In a landmark development, corporate engagement in climate action reached new heights in 2022, as the Science Based Targets initiative (SBTi) unveiled a remarkable 87% upswing in the number of companies aligning with science-based targets. The initiative's latest report highlights a substantial surge in companies with validated targets—a staggering 1,097, surpassing the cumulative tally of the preceding seven years combined, totalling 1,082.
Landscape view of tea plantations and bamboo forests at sunset, Japan.
Among the standout achievers in this global movement, Japan emerged as a frontrunner, boasting a notable 201 companies that solidified their commitment to science-based targets during 2022. Close on its heels were the UK, with 181 companies, and the US, with 109, signifying a distributed global participation.
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Of particular significance, Asia showcased resounding growth, boasting a 127% increase in companies aligning with science-based targets. In this trajectory, China excelled, witnessing an extraordinary 194% surge in validated companies. Notably, by the end of 2022, corporations setting science-based targets accounted for a remarkable 40% of the NIKKEI index, with Japan's robust commitment setting a benchmark.
This surge in corporate environmental responsibility also extended across sectors. The materials industry marked a monumental 160% leap in companies adopting targets, followed by the services, manufacturing, and infrastructure sectors—collectively constituting over 60% of target-setting entities.
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While progress is evident, there remain sectors demanding accelerated action, notably power generation, biotech, healthcare & pharma, and hospitality—arenas where improvements are urgently needed.
By firmly establishing a strong governance structure, the SBTi laid the foundation for this surge. The appointment of Luiz Amaral as CEO in 2022 marked a pivotal move. In January and April 2023, the organisation welcomed its inaugural Chief Impact Officer and Compliance Director. The unveiling of the Technical Council in March 2023, responsible for endorsing standards and guidance, has further bolstered the initiative's credibility.
As the SBTi's influence and accountability expand, this report underscores the pressing need for businesses to address the mounting climate challenges. The report’s compelling findings serve as a rallying call for timely and impactful corporate action in the face of our planet's ecological crises.
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