How will SBTi 2.0 impact manufacturers and suppliers?

illuminem summarises for you the essential news of the day, reviewed by our editorial team. Read the full piece on Sustainable Views or enjoy below:

🗞️ Driving the news: The Science Based Targets initiative (SBTi) 2.0 has been released, updating the global framework for corporate emissions reduction
• The new standard gives manufacturers and suppliers increased flexibility in how they set and achieve decarbonization targets, including sector-specific pathways and a broader range of permissible approaches for reducing Scope 1, 2, and 3 emissions

🔭 The context: SBTi 2.0 introduces optionality for companies to select pathways that suit their operations, technologies, and market conditions
• While this flexibility allows tailored solutions, it may complicate benchmarking across companies, as organizations pursuing different methods may not be directly comparable
• The update also emphasizes consistency with the latest climate science and alignment with net-zero goals by mid-century

🌍 Why it matters for the planet: Manufacturers and suppliers account for a significant portion of global emissions, particularly through energy use and supply chain activities
• SBTi 2.0 aims to drive meaningful reductions across entire value chains, encouraging companies to address both direct operations and upstream emissions
• Companies implementation of the framework would directly influence industrial decarbonization and the reduction of global greenhouse gas emissions

⏭️ What’s next: Companies will need to review their emissions inventories, select the most appropriate pathway, and submit targets for approval
• Investors, regulators, and downstream partners will increasingly track compliance, potentially influencing procurement decisions and access to capital
• SBTi 2.0 adoption will likely accelerate over the next 12–24 months as companies prepare to align with updated net-zero expectations

💬 One quote: “The wider range of options in the new standard may make it more difficult to compare the performance of organisations following different pathways,” – Bridget Wise, Secaro

📈 One stat: Scope 3 emissions – The new SBTi 2.0 places increased emphasis on upstream and downstream supply chain emissions for manufacturers and suppliers

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