Climate group looks to offer companies ‘menu’ approach to decarbonization

illuminem summarises for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:

🗞️ Driving the news: The Science Based Targets initiative (SBTi) is offering companies a more flexible approach to decarbonization, unveiling a “menu” of options to help businesses meet their net-zero goals
• This new framework allows corporations to tailor their strategies to their specific needs, including the option to use environmental certificates and carbon credits, which have faced some criticism from environmentalists
• The goal is to make decarbonization more accessible and actionable for businesses while maintaining scientific rigor

🔭 The context: As the urgency of addressing climate change intensifies, companies have been under increasing pressure to reduce their emissions
• However, many face challenges in rapidly decarbonizing their operations, particularly when it comes to Scope 1 and Scope 2 emissions (those generated directly by a company and from purchased electricity)
• The SBTi’s new approach aims to balance these challenges with practical solutions, offering a range of tools that companies can use to reduce their environmental impact without compromising their operational realities

🌍 Why it matters for the planet: This shift could help accelerate global decarbonization efforts by making it easier for businesses to adopt sustainable practices and remain committed to long-term climate goals
• While environmental certificates like renewable energy credits (RECs) have been controversial, they provide companies with an immediate way to support clean energy and offset hard-to-abate emissions
• The SBTi’s flexibility may encourage more companies to set and achieve science-based targets, helping to close the emissions gap that threatens global climate stability

⏭️ What's next: The SBTi is seeking public feedback on its new guidelines, which could be finalized by the second quarter of 2026
• As more businesses adopt these updated standards, the effectiveness of the “menu” approach will be closely monitored, particularly regarding its impact on overall global emissions reductions
• SBTi plans to push for detailed transition plans from companies to ensure transparency and accountability in the decarbonization process

💬 One quote: “We’ve listened to a wide range of voices and conducted extensive research to find the sweet spot between climate science and business reality,” said SBTi Chief Executive David Kennedy

📈 One stat: Over 11,000 companies now have science-based targets or are committed to setting them, with 91% of those reporting positive impacts on their organization’s operations

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