Can Science-Based Targets Make the Private Sector Paris-Aligned? A Review of the Emerging Evidence

Area of Science:

• Environmental Science
• Climate Policy
• Corporate Sustainability

Background:

• Growing corporate adoption of science-based targets (SBTs) for greenhouse gas emission reduction.
• SBTs aim to align corporate emissions with the Paris Agreement's temperature goals.

Purpose of the Study:

• To review the literature on SBTs.
• To understand the potential of SBTs for aligning corporate emissions with Paris Agreement goals.

Main Methods:

• Literature review of science-based targets.
• Analysis of corporate climate action and emission reduction strategies.

Main Results:

• SBT adoption is accelerating among large companies in high-income countries, with many on track for Scope 1 and 2 targets.
• Gaps exist in distinguishing substantive from symbolic target-setting and understanding achievement pathways.
• Concerns remain regarding emission accounting, target-setting methods, governance, and transparency, potentially leading to insufficient collective reductions.
• Lower diffusion rates in low- and middle-income countries and certain sectors present mainstreaming barriers.

Conclusions:

• SBT adoption correlates with increased corporate climate action.
• Further research is required to explore how SBTs influence a just transition to low-carbon societies.