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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: David Kennedy, the new CEO of the Science Based Targets initiative (SBTi), emphasized the continued commitment of many businesses to reach net-zero emissions despite recent political and investor pushback
• According to Kennedy, submissions to the SBTi for transition target validations have increased by 30% this year
• He highlighted the importance of a pragmatic, non-confrontational approach to corporate climate action, focusing on both climate targets and the business realities companies face
🔭 The context: Kennedy's appointment comes at a challenging time for corporate climate action, with growing skepticism and opposition to sustainability efforts from certain political and financial sectors
• Despite this, the SBTi remains a crucial entity in setting global standards for corporate emissions reduction
• Kennedy stressed the need to support hard-to-abate sectors like oil, gas, and heavy industry, where emission reductions are more complex and costly
🌍 Why it matters for the planet: SBTi's approach of working pragmatically with businesses, including financial institutions, is critical in scaling up global emissions reductions
• By ensuring companies in difficult sectors can still progress toward net-zero goals, SBTi aims to maintain momentum across industries and regions, fostering broader climate action
• This continued push is key to addressing global climate change, as businesses make crucial transitions in sectors responsible for a significant portion of emissions
⏭️ What's next: The SBTi is preparing to launch a new net-zero standard for financial institutions, as well as a broader net-zero framework by early 2026
• These updates aim to align financial sectors and hard-to-abate industries with science-based targets, ensuring greater accountability and participation in climate action
• Kennedy's goal is to have 20,000 companies with validated targets by 2030, extending the reach of SBTi’s influence
💬 One quote: “This is not about business doing the right thing, it is about business managing its transition risk, and SBTi being part of that,” David Kennedy, CEO of SBTi
📈 One stat: Submissions for target validation to the SBTi have increased by 30% year-to-date, following a record number of submissions in 2024
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