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The Road to Science-Based Corporate Net-Zero Target Setting
Sep 23, 2022
What challenges do companies face in setting science-based net-zero targets under the SBTi corporate net-zero standard? This information also could help institutional investors mitigate portfolio exposure to carbon risks.
What challenges do companies face in setting science-based net-zero targets under the Science Based Targets initiative (SBTi)’s corporate net-zero standard? This information also could help institutional investors mitigate portfolio exposure to carbon risks. The SBTi standard offers guidance to companies on setting their targets in line with the 2015 Paris Agreement. In this report, we assessed the challenges that companies may face in setting science-based net-zero targets under the SBTI standard.
Three key challenges in the science-based net-zero target-setting process
* Target year is 2040 for power generation sectors. ** residual emissions mean emissions sources that remain unabated in a specific year of a mitigation scenario. Source: MSCI ESG Research Notes
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Research authors
- Kenji Watanabe, Vice President, MSCI Research
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