Maarten Andriessen
Senior Consultant
“This really requires some knowledge of climate issues”
Today we’re talking with Maarten Andriessen about what you can expect when you choose the SBTi Corporate Net-Zero Standard as your climate strategy.
Companies can choose to commit to “SBTi Net-Zero.” What exactly is that again?
Under the Paris Climate Agreement, it was agreed globally that the rise in the Earth’s average annual temperature must be limited to 2 degrees Celsius — with 1.5 degrees as the ultimate goal. Scientists have determined this range to be safe. The Science Based Targets Initiative (hereinafter: SBTi) was founded by various influential parties with the goal of helping companies align their climate strategies with the Paris Agreement. The SBTi does this by helping companies calculate the extent to which their CO₂ emissions must be reduced in order to meet the 1.5-degree target by 2050 at the latest. Companies can have their targets validated by the SBTi and develop a reduction pathway in line with the Paris Agreement.
Why would a company want to adopt an SBTi Net-Zero strategy? It does sound quite ambitious.
The question we ask companies is: Do you want to lead the way, or do you want to play catch-up? Governments within the EU are already striving to meet the same level of ambition as the SBTi Net-Zero. Legislation is already in the works, such as CO₂ pricing, the Carbon Border Adjustment Mechanism (CBAM), and the CSRD. Companies will therefore inevitably feel the impact of the choices made by governments (at the EU, Dutch, and local levels). It is therefore a strategic move to align with the SBTi. We’re also seeing that companies are being asked by suppliers, customers, or a parent company to commit to SBTi because they already recognize the need for it. Additionally, having a science-based target provides peace of mind and focus in a world where there are so many different opinions on how a company can best combat climate change. SBTi offers a beacon on the horizon.
What challenges will I face if I choose an SBTi Net-Zero strategy?
The biggest challenge lies in your dependence on supply chain partners. How will you ensure that your suppliers reduce their emissions? For food and agribusinesses, we see that 95% of their emissions fall under Scope 3. The vast majority of these emissions occur in agriculture, sometimes on the other side of the world. In the construction sector, the production of steel and concrete accounts for a large share of the total carbon footprint. The fact that solutions for reducing emissions aren’t yet available everywhere also means you can’t always turn your reduction plan into an action plan. Many developments are already underway, but we still have a long way to go. How do you convince suppliers to switch their cranes to electric power when it costs four times as much? How do you ensure there’s enough green electricity on the construction site?
Another challenge is calculating a carbon footprint and monitoring SBTi targets, which requires quite a bit of climate expertise. At 2BHonest, we’ve established a climate team that closely monitors developments and meets regularly. This helps us continue to assist our clients as effectively as possible with their climate strategy.
What advice does 2BHonest give companies to help them turn their plans into action?
Companies need to stop thinking in isolation and start thinking more at the sector level about the question: How can we work together to ensure that companies undergo a radical transformation? Invite the sector to collaborate with you. When you set an SBTi Net-Zero target, you’re not just saying, “We’re going to reduce our emissions,” but also, “We believe in a world where we do this together, and we therefore ask our customers and suppliers to cooperate.”
In line with this, the 2BHonest climate team will soon begin organizing “Net-Zero Booster Sessions” for companies. In these roundtable discussions, we will share our knowledge and, together with companies already implementing SBTi or those interested in it, tackle the challenges that lie ahead.
Want to learn more about Net-Zero? Maarten is here to help!
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