Summary:
The Science Based Targets initiative (SBTi) provides a scientific framework to transform companies’ climate commitments into concrete, measurable targets aligned with the Paris Agreement. Procurement departments are at the heart of this approach, driving and reducing scope 3 emissions, which often account for the majority of a company’s carbon footprint.
Contents:
- What is the Science Based Targets initiative (SBTi)?
- The procurement function: engine of this approach?
- Scope 3: how to build your SBTi approach?
- SBTi: what are the benefits for procurement and the company?
- SBTi validates Manutan’s climate trajectory.
As climate urgency intensifies, organisations worldwide are committing to decarbonisation. To accelerate and lend credibility to their trajectory, many are turning to the Science Based Targets initiative (SBTi). This framework enables companies to set science-based targets for reducing greenhouse gas (GHG) emissions, aligned with climate science. In this dynamic, procurement departments are on the front line when it comes to acting on scope 3 emissions, which often represent the bulk of a company’s carbon footprint.
What is the Science Based Targets initiative (SBTi)?
Launched in 2015, the Science Based Targets initiative is the result of a partnership between the World Resources Institute (WRI), the Carbon Disclosure Project (CDP), the World Wide Fund for Nature (WWF) and the United Nations Global Compact (UNGC).
The SBTi’s ambition is to support companies in reducing their emissions of greenhouse gas in order to limit global warming. More specifically, it helps them define corporate climate targets aligned with climate science and the Paris Agreement (COP 21). As a reminder, this means limiting the average global temperature increase to 1.5°C by the end of the century, compared to pre-industrial levels.
Today, more than 10,000 companies have committed to the SBTi, with science-based targets that have been scientifically validated. Together, they represent more than 40% of global market capitalisation and cover virtually all sectors, regions and company sizes.
The procurement function: engine of this approach?
For a climate trajectory to be validated by the SBTi, companies must cover scopes 1 and 2, as well as scope 3 when this represents more than 40% of total emissions.
This is often the case: according to Global Climate Initiatives, scope 3 accounts for between 50 and 90% of total GHG emissions. This encompasses all emissions across the value chain, and, in particular, those generated by upstream suppliers. This is why procurement departments are at the heart of their company’s decarbonisation strategies.
David Kennedy, CEO of the SBTi, highlights this challenge: “The true force of change is not measured solely by the number of commitments made. It lies in what might be called the ‘climate ripple effect’: when large companies set a course, they open the way for thousands of suppliers, who, in turn, commit to decarbonisation. Yet, whilst scope 3 emissions are, on average, 21 times higher than direct emissions, this collective commitment is essential. And the figures speak for themselves: companies that actively collaborate with their suppliers are nine times more likely to achieve their climate targets. Every company, regardless of size, has the power to initiate change that goes beyond its own boundaries: mobilising your suppliers means turning climate ambition into collective impact, lasting resilience and competitive advantage.”
- Scope 1: direct emissions from sources owned or controlled by the company.
- Scope 2: indirect emissions linked to the production of purchased electricity, heat, steam or cooling.
- Scope 3: all other indirect emissions from sources owned by or under the control of another company.
Scope 3: how to build your SBTi approach?
Reducing scope 3 emissions is one of the main challenges for companies committed to the SBTi. It requires a structured, progressive and, above all, collaborative approach with suppliers and partners.
Establishing an inventory
The first step is to carry out a comprehensive inventory of scope 3 emissions, drawing on the list of categories defined by the GHG Protocol. This exercise makes it possible to identify the most emissions-intensive categories, and thus to prioritise those that offer a credible, measurable reduction lever linked to the company’s activities. Often, purchased goods and services, as well as the use of sold products, account for the bulk of scope 3 emissions.
Scope 3 categories
The GHG Protocol defines 15 categories of scope 3 emission sources:
- Purchased goods and services;
- Capital goods;
- Fuel and energy related activities (not included in scopes 1 or 2);
- Upstream transportation and distribution;
- Waste generated in operations;
- Business travel;
- Employee commuting;
- Upstream leased assets;
- Transportation and distribution of sold products;
- Processing of sold products;
- Use of sold products;
- End-of-life treatment of sold products;
- Downstream leased assets;
- Franchises;
- Investments.
Selecting priority categories
Within the SBTi framework, companies must set targets covering at least 67% of scope 3 emissions in the short term, and 90% in the long term. They must therefore select the most representative categories when setting their reduction targets, in order to meet these thresholds and ensure the credibility of their trajectory.
Targets under review
The SBTi has published a new version (2.0) of its Corporate Net-Zero Standard. Companies may continue to follow the current standard for setting their targets until 31 December 2027. From 1 January 2028, they will be required to apply this new version.
Defining reduction methods and targets
To structure their scope commitments, procurement departments must define targets based on a recent and reliable base year, along with a target year of between 5 and 10 years (short term) or aligned with carbon neutrality by 2050 (long term).
Several types of targets are also available:
- Absolute emissions reduction targets;
Example: reduce absolute scope 3 emissions by 40% by 2030 compared to the 2025 base year.
- Intensity-based reduction targets;
Example: reduce emissions related to the use of sold products by 25%, per functional unit (turnover, volume, etc.) by 2030 compared to the 2025 base year.
- Supplier/customer engagement targets;
Example: ensure that 65% of suppliers, weighted by spend or emissions, have targets validated by the SBTi by 2030.
SBTi: what are the benefits for procurement and the company?
A decarbonisation trajectory through the SBTi is not purely a climate or regulatory matter. For companies, and particularly for procurement departments, it is also a lever for performance, resilience and differentiation.
Better risk management
A highly carbon-intensive value chain is, by nature, more exposed to risk. These risks are both regulatory (evolving reporting and compliance requirements, such as the CSRD), economic (rising and volatile energy prices and raw material costs) and operational (dependency on vulnerable suppliers). Companies that monitor and reduce their scope 3 emissions are better placed to anticipate these risks and secure their supply chains.
Stimulating innovation
The transition towards a low-carbon economy is profoundly transforming markets. Eco-design, the circular economy, extending product life cycles and waste reduction are all becoming strategic priorities. In this context, companies are called upon to rethink their models and collaborate with their suppliers. This fosters the emergence of innovative solutions that benefit the entire value chain.
Meeting stakeholder expectations
Stakeholder expectations around corporate climate commitments are growing. Customers, investors, partners and suppliers all demand concrete, measurable and verifiable commitments. Drawing on internationally recognised frameworks, such as the SBTi or CDP, enables companies to lend credibility to their approach and build trust within their ecosystem.
SBTi validates Manutan’s climate trajectory
The Science Based Targets initiative has validated Manutan’s medium-term climate trajectory, confirming our commitment to achieving net-zero emissions in the long term, in line with the objectives of the Paris Agreement.
Taking 2023 as the base year, we are committed by 2030 to:
- Reducing our absolute scope 1 and 2 emissions by 60%;
- Increasing renewable electricity from 62% to 100%;
- Ensuring that 70% of our suppliers (weighted by their emissions) covering purchased goods and services, as well as upstream/downstream transport and distribution, have SBTi targets;
- Reducing our scope 3 emissions by 42% across the use and end-of-life categories of sold products.
Our circular solutions range
At Manutan, scope 3 represents the vast majority of our carbon footprint. To address the most emissions-intensive categories, we are focusing on the circular economy. We have developed a comprehensive range of solutions for our customers: second-hand products, collect and reuse services, reconditioning as a service, rental…
At Manutan, an eco-friendly product is one that: bears a recognised environmental label (for example, EU Ecolabel, Ecocert, PEFC, etc.), discover all our labels, and/or is manufactured using at least 25% recycled materials, and/or is second-hand (used or refurbished). (Available in Belgium, Czech Republic, Denmark, Sweden, Finland, France, Germany, Hungary, Italy, Netherlands, Norway, Poland, Slovakia, Spain, Switzerland, United Kingdom, Portugal, at the date of content publication)
Nisrene Haddad, CSR Director of the Manutan Group, adds: “It represents both a direction and a pledge, as we move from reporting to impact. Our challenge is a collective one: to engage our customers and suppliers in reducing their footprint, from product selection to logistics, from eco-friendly solutions to reuse. We are advancing with determination to contribute to the global goal of carbon neutrality by 2050”
In short, the SBTi imposes a rigorous framework that structures procurement strategy, guides decisions and redefines supplier relationships around measurable climate criteria. It is a powerful lever for mobilising your value chain towards net zero.
