SBTi Doubles Validated Companies in 2023, Secures Charitable Status and $18M Funding

The Science Based Targets initiative validated 4,204 companies and financial institutions by the end of 2023, doubling the prior year's count, while simultaneously securing UK charitable status and unlocking an $18 million funding pledge from the IKEA Foundation. The SBTi also announced plans to develop sector-specific standards for six high-emitting industries in 2024.

The number of companies with SBTi-validated greenhouse gas reduction targets rose from 2,079 in 2022 to 4,204 by end 2023, a doubling that drove a major operational scale-up. Registration as a charity by the UK Charity Commission enabled the IKEA Foundation's $18 million pledge to be released, matched by an equivalent $18 million from the Bezos Earth Fund. The SBTi also incorporated a subsidiary to house its target validation services. Average validation waiting times were halved despite the volume increase. SBTi Board Chair Francesco Starace was appointed, a former CEO of Italian energy company ENEL.

The SBTi's 2024 standard development priorities included a review of the Corporate Net-Zero Standard and development of a Financial Institutions Net-Zero Standard. Sector-specific standards for oil and gas, electric utilities, automotives, chemicals, insurance and apparel were prioritised. A hybrid model for standard development, involving partnerships with external organisations, was also being piloted, with the potential to accelerate sector-specific standard production significantly from 2025 onward. The addition of compliance and quality managers signals strengthened oversight capacity.

A Validation Council call for members was planned for publication in early 2024 to ensure independence in validation decision-making, separate from standard-setting governance. SBTi CEO Luiz Amaral credited core funders for enabling the build-out and said the organisation had delivered on its promise to grow while establishing independence. IKEA Foundation's CEO Jessica Anderen and Bezos Earth Fund President Andrew Steer both highlighted SBTi's role as the leading corporate climate target-setting institution for companies seeking credibility.

Key figure — $18 million IKEA Foundation funding pledge unlocked alongside $18 million from Bezos Earth Fund