The latest climate science sends a clear warning that we must dramatically curb temperature rise to avoid the catastrophic impacts of climate change.

 

Frameworks like the Science-Based Targets Initiative (SBTi) play an important role in guiding businesses toward meaningful action as part of this worldwide effort.

 

What Is the SBTi?

 

The Science-Based Targets Initiative (SBTi) is a global effort to help companies and financial institutions reduce their environmental impact. The SBTi ensures that businesses set clear goals to lower their greenhouse gas (GHG) emissions in line with the Paris Agreement, which aims to limit global warming to 1.5°C above pre-industrial levels. The latest criteria, specifically for the buildings sector, were published yesterday, further guiding companies in this crucial industry on how to align with these climate goals.

 

Why Focus on the Buildings Sector?

 

The buildings sector, which includes everything from constructing and financing new buildings to managing existing ones, is a major source of carbon emissions. This is caused by the energy used to heat, cool, and power buildings, as well as the carbon released during construction. The SBTi has developed specific criteria to help companies in this sector reduce their emissions effectively.

 

The Most Important Points of the SBTi Buildings Criteria

 

     1. Applicable Companies and Institutions

 

The criteria apply to companies that own, develop, manage, or finance buildings. This includes everyone from developers and property managers to financial institutions with real estate investments.

 

     2. Setting Emission Reduction Goals

 

Companies must set goals to reduce emissions from all parts of their operations. This includes both the energy used in buildings and the carbon emissions from building materials (known as "embodied carbon").

 

     • Stop Fossil Fuel Installations: Companies need to publicly commit to stop installing new fossil fuel-based systems (for heating, cooking, power, and hot water) in their buildings from 2030.

     • Reduce In-Use Operational Emissions: Focus on reducing emissions from building energy use, adjusted to local needs.

     • Cut Embodied Emissions: As new buildings are constructed, emissions are produced from materials and construction activities. With global building space expected to grow with 15% by 2030, companies must set targets to reduce their embodied emissions with at least 25% compared with the 2023 results.

 

     3. How to Set These Goals

 

The SBTi provides specific methods for companies to follow when setting their targets. These methods consider the type of buildings a company deals with and where they are located. For example, a developer must focus on reducing emissions from construction materials, while a property manager might focus on reducing energy use in buildings they manage.

 

     4. Transparency and Reporting

 

Companies must report their progress regularly. This includes providing detailed information about their emissions and how they are being reduced. Transparency is key to ensuring that the targets are met.

 

     5. Special Guidelines for Financial Institutions

 

Financial institutions that invest in real estate also need to set targets for the emissions generated by the buildings they finance. These targets must align with the overall goals of reducing emissions across the sector.

 

Why Is This Important?

 

Following the SBTi Buildings Criteria helps companies contribute to global climate goals. It’s not just about meeting regulations; it’s about being part of the solution to climate change. Companies that set and achieve these targets are leading the way toward a more sustainable future, ensuring that buildings are not only efficient and cost-effective but also environmentally friendly.

 

Carbon Tool: Easily Achieve Your Emission Targets

 

Carbon Tool helps businesses to measure, manage, report, and reduce their impact. By using Carbon Tool, companies can set targets and meet their climate goals in line with the SBTi criteria, while also monitoring their progress in a transparent and accountable way. Our tool allows clients to make smart, informed decisions that significantly cut down their carbon footprint, moving us closer to a sustainable future.
 

Carbon Tool is continuously evolving, with the updates mentioned in this article currently already in the process of being implemented in our Targets module. Stay tuned for more information on this topic, we'll be back next week with a user-friendly approach for setting SBTi targets.