The Importance of Science-Based Targets for Businesses

In a world where climate change poses an unprecedented threat to our way of life—and where government leadership has been conspicuously absent—businesses have a fundamental responsibility and a unique opportunity to lead the way toward a more sustainable future.

Setting “science-based” decarbonization goals is not only a step toward combating climate change, but also a path to innovation, sustainability, and long-term economic success.

What do we mean by “science-based” decarbonization targets?

This effort is crucial for limiting global warming to levels considered safe, as established by the scientific research underpinning the Paris Agreement’s objectives: preventing the global average temperature from rising more than 2°C above pre-industrial levels, while making additional efforts to limit that increase to 1.5°C—a threshold that marks the limit for avoiding the most severe impacts of climate change.​

In this context, the Science-Based Targets Initiative (SBTi) is responsible for defining, promoting, evaluating, and independently validating the emissions reduction targets set by companies and organizations.

A target is considered “science-based” if it is aligned with the levels and pace of decarbonization recommended by the international scientific community to limit global warming to 1.5°C.​

SBTi provides clear methodologies and criteria for companies to set these targets, driving the global adoption of ambitious, transparent climate goals that are compatible with a low-carbon economy.

Environmental Impact and Economic Benefits

Corporate decarbonization is of vital importance in the global fight against climate change. Beyond its environmental impact, decarbonization also promises substantial economic benefits.

The transition to clean and efficient technologies not only reduces long-term operating costs but also opens up new market opportunities in a global economy that increasingly values sustainability (Voyko, Sycheva, and Glisin, 2020).

Compliance with Requirements and Regulations

In general, Latin American countries have a legal framework that establishes their commitment to the Paris Agreement, and each country has specific targets that must be met progressively.

Some countries have already defined specific requirements and schemes in this area for reporting and reducing emissions by large companies or those participating in government tenders.

At the same time, other regions have implemented regulations such as the CSRD, which requires companies in the European Union to report their emissions, indirectly affecting Latin American companies that must provide information to those value chains.

In addition, large international corporations have made clear decarbonization commitments that extend to their suppliers.

One example is Walmart’s Gigaton Project, which aimed to reduce or avoid one gigaton—equivalent to one billion metric tons—of greenhouse gas (GHG) emissions in its supply chain by 2030, a goal that was achieved in 2024.

Competitiveness and Corporate Reputation

Companies at the forefront of sustainability and decarbonization enjoy a better reputation and stronger relationships with customers, investors, and the broader community.

This commitment to sustainability can strengthen customer loyalty and attract investments aligned with environmental, social, and governance (ESG) principles.

Furthermore, by investing in innovation and clean technologies, companies not only reduce their carbon footprint but also improve their competitiveness in the market, positioning themselves to thrive in a low-carbon economy (Sofia et al., 2020).

Setting Science-Based Targets

The process of setting effective decarbonization targets begins with a clear quantification of a company’s current emissions. From there, targets must be aligned with scientific recommendations and global goals, such as those of the Paris Agreement.

Developing a roadmap to achieve these goals involves investments in energy efficiency, clean technologies, and, when necessary, carbon offsets.

Now Is the Time to Act

The urgency to act on climate change has never been greater. Companies have the power and the responsibility to lead this shift toward a sustainable future.

Companies that take a proactive approach will not only contribute to a more sustainable world