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The Science Based Targets Initiative (SBTi) continues to track the implementation of net-zero commitments among businesses. In its latest update, 239 companies are marked as "Commitment Removed", including major multinational corporations such as Microsoft, P&G, Unilever, and Walmart. Some of these companies are exemplary in sustainable development, demonstrating the significant challenges in setting net-zero targets for businesses, with Scope 3 potentially being the key.
After submitting their commitment to emission reduction, companies have two years to set specific targets and undergo verification. If this deadline is missed, the company is marked as “Commitment Removed” on the SBTi official website. There are 60% of the companies still have near-term targets but facing obstacles through implementation. SBTi indicates that half of the surveyed companies indicate challenges in setting goals related to Scope 3.
“Relatively few companies are ready to adopt long-term, deep decarbonization targets for their value chain which could be due to too many unknowns in the future and/or doubts about their ability to meet their targets,” SBTi report said.
Failure to meet initial commitments may result in companies being labeled as greenwashing, which can significantly damage their reputation and credibility.
GreenBiz, a major media outlet in the sustainability industry, reported that Microsoft, P&G, Unilever, and Walmart all issued statements clarifying that they will continue to move towards net zero. However, Unilever emphasizes that the discrepancy between SBTi's definition and methodology for net-zero and that of the Intergovernmental Panel on Climate Change (IPCC) led to their inability to meet requirements set in 2021. And a new plan has been proposed.
Established in 2015, SBTi aims to provide businesses with a "science-based" path to reduce greenhouse gas (GHG) emissions in line with the goals of the Paris Agreement with an ambitious target to limit global warming to 1.5°C. As of November 2023, over 2,000 corporate net-zero plans are listed for review by SBTi, with approximately 500 already verified.
