Some 91% of companies that set science-based climate targets report an overall positive business impact from doing so, a new report from the Science Based Targets initiative (SBTi) has found.
According to the SBTi‘s report, The Impact of Setting Science-Based Targets on Businesses, which drew on a survey of 171 companies with validated targets and 22 studies, positive benefits from setting such targets include strategic cohesion, stakeholder confidence, financial performance, and climate impact.
‘Enhanced reputation’
As the study found, almost all (95%) respondents cited an ‘enhanced reputation’ with stakeholders, while 80% said that setting science-based targets strengthened investor relations.
Independent studies cited in the report suggest that companies with validated targets experienced lower stock volatility and sustained margins during market transitions.
Elsewhere, 92% reported ‘neutral’ or ‘positive’ impacts on long-term financial performance from setting science-based targets, while a majority have also been able to translate climate action into measurable results, with 86% of companies reporting accelerated decarbonisation.
‘A clear business case’
“These results show that ambitious climate action isn’t just good for the planet – it drives competitiveness, investor confidence, and long-term growth,” commented David Kennedy, chief executive officer of the SBTi.
“Companies now have a clear business case—in a volatile world continuing to act boldly on climate, guided by robust, science-based frameworks, secures stronger preparedness for market demands, risk management, and growth planning.”
The report also quoted several firms that have set science-based targets, with Ada Chávez, senior engineer, net-zero lead at Lenovo saying that setting SBTi targets has been “transformative” for the business, and Emily Jackson, senior vice president of sustainability at The Economist Group, noting that setting a target has “helped guide our path from ambition to action.”
According to the SBTi, the number of companies setting near-term science-based targets has doubled, while the number of net-zero targets has tripled in the past 18 months. Today, the SBTi works with 11,000 businesses across 86 territories, representing over 40% of global market capitalisation. Read more here.
