SBT and TCFD are two acronyms that are here to stay. The new buzz words in sustainability, they are Science-Based Targets and the Task Force on Climate-related Financial Disclosures respectively. Here we explore how these two growing initiatives are connected and what this means in practical terms for businesses and investors.
The SBT initiative (SBTi) was established by the World Resources Institute (WRI), CDP, the World Wide Fund for Nature (WWF) and the UN Global Compact (UNGC). It asks companies to publicly commit to setting carbon emission reduction targets that are in line with climate science. So far, 390 companies across different sectors have committed to do so and over one hundred companies already have their targets validated by the SBTi.