Survey Finds 91% of Companies Report Positive Business Impact from Science-Based Targets

A new global report from the Science Based Targets initiative finds that 91% of companies with validated science-based targets report overall positive business impacts, with benefits spanning strategic cohesion, stakeholder confidence and financial performance. The report draws on a survey of 171 companies with validated targets and 22 independent studies.

The report, titled The Impact of Setting Science-Based Targets on Businesses, finds that 80% of surveyed companies report improved strategic cohesion and long-term vision following target adoption. Almost all respondents — 95% — report enhanced reputation with stakeholders, with 80% specifically citing strengthened investor relations. Financial impacts were also predominantly neutral or positive, with 92% of companies reporting no negative effect on long-term financial performance. Independent studies cited in the report found no evidence of negative gross margin or profitability impacts from science-based target adoption.

Science-based targets are also delivering measurable climate outcomes, with 86% of surveyed companies reporting accelerated decarbonisation after target adoption. The Economist Group cited in the report stated it exceeded its first science-based target in 2024, cutting emissions by 34% compared with its 2020 base year, and has since raised its near-term ambition to a 43% reduction by 2030. Independent studies also indicate that companies with science-based targets experience lower stock price volatility and maintain stronger margins during the transition period.

The SBTi reports that the number of companies with near-term targets has doubled and net-zero targets have tripled in just 18 months, with the initiative now working with 11,000 businesses across 86 territories representing over 40% of global market capitalisation. For Indian companies navigating increasing ESG scrutiny from domestic regulators and international investors, the report's findings provide evidence that science-based target adoption is correlated with stronger investor relations, resilience and competitive positioning — arguments that align with SEBI's own push for enhanced sustainability disclosures under the BRSR framework.

Key figure — 34% emissions reduction achieved by The Economist Group against its 2020 base year