for climate data and targets from customers, business partners or in tenders. Climate targets help to meet such requirements.
- Assessing the impact of measures: Climate targets make it possible to assess the effectiveness of implemented measures. This reveals whether the measures are contributing sufficiently to achieving the target or whether further action is required.
- Meeting regulatory requirements: Depending on the company’s context, information on climate targets and reduction pathways may be relevant under the CSRD/ESRS or Article 964 of the Swiss Code of Obligations (OR). In Switzerland, the Climate and Innovation Act, with its net-zero target by 2050, also sets an important framework for reducing Scope 1 and Scope 2 emissions.
- Strengthening reporting and communication: Climate targets are an important part of the sustainability strategy and communication with customers and business partners.
What is the SBTi?
SBTi stands for the Science Based Targets initiative. The initiative provides methodologies that enable companies to develop science-based climate targets. A climate target in line with SBTi demonstrates that a company’s planned reduction pathway is consistent with the Paris Agreement.
SBTi is particularly relevant when a company wishes to set ambitious climate targets that are science-based and verifiable by external parties. SBTi-validated climate targets are valuable when communicating with customers and other stakeholders, as they are based on a recognised methodology and confirm an ambitious reduction target.
Not every company needs SBTi-validated targets. However, the methodology can also be used as a guide for a robust reduction pathway even without formal validation.
If you would like to find out more about SBTi, please get in touch here with no obligation. We are accredited as an ‘SBTi Certified Expert’ and would be happy to answer your questions.
How SuCo supports you
We work with you to develop climate targets that are tailored to your current situation and requirements. Depending on your needs, we base our approach on recognised standards and requirements, such as the SBTi.
Our approach – in three steps
1. Review or prepare a carbon footprint assessment
To begin with, we check whether a robust carbon footprint assessment in accordance with the GHG Protocol is available. If an assessment already exists, we check whether it meets the SBTi’s requirements. If no assessment is yet available, we will assist you with the carbon footprint assessment.
2. Calculating a reduction pathway
We calculate a reduction pathway based on the carbon footprint. In doing so, we define the system boundary and assess which base year and target year are feasible and appropriate. We identify options for the level of reduction. Where required, we align this with the SBTi or the 2050 net-zero target in accordance with the Climate and Innovation Act.
Result: A presentation of the options for climate targets (system boundaries; reduction level; base year; target year), including a recommendation.
3. Developing reduction measures and a roadmap
We then help you to develop and prioritise suitable reduction measures. Together, we determine which measures will help you achieve your targets, when they should be implemented, and what investments are required. The result is a roadmap: this sets out the measures along a timeline and provides a basis for monitoring, internal planning and reporting. If required, this roadmap can be further developed into a climate transition plan.
What you receive from us
Typical project deliverables include:
• Climate targets – in accordance with the SBTi or aligned with the Climate and Innovation Act, as required
• A calculated reduction pathway based on the greenhouse gas inventory
• A description of the methodology used to derive the climate targets
• A roadmap
• Overview of measures with priorities, timeframe and responsibilities
• Text modules for sustainability reports, climate reporting or websites
Project Examples
Climate Targets
Book a free initial consultation.
We invite you to acquaint yourself with us – with no obligation and tailored to your specific requirements.
FAQ
Climate targets set out the extent to which a company intends to reduce its greenhouse gas emissions and by when. They are based on a carbon footprint.
A distinction is often made between short-term and long-term climate targets. Short-term climate targets usually cover a period of five to ten years; common target years include 2030 or 2035. Long-term climate targets describe the desired end state, often by 2040, or by 2050 at the latest – by which time net zero must have been achieved. A combination of the two makes sense: the long-term target sets the direction, whilst short-term targets provide incentives for prompt action.
Net zero means that companies have reduced all greenhouse gas emissions that can theoretically be reduced – and that any remaining emissions are offset (through negative emissions or carbon removal).
A reduction pathway shows how a company’s emissions are expected to develop from the base year to the target year. It highlights the annual or periodic reductions required to achieve the climate target.
The Climate and Innovation Act enshrines the target of net zero by 2050 in Switzerland. This target covers Scope 1 and 2 emissions. It may therefore be advisable for companies to set a climate target aligned with this framework. Such a target helps to plan reduction pathways, measures and investments at an early stage.
SBTi stands for the Science Based Targets initiative. The initiative provides methods that enable companies to develop science-based climate targets. An SBTi target indicates whether a reduction pathway is consistent with the Paris Agreement.
No. Not every company needs SBTi-validated climate targets. The SBTi can be useful if climate targets are to be derived on a science-based basis, externally validated, or communicated to customers, investors and other stakeholders.
The most important basis is a carbon footprint – also known as a greenhouse gas inventory. It shows the company’s emissions under Scope 1, Scope 2 and Scope 3. In addition, information is required on planned measures, growth forecasts and relevant business areas.
Not necessarily. According to the SBTi, small businesses have the option of setting climate targets only for Scope 1 (direct emissions from their own sources, e.g. from heating systems, vehicles and production facilities) and Scope 2 (indirect emissions from purchased energy, in particular electricity or district heating). In this way, they focus first on the emissions they can directly influence. The Climate and Innovation Act also places the emphasis on Scope 1 and 2: companies in Switzerland are obliged to reduce these emissions to net zero by 2050. A climate target for Scope 1 and 2 is therefore a sensible starting point for planning reduction measures and investments at an early stage. Scope 3 (indirect emissions along the value chain, e.g. from purchased goods, transport and business travel) should nevertheless be taken into account and gradually reduced.
A robust carbon footprint assessment records a company’s relevant emissions in a transparent manner and in accordance with a recognised methodology, usually the GHG Protocol. This includes defined system boundaries, classification under Scopes 1, 2 and 3, and a documented data set. It forms the basis for deriving meaningful climate targets, reduction pathways and measures. You can find out more in our CO₂ accounting service.
A climate transition plan sets out how a company intends to achieve its climate targets. It brings together the emissions reduction pathway, measures, responsibilities, timetable and monitoring. Depending on the requirements, a transition plan may also form part of sustainability reporting.
As we understand it, a roadmap is a concrete plan of action and timetable focused on short- to medium-term goals – for example, by 2030 or 2035 – and describes in relatively precise terms which steps are to be implemented next. A climate transition plan goes beyond this. It is more of a strategic action plan that integrates climate targets into the corporate strategy and explains how the business model is being aligned with the transition to a low-carbon economy.
SuCo does not implement climate measures itself at an operational level. We support you with the planning: this includes reduction pathways, roadmaps and climate transition plans.