SBTi Targets Emerging Markets and Heavy Industry to Close Climate Gap

The Science Based Targets initiative identified key structural gaps in its 2021 strategy, including under-representation of non-OECD countries and high-emitting sectors, and announced programmes to address them. Asia accounts for 53% of global emissions but represented only 20% of SBTi approved targets and commitments at that time.

Companies based in non-OECD countries account for fewer than 15% of SBTi companies despite those countries representing 67% of global emissions. To address this imbalance, the SBTi launched the Country Activation Project, which built technical capacity through a Train the Trainers programme gathering nearly 200 participants from 25 countries, and delivered activities reaching more than 3,000 participants. Incubators in India and Mexico supported 42 new African and Asian companies and 36 new Latin American companies in 2021, contributing to an 86% growth in SBTi companies from those regions.

Sector-level gaps are equally significant: retail, transportation services, materials, power generation and infrastructure remain under-represented. The SBTi committed to finalising 1.5 degrees Celsius pathway sector guidelines for cement, steel, buildings and chemicals between 2022 and 2023. For financial institutions, the SBTi noted that portfolio emissions are over 700 times larger than direct emissions on average, according to CDP data, yet fewer than half of CDP-disclosing financial institutions report portfolio emissions aligned with Paris Agreement goals.

The SBTi's 2021-2025 strategy includes development of a measurement, reporting and verification framework to shift its focus from ambition-setting to performance delivery. The initiative also emphasised the role of corporate climate policy advocacy, urging companies to avoid funding trade associations with a track record of weakening climate legislation. Three financial institutions, including South Korea's KB Financial Group, had targets approved in 2021, while 117 additional financial institutions committed to set science-based targets since 2015.

Key figure — 86% growth in SBTi companies in Latin America, Africa and Asia regions in 2021