SBTi Reports 102% Surge in Science-Based Targets in 2023

The Science Based Targets initiative published its 2023 Monitoring Report, showing a 102% increase in companies with validated science-based targets compared to 2022. India recorded a 520% rise in organisations setting targets during the year, marking one of the fastest national adoption rates globally.

A total of 4,205 companies and financial institutions had science-based targets validated by the SBTi by end of 2023, up from roughly half that number a year earlier. Of the 2,125 companies setting targets for the first time in 2023, 1,425 were small or medium-sized enterprises, exceeding the cumulative SME total from 2020 to 2022 combined. Japan led all countries for the second consecutive year with 768 validated companies, while financial institutions with targets grew 83%, reaching 86 in total.

The surge reflects accelerating corporate climate ambition ahead of tightening regulatory requirements across major economies. Companies with science-based targets or commitments now cover 39% of global market capitalisation, up from 37% the prior year. India's 520% growth in new target-setters is particularly significant, as the country has historically been under-represented in SBTi participation relative to its share of global emissions. The data suggests that mandatory ESG disclosure frameworks in India are prompting companies to formalise their climate commitments.

Net-zero target adoption accelerated sharply, with 449 organisations setting net-zero targets in 2023 compared to 130 in 2022, a 245% increase. The SBTi is developing a Financial Institutions Net-Zero Standard to bring banks and asset managers into the net-zero framework. Meanwhile, sectors including biotech, health and pharma saw a 222% increase in science-based target adoption. Progress reporting requirements are expected to tighten in the near term as the SBTi builds out its measurement, reporting and verification framework.

Key figure — 520% increase in India organisations setting SBTi targets in 2023 vs 2022