SBTi announces upgrade to target validation services
September 20th, 2023
The Science Based Targets initiative (SBTi) has revealed it will reform its validation services division in a slew of changes to its operation.
The organisation will separate its target validation services to further boost credibility and integrity for businesses and financial institutions setting science-based targets.
It also announced plans to increase validation capacity to meet demand, as the SBTi predicts over 10,000 companies will have set science-based targets by 2025.
By creating a separate entity for target validation services, SBTi said it was adopting widely recognised best practice for assurance bodies, designed to safeguard its impartiality.
Luiz Amaral, SBTi CEO said: “This year we have witnessed the three hottest months ever recorded, we must accelerate [corporate climate action] on all fronts.
“This action must be built on trust as businesses require the highest level of credibility for their targets.”
It will also create a separate entity for standard setting, strengthening the service by redrawing technical governance and standard-setting processes in line with internationally recognised best practice.
SBTi has also registered as a company limited by guarantee in the UK and has submitted an application to the Charity Commission.
The transformation comes as Francesco Starace was appointed chair of the SBTi board of trustees. Starace is a partner at EQT Infrastructure and formerly the CEO of Italian energy giant ENEL.
Iván Duque and Ester Baiget have been appointed as independent trustees, with more appointments due to follow.
The Institute for Energy Economics and Financial Analysis (IEEFA) recently recommended improvements for the SBTi’s draft standards for financial institutions. It called on the organisation to strengthen standards and develop practical tools and guidance.
Last Updated: 20 September 2023