SBTi Report: Nine in Ten Firms Report Positive Impact From Science-Based Targets

An SBTi report analysing 171 companies found nine in ten reported a positive overall experience after adopting science-based targets, with 95% citing reputational benefits and 86% reporting faster emissions reduction. The findings strengthen the business case for Indian companies adopting validated decarbonisation targets.

The Science Based Targets initiative published a report analysing 171 companies that validated their science-based targets for at least two years. Nine in ten surveyed businesses reported a positive overall experience after target adoption. Firms gained competitive advantages across four business performance metrics. An overwhelming 95% of respondents noted positive impact on organisational reputation, eight in ten cited positive effects on long-term vision and strategic alignment, and 71% reported improved resilience against future regulatory changes.

Companies across sectors are affected, with the report contrasting short-term costs against long-term gains. 76% saw positive impact on investor confidence, and 92% reported neutral or positive impact on long-term financial performance, though a minority of 31% reported increased short-term operating costs. On decarbonisation, 90% indicated target-setting positively impacted internal climate ambition, and 86% reported a faster pace of emissions reduction, with academic studies confirming target-setters cut emissions more quickly than non-adopters.

Companies weighing science-based targets should consider the evidence that validated targets drive competitiveness, investor confidence, and accelerated decarbonisation while improving stakeholder confidence and strategic cohesion. They should anticipate possible short-term operating cost increases, reported by 31% of firms, against long-term financial and reputational gains. Businesses should treat SBTs as preparation for the transition to a carbon-constrained economy, monitoring how validated targets improve resilience against future regulatory changes and market shocks.

Key figure — Survey finding: 86% of firms reported a faster pace of emissions reduction after setting science-based targets