The Science Based Targets initiative (SBTi), one of the key organizations focused on aligning corporate environmental sustainability action with the global goals of limiting climate change, announced the launch of a major transformation aimed at improving governance, boosting integrity and increasing capacity, including revealing that it is separating its standard-setting and validation activities into distinct entities.

Founded in 2015, SBTi was formed as a collaboration between CDP, World Resources Institute (WRI), the World Wide Fund for Nature (WWF), and the United Nations Global Compact (UNGC), with the goal to establish science-based environmental target setting as a standard corporate practice. The organizations’ key functions include defining and promoting best practice in emissions reductions and net-zero targets in line with climate science, providing technical assistance to companies who set science-based targets, and providing companies with independent assessment and validation of their emissions reduction targets.

SBTi said that the move to separate the standard-setting and target validation entities will help to boost credibility and integrity, and is in line with best practice for assurance bodies. The organization added that it is in the process of strengthening its standard setting processes, following the appointment of an independent technical council.

In addition to the structural transformation, SBTi announced a series of key governance changes, including incorporating the organization in the UK, establishing itself as independent from its founding organizations.

SBTi also announced the appointment of Francesco Starace, formerly CEO of Italian energy giant ENEL, as Chair of the SBTi’s Board of Trustees, and also named former President in Colombia Iván Duque and  Novozymes CEO Ester Baiget as Trustees, with plans to introduce 2 – 3 additional trustees over the next year.

Starace said:

“I am very impressed by the momentum the SBTi has built since its inception. Today, the organization validates thousands of companies’ targets each year. The SBTi plays an important role in encouraging ambitious corporate climate action, which relies on credible target validation and robust standard-setting. I feel honored to join as Chair during this phase of rapid growth.”

SBTi also unveiled plans to increase its target validation capacity in order to meet significant demand growth. The organization saw an increase of 87% last year in the number of companies setting targets.

Luiz Amaral, SBTi CEO said:

“The moment for accelerating corporate climate action is right now. This action must be built on trust as businesses require the highest level of credibility for their targets. This year we have witnessed the three hottest months ever recorded, we must accelerate on all fronts. When I joined last year, my key remit was to build out the SBTi’s governance, while scaling up the organization in the face of enormous demand. I am elated to have an industry leader like Francesco Starace join as our Chair and welcome all of the new appointees on this important journey.”