With the SBTi 2025 targets rapidly approaching, it is imperative for corporates to not only grasp the significance of SBTi compliance but also to strategically position themselves to meet these critical carbon reduction targets.

Understanding the Science-Based Targets Initiative

The Science-Based Targets initiative (SBTi) is a globally recognized collaboration among leading organizations, including CDP, United Nations Global Compact, World Resources Institute (WRI), and the World Wildlife Fund (WWF). Its mission is to guide companies in setting greenhouse gas (GHG) emissions reduction targets that align with the objective of limiting global warming to well below 2°C above pre-industrial levels, and ideally to 1.5°C, as outlined in the Paris Agreement. For businesses in the UK and Ireland, adhering to SBTi standards is not merely an environmental responsibility but a strategic imperative that enhances resilience against regulatory shifts, evolving market demands, and investor scrutiny.

SBTi 2025 targets for UK and Ireland corporates

The SBTi 2025 targets are a voluntary set of goals that companies are encouraged to achieve by 2025 to align with the global effort to limit warming to 1.5°C. These targets involve setting ambitious near-term goals and actively reducing emissions. By 2025, SBTi encourages companies to procure 80% of their electricity from renewable sources, progressing to 100% by 2030 – in line with RE100 recommendations. Additionally, companies – especially in sectors like manufacturing and retail – must engage their suppliers to reduce Scope 3 emissions, which often constitute the largest portion of their carbon footprint. Aligning with these targets not only demonstrates climate leadership, but also positions companies ahead of potential future regulations – particularly in countries like the UK, which has committed to achieving net-zero emissions by 2050. For companies operating in the UK and Ireland, the SBTi targets are both a challenge and an opportunity to demonstrate excellence in corporate sustainability.

The importance of SBTi compliance and 2025 carbon reduction targets

The UK’s legally binding commitment to achieving Net-Zero by 2050 and zero-carbon electricity production by 2035 underscores the urgency for companies to align with science-based targets. For businesses in the UK and Ireland, meeting the SBTi 2025 targets is not just about compliance—it is a strategic necessity that offers substantial benefits. Setting science-based targets is a key strategy for future-proofing growth, reducing costs, mitigating regulatory risks, and enhancing both investor confidence and competitiveness.

Regulatory alignment and risk management: Adopting science-based targets allows companies to stay ahead of regulatory changes. As environmental regulations tighten, businesses aligned with SBTi are better positioned to comply with new standards, reducing regulatory risks and gaining favor with policymakers. 

Investor confidence and capital access: As sustainability becomes a central tenet of investment strategies, companies that commit to science-based targets are more likely to attract and retain investment. SBTi compliance not only enhances capital flows but also improves market valuation, providing a robust foundation for sustained growth. 

Consumer expectations and brand loyalty: In an era where consumers increasingly prioritize brands that align with their environmental values, achieving SBTi compliance is a powerful demonstration of genuine commitment to sustainability. This alignment strengthens customer relationships, enhances brand loyalty, and reinforces market position. 

Operational efficiency and cost reduction: The journey towards meeting carbon reduction targets often uncovers operational inefficiencies. By optimizing processes and investing in energy efficiency, businesses can lower operational costs while advancing their sustainability goals. This dual advantage makes SBTi alignment an essential component of a forward-looking business strategy. 

Aligning your business strategy with the SBTi 2025 targets

To effectively meet SBTi 2025 targets, particularly those related to Scope 2 emissions, UK and Ireland corporates should adopt a proactive, strategic approach that integrates sustainability into the core of their business operations. Here’s how they can do it: 

1. Invest in renewable energy: Achieve the 80% renewable electricity target by 2025 by securing energy from RE100-compliant sources and adapting procurement strategies in line with the updated criteria. In the UK, this includes sourcing Renewable Energy Guarantees of Origin (REGOs), which ensure that the electricity used comes from renewable sources. By leveraging REGOs, your organization can report reductions in Scope 2 emissions in compliance with CDP, SBTi, and RE100 guidelines – directly aligning your energy consumption with your SBTi targets. 

2. Enhance energy efficiency: Focus on reducing energy consumption through efficiency measures such as upgrading to energy-efficient technologies and optimizing operational systems. 

3. Engage with stakeholders: Transparently communicate sustainability goals and progress to all stakeholders, including investors, customers, and employees, to build trust and foster support. 

4. Monitor and report progress: Regularly track and report progress towards meeting SBTi 2025 targets. This not only ensures accountability but also strengthens relationships with key stakeholders by demonstrating commitment and transparency. 

Taking decisive action towards the SBTi 2025 targets

The SBTi 2025 targets represent a pivotal moment in the global effort to address climate change. For businesses in the UK and Ireland, aligning with these carbon reduction targets is essential to secure a competitive edge in a rapidly evolving market landscape. 

The time to act is now. By setting and pursuing science-based targets, ensuring SBTi compliance, investing in renewable energy, and optimizing operational efficiencies, companies can meet the SBTi 2025 targets and position themselves as leaders in the global transition to a sustainable, low-carbon economy. These strategic decisions made today will influence the future of corporate decarbonization. 

Contact our experts to learn more about how you can procure renewable energy and meet your SBTi 2025 targets.