What are science-based targets for nature and why should businesses consider setting them?

The Science Based Targets Network, a coalition with over 80 non-profit and professional organizations, unveiled its first guidance to assist companies in establishing science-based targets (SBTs) for nature in 2023. The initiative aims to support businesses to evaluate their environmental footprint and develop goals to mitigate negative impacts on nature, a first step in broadening the sphere of concern beyond the singular focus on climate change.

The latest report from the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) underscores that nature and its ecosystem services are deteriorating globally. Six out of the nine Planetary boundaries are now crossed, increasing the risk of substantial environmental changes that could impede the continued development of our societies. In 2023, the UNDP highlighted that our global economy is threatened by nature degradation, with the loss of ecosystem services potentially reducing global GDP by around $2.7 trillion per year by 2030.

What are science-based targets for nature?

SBTs for nature complement the Science-Based Target initiative (SBTi) which focuses on climate by aligning with existing efforts of companies to reduce greenhouse gas emissions. However, SBTs for nature extend company’s target boundaries to the whole Earth system (i.e., water, land, biodiversity, and ocean) to align with the Kunming-Montreal Biodiversity Framework (GBF) goals adopted in 2022. This framework calls for global action to “halt and reverse biodiversity loss”.

The SBTs for nature guidance is designed for long-term application and emphasizes actionable steps. The framework supports companies in navigating evolving international regulations such as the Corporate Sustainability Reporting Directive (CSRD) and is aligned with other nature-related frameworks like the Taskforce on Nature-related Financial Disclosures (TNFD) and CDP. The SBTs for nature approach has a broader scope and greater precision as it helps companies develop a clear pathway towards action. For example, SBTs for nature incorporate detailed action plans and robust monitoring mechanisms.

Currently, the development and submission of SBTs for nature corporate targets is in pilot phase and technical guidance are already available for land and freshwater. By aligning its strategy with SBTs for nature recommendations, an organization ensures that its approach adheres to the latest scientific guidelines and is grounded in a robust framework from the very beginning.

Enhancing business resilience and competitiveness through the SBTs for nature framework

The increasing loss of nature poses both significant physical and transition risks for businesses, therefore, SBTs for nature provide a clear pathway to enhance resilience and competitiveness and enables companies to play a proactive role in nature restoration. By committing to SBTs for nature, companies can align business strategy with environmental limits and societal sustainability goals. This commitment enhances credibility with stakeholders, showcasing a robust environmental strategy aligned with rigorous standards.

What do companies need to set SBTs for nature and how to get started?

SBTs for nature operate on a comprehensive 5-step process designed to enable companies to understand their impacts and dependencies on nature, set time-bound science-based targets (Steps 1-3), develop robust action plans (Step 4), and monitor and disclose their progress (Step 5).

1. Assess

In the initial phase of their journey, companies will start by understanding their environmental impacts through a sector-level materiality assessment. This assessment identifies hotspots in the company’s value chain to highlight where the company’s impacts on nature are the most significant. Upon completion of this phase, companies will have a list of material pressures by sector and/or associated commodities. This first phase is common to every nature-related recommendation (CSRD, TNFD, CDP, etc).

2. Interpret and Prioritize

Step 2 will enable companies to identify the regions and areas where actions are needed most urgently. Target boundaries will be defined through a site prioritization process, focusing on material pressures and key locations within the value chain. It is recommended to also assess the feasibility of future targets by including other factors related to societal impacts, human rights, and financial aspects. The final output will be a list of prioritized sites for target setting.

3. Measure, Set, and Disclose

This stage involves measuring baselines for prioritized locations and developing targets. Targets must be set on realms that have been identified as material in previous steps. Currently, detailed technical guidance is available for freshwater and land targets. For climate target-setting, companies are encouraged to engage with the Science-Based Targets initiative. Guidance for setting ocean and biodiversity targets is still under development and is expected to be released in 2025. However, aspects of biodiversity are partially addressed within freshwater and land targets.

4. Act

The AR3T framework constitutes the fourth step in the SBTs for nature process, guiding companies in executing their newly set targets through four distinct stages:

1. Avoid future impacts.
2. Reduce negative impacts that cannot be entirely avoided.
3. Restore and Regenerate by initiating efforts for nature to recover from negative impacts such as through revegetation initiatives.
4. Transform by leading to system-wide changes to prevent biodiversity loss.

Guidance for Step 4 is scheduled for release in 2025. However, the technical guidance for freshwater and land provides examples of potential pathways for implementing these targets.

5. Track

Once targets are established, it is essential to track and report progress to ensure accountability in achieving them. SBTs for nature strongly advocates for complete public disclosure of the entire process, starting from materiality assessment in Step 1, and continuing through to the implementation of SBTs for nature in Step 4. Full technical guidance for this stage is anticipated to be released in 2025. This will encompass the expected procedures for measurement, reporting, and verification activities related to SBTs for nature.

How EcoAct can support you with SBTs for nature

EcoAct has been building extensive expertise in supporting companies at various stages of their biodiversity journey. EcoAct is a member of the SBTs for nature corporate engagement program and as such contributes to the development of the framework and has access to content directly from the SBTN.

Get in touch with EcoAct experts to navigate the complexities of SBTs for nature and ensure your organization is aligned with this global framework.