Companies that set science-based climate targets are seeing measurable business and environmental benefits, according to a new global report from the Science Based Targets initiative (SBTi). Based on a survey of 171 companies with validated targets and 22 case studies, the study found that 91% of companies experienced overall positive impacts across strategic cohesion, stakeholder confidence, financial performance, and climate impact [1][2].

The findings highlight how climate ambition is increasingly linked to competitiveness. Nearly all companies (95%) said their reputation improved after adopting science-based targets, while 80% reported strengthened investor relations and 86% saw faster decarbonization progress. Another 92% said their targets had neutral or positive effects on long-term financial performance, with no evidence of negative profitability impacts [1][2].

SBTi CEO David Kennedy said the results confirm a clear business case for science-based action: “Ambitious climate action isn’t just good for the planet—it drives competitiveness, investor confidence, and long-term growth.” He added that such frameworks enhance preparedness for market shifts, regulatory pressure, and stakeholder expectations [2].

In practice, companies have found that validated targets strengthen internal alignment and accelerate emissions reduction. Lenovo, for example, said its SBTi targets have unified global teams and built credibility with investors and employees. Similarly, The Economist Group reported exceeding its first science-based target in 2024, cutting emissions by 34% from 2020 levels, and subsequently raising its ambition to a 43% reduction by 2030 [1].

The number of companies adopting SBTi targets has more than tripled since 2023, with nearly 11,000 organizations, representing 40% of global market capitalization, now having or committing to validated climate goals [1][2].

For executives and investors, the message is clear: setting science-based targets is not just a compliance exercise but a strategic tool for resilience, innovation, and sustainable growth in an evolving global market.

References
[1] ESG Dive. Science-based climate targets boost corporate reputation, decarbonization pace: report. Retrieved from https://www.esgdive.com/news/science-based-climate-targets-initiative-report-boost-corporate-reputation-decarbonization-sbti/804524/

[2] Science Based Targets initiative (SBTi). 9 in 10 companies say science-based targets deliver positive business impact. Retrieved from https://sciencebasedtargets.org/news/9-in-10-companies-say-science-based-targets-deliver-positive-business-impact