SBTi: Finding the right balance between climate ambition and pragmatism

The debate surrounding the evolving role of the Science Based Targets Initiative (SBTi) is intensifying, particularly with concerns expressed by Norges Bank Investment Management (NBIM), the manager of Norway's sovereign wealth fund. In its response to the consultation on the Net-Zero Standard, NBIM warns against expanding the SBTi's mandate beyond simply verifying climate targets.

NBIM's concerns

NBIM points out that the SBTi plans to incorporate elements such as requirements for transition plans, fossil fuel policies, mandatory public commitments, and enforcement mechanisms with regular validation cycles. According to NBIM, these additions could introduce excessive complexity, making it difficult for many companies to adopt the framework. Furthermore, the strict alignment with the 1.5°C target is seen as a barrier for some companies, particularly in specific sectors or regions.

DT Master Carbon Analysis

At DT Master Carbon, we recognize the importance of setting ambitious and science-based climate targets. However, we share concerns about overly complex standards, which could hamper the commitment of businesses, particularly SMEs.

It is essential to strike a balance between the ambition needed to achieve global climate goals and the pragmatism required to ensure broad and effective adoption of standards. Excessive complexity could discourage some companies, while an overly simplified approach could compromise the integrity of commitments.

At DT Master Carbon, we are committed to supporting companies in this transition, providing solutions tailored to their specific needs, while ensuring compliance with international best practices.

To learn more about our approach, our tools and our projects, do not hesitate to contact us .