Science Based Targets

How Science Based Targets (SBTs) Support Credible Climate Action

A carbon emissions target is considered science-based when it aligns with the scale of emissions reductions required to keep global temperature increases well below 2°C above pre-industrial levels and pursue efforts to limit warming to 1.5°C, in line with the Paris Agreement. Science-based targets build on international scientific consensus and apply established methodologies to determine the emissions reductions required of an organisation, giving businesses a credible and measurable approach to climate action.

For Australian organisations, science-based targets can also support preparation for a changing climate and regulatory landscape, including mandatory climate-related reporting under ASRS and AASB S2, and Australia's 2035 target to reduce emissions by 62–70% below 2005 levels. They can help organisations understand their emissions trajectory, prepare for future carbon-related costs and identify more efficient and innovative ways of operating.

Science-based targets can also provide a measurable foundation for decarbonisation planning, capital allocation and climate transition planning, while helping organisations respond to evolving investor, customer and supply chain expectations.

Setting Science Based Targets That Reflect Your Emissions Profile (Scope 1, 2 and 3)

Decarbonisation is not a simple switch. It can require capital investment, operational and process changes, new technologies, supplier engagement and changes in behaviour.

Effective targets need to reflect an organisation's specific emissions profile across Scope 1, Scope 2 and Scope 3, including its level of influence over different emissions sources. Some sources, such as business travel, can be addressed through direct operational decisions, while others may require collaboration with suppliers or customers, resulting in different pathways and rates of abatement.

Targets can be set using different approaches, and the right choice depends on an organisation's emissions profile, growth trajectory and industry. They are also typically considered across different time horizons: near-term science-based targets covering the next 5–10 years, and longer-term net zero targets charting a pathway to net zero emissions by 2050.

We work with organisations to define ambitious yet achievable targets, using the approach best suited to their circumstances. Through scenario modelling, we assess the impact of planned decarbonisation initiatives, technology adoption and broader changes across the economy. This gives a realistic view of what can be achieved and the actions required, and helps organisations adapt as conditions change, rather than setting targets in isolation.

From Target Development to SBTi Validation

Once targets have been developed, organisations may choose to seek external validation through frameworks such as the Science Based Targets initiative (SBTi).

We guide clients through the SBTi validation process, from target development through to submission. This includes reviewing, challenging and refining key target-setting decisions, including emissions boundaries, base years, target years, target ambition and decarbonisation plans. Where clients prefer, we can also manage the submission and respond to technical queries as they arise.

In the Australian context, this same rigour also supports organisations preparing for ASRS reporting. The detailed review of emissions data, targets and decarbonisation plans provides useful groundwork for climate transition planning and the information required to support climate-related disclosures under AASB S2.

Turning SBTs Into a Decarbonisation Pathway

Setting a target is only the beginning. A target is only useful if an organisation can act on it: understanding how to meet it, tracking progress and adjusting course over time.

Meeting near-term and long-term targets typically requires operational change and capital allocation. Our financial modelling of decarbonisation initiatives quantifies their costs, benefits and emissions impacts, strengthening the business case and helping organisations prioritise actions and allocate capital effectively. This modelling can also feed directly into an organisation's climate transition plan and support reporting under ASRS.

Ultimately, a science-based target gives organisations a measurable trajectory, providing a clear benchmark against which decarbonisation initiatives, emissions reductions and overall progress can be tracked and reported year on year.