SBTi 2022 Report Records Surge in Corporate Science-Based Target Adoption

The Science Based Targets initiative's 2022 Monitoring Report found that more companies and financial institutions set science-based targets that year than in the previous seven years combined. The report documents a year in which severe climate impacts — including floods that submerged one-third of Pakistan and European heatwaves linked to over 61,000 deaths — coincided with record corporate uptake of credible climate commitments.

The SBTi Monitoring Report 2022 highlights unprecedented growth in science-based target adoption despite a highly challenging operating environment for businesses. Companies contending with energy cost spikes, inflation and supply chain disruption continued to set and pursue science-based targets at record rates. A cascading effect was also observed, with some companies beginning to require their suppliers to set science-based targets, extending decarbonisation commitments across global value chains. The report frames this as evidence that economies can be restructured at scale through coordinated effort and innovation.

The climate events of 2022 underscored the physical risks that delayed action poses to businesses and communities. Flooding in Pakistan caused more than $15 billion in economic damage and affected 33 million people, while the European heatwave pushed temperatures to 47°C and contributed to over 61,000 deaths. Global mean temperatures in 2022 were 1.15 degrees above pre-industrial levels, continuing an unbroken warming trend. These impacts give urgency to corporate decarbonisation efforts, as science-based targets are designed to align companies with 1.5°C pathways and prevent the most severe climate scenarios.

The report reflects the SBTi's view that financial institutions and companies have a critical role in driving decarbonisation, but that the window for effective action is narrowing rapidly. The supply chain pressure observed in 2022 — where leading companies are demanding science-based commitments from their suppliers — is seen as a structural shift that could embed climate requirements throughout the global economy. The SBTi uses the report's findings to make the case for continued scaling of its validation services and standards frameworks in the coming years.

Key figure — $15 billion economic damage from 2022 Pakistan floods