Introduction
In the race against climate change, businesses worldwide are being urged to decarbonize. But how do they know what targets to set? Enter the Science-Based Targets initiative (SBTi)—the global authority guiding companies in aligning their emissions reductions with climate science.
But who decides these regulations? What makes SBTi’s framework so important? And why should businesses, particularly in high-emission sectors like food and agriculture, take them seriously?
Let’s break it down.
What is SBTi?
The Science-Based Targets initiative (SBTi) is a globally recognized body that helps companies set greenhouse gas (GHG) reduction targets in line with the Paris Agreement’s goal of limiting global warming to 1.5°C.
It provides clear methodologies, tools, and sector-specific guidance to ensure that corporate climate action is science-based rather than arbitrary.
SBTi covers multiple industries, but for land-intensive sectors like food, agriculture, and forestry, it has introduced the Forest, Land, and Agriculture (FLAG) Guidance—ensuring companies account for emissions from land use, deforestation, and food production.
Who Creates SBTi Regulations?
SBTi’s regulations are shaped by a diverse group of scientists, industry experts, and policymakers. The process includes:
1. Scientific Foundations
SBTi is based on the latest research from IPCC (Intergovernmental Panel on Climate Change) and aligns with internationally accepted frameworks like:
- The Paris Agreement (2015)
- The Greenhouse Gas Protocol
- Global carbon budgets defined by climate scientists
2. Multi-Stakeholder Collaboration
SBTi works with corporations, NGOs, climate experts, and policymakers to create sector-specific standards. Some of its key partners include:
- CDP (Carbon Disclosure Project)
- World Resources Institute (WRI)
- United Nations Global Compact (UNGC)
- World Wide Fund for Nature (WWF)
3. Peer Review & Public Consultation
SBTi doesn’t work in isolation. Before any new regulation or framework is adopted, it undergoes public consultation where companies, investors, and climate scientists provide feedback.
4. Industry-Specific Guidelines
Since different sectors have unique carbon footprints, SBTi develops specialized frameworks. For example:
- FLAG (Forest, Land, and Agriculture) Guidance for food, forestry, and agriculture companies
- Net-Zero Standard for companies aiming for long-term decarbonization
- Sectoral Decarbonization Approach (SDA) for industries like transport and energy
Once finalized, these regulations become the benchmark for corporate climate action.
Why SBTi Regulations Matter
1. Ensuring Credible Climate Action
Without standardized regulations, companies could set vague or weak targets—risking greenwashing. SBTi ensures that emission reduction targets are credible, science-backed, and measurable.
2. Meeting Investor & Consumer Expectations
Today’s investors and consumers are demanding more climate accountability. Many large corporations now require suppliers to have SBTi-approved targets before signing contracts.
3. Regulatory & Compliance Pressure
Governments worldwide are introducing mandatory climate disclosure laws. Companies that align with SBTi are better prepared for future regulations and carbon taxes.
4. Future-Proofing Business Operations
The food industry, in particular, faces climate risks such as droughts, soil degradation, and supply chain disruptions. Reducing emissions through SBTi-aligned strategies makes businesses more resilient and cost-effective.
Final Thoughts: Why Businesses Should Care
SBTi isn’t just another sustainability framework—it’s becoming the gold standard for corporate climate action. Regulations set by SBTi are driven by science, shaped by industry leaders, and built to ensure a real impact on global emissions.
For food companies, adopting SBTi’s FLAG Guidance is no longer optional—it’s a business imperative. Those who act now will:
✔ Build trust with stakeholders
✔ Stay ahead of regulations
✔ Reduce long-term costs and climate risks
In short, aligning with SBTi isn’t just good for the planet—it’s smart business.
