How can companies set science-based targets?

Once a company has assessed its impacts and dependencies on nature, the next step involves setting science-based targets aligned with planetary boundaries and global goals. This process is well advanced for climate where we benefit from a clear consensus on the global 1.5 degree target and its associated carbon budget (even if some challenges yet remain around individual company budget and trajectories as it was recently illustrated by the controversy about the use of carbon credits). For biodiversity and nature, global limits and goals are less clearly defined in terms that companies can actionably follow.

Nevertheless, this doesn't mean companies should hesitate to act. Rapid advancements in the scientific consensus and the availability of preliminary targets provide a foundation for immediate action.

The concept of being nature-positive.

At a very high level, the overarching global objective is relatively straightforward: the world must become 'nature-positive' by 2030 to facilitate the natural recovery needed to return within the planetary biodiversity boundaries by 2050. This global trajectory is commonly referred to as the "bending the curve" trajectory, as shown in Figure 1. To facilitate this global transition, the Global Biodiversity Framework (GBF) was developed and adopted at the COP15 in 2022, setting forth global goals to realign the planet, notably:

• Abiding by the 2050 “Goal A”: namely “the integrity, connectivity and resilience of all ecosystems are maintained, enhanced, or restored, substantially increasing the area of natural ecosystems by 2050”

• And aligning to the 2030 “30x30” intermediate targets: namely 30% of the earth’s land, waters and sea should be conserved through the establishment of protected areas (PAs) and 30% of areas of degraded terrestrial, inland water, and marine and coastal ecosystems should be restored by 2030.

Source: The Definition of Nature Positive - Nature Positive Initiative, 2023

Understanding Science-Based Targets (SBTs).

The Science Based Target Network (SBTN), a global organisation who extends the concept of science-based target setting, which was initially popularized by the Science Based Targets initiative (SBTi) for climate action, launched science-based target guidance for nature: basically, their methodology defines through 5 steps how companies should assess, interpret & prioritize, measure & set targets, act & track their impacts and dependencies on natural ecosystems.

Science-based targets are defined as “measurable, actionable, and time-bound objectives” that align with the planetary boundaries and societal sustainability goals. They address both the drivers of environmental pressures (i.e. the 5 pressures of the IPBES) and the state of nature itself. They should be linked back to the company’s baseline impact measurements.

Translating overall goals into specific targets.

For climate change, it is already clear: SBTI claims that to reach the 1.5 degrees pathway alignment, companies should reduce by 4.2% their GHG emissions (scope 1, 2 & 3) measured in CO2 tons equivalent every year.

Source: Science based Target Network (SBTN) releases roadmap, 2022

It is more complex for biodiversity where we do not have yet an overall global measurable goal. Yet, the framework is evolving rapidly:

• SBTN is structured in 5 pillars: Land, Freshwater, Ocean, Biodiversity and Climate. SBTN already provides draft guidance for realms like Freshwater and Land, on top of Climate (via SBTi), which include target and indicators for direct operations and the upstream value chain.

• Biodiversity has a dedicated pillar which is the less advanced at this stage. This pillar initially aimed to focus on the species dimension of biodiversity (i.e. addressing planetary boundary about extinction risk with targets on protected species and ecosystems). Conversely, the 2nd biodiversity dimension (ecosystem condition) is directly addressed in each of the 3 realms pillars. Discussions are ongoing to merge the biodiversity pillar within each realm.

• Marine realm is still under construction but already has identified 3 main targets.

Source: SBTN targets by realms - Darwin

What the main regulatory reporting frameworks currently say on target settings.

The main reporting frameworks (i.e. CSRD, TNFD) rely, more or less explicitly, on the SBTN or the GBF framework : for instance, the CSRD stipulates that the company needs to explain its objectives in light of "identified ecological thresholds that might be aligned with the Post-2020 GBF, the EU Biodiversity Strategy for 2030, or other ecosystem-related national policies”.

The TNFD mentions that they “strongly encourages organisations to set nature-related targets (...) integrated with global goals under conventions such as the GBF, the Paris Agreement, the High Seas Treaty and the Glasgow Leaders’ Declaration on Forests and Land Use, as well as other goals such as those related to planetary boundaries and the nature-related goals of the UN SDGs”.

Yet, all in all, it's time to translate broad goals into specific, actionable targets. 2030 is coming fast and the topic is complex.

Good news: darwin can leverage its deep biodiversity expertise to help you on this!