As businesses worldwide take greater responsibility for their carbon footprints, small and medium-sized enterprises (SMEs) are increasingly looking for practical pathways to set Science-Based Targets (SBTs). While large corporations have led the way in climate commitments, SMEs play a crucial role in driving sustainability forward. Setting SBTs aligned with the Paris Agreement is essential for SMEs looking to future-proof their operations and contribute to global climate goals. Read more in this blog from our science-based targets expert, Federico Cavallucci.
Why Should SMEs Set Science-Based Targets?
Science-Based Targets provide a clear, measurable approach to reducing greenhouse gas (GHG) emissions. By setting SBTs, SMEs can:
Demonstrate climate leadership and enhance their reputation.
Gain a competitive edge in a sustainability-driven market.
Improve efficiency and reduce costs by optimizing energy consumption.
Ensure compliance with evolving regulatory requirements.
Attract investors, clients, and partners committed to sustainability.
As a leader in an SME , you might be wondering, "Where do I even start?" You're not alone—many businesses are facing the same challenges. The good news is that taking action doesn’t have to be overwhelming. With a step-by-step approach, you can integrate climate goals into your business strategy without disrupting operations.
The Key Steps for SMEs to Set Science-Based Targets
Assess Current Emissions: Conduct a carbon footprint assessment to understand emissions sources across Scope 1, 2, and 3.
Define Ambitious Targets: Align targets with the 1.5°C warming scenario, ensuring significant reductions in direct and indirect emissions.
Develop and Implement Carbon Reduction Measures: Improve energy efficiency, transition to renewable energy, and optimize supply chains.
Monitor Progress & Report Transparently: Regularly track emissions, make data-driven decisions, and report findings to stakeholders.
Integrate Carbon Removals to Meet Net-Zero Goals: Explore carbon removal solutions to address hard-to-abate emissions.
The Role of Carbon Removals in Achieving Net-Zero Targets
The Science-Based Targets initiative (SBTi) emphasizes deep emission reduction as the primary objective for all businesses. However, for most companies, eliminating all emissions within their operations is not always feasible. This is where carbon removals come into play.
SBTi recognizes that some residual emissions will remain, even after ambitious reduction measures. To truly achieve net-zero, SMEs must implement carbon removal strategies to tacklethese unavoidable emissions. By integrating nature-based solutions such as reforestation and soil carbon sequestration, alongside technology-driven removals like direct air capture, SMEs can meet their climate commitments while adhering to the SBTi framework.
Carbon Removal Strategies for SMEs
Investing in Verified Carbon Removal Projects: Partnering with reputable providers ensures real climate impact.
Leveraging Carbon Insetting: Integrating removals within company operations where applicable (e.g., regenerative agriculture practices).
Utilizing Carbon Capture Technologies: Exploring innovative solutions as part of long-term sustainability planning.
How SMEs Can Get Started Today
Taking the first step toward Science-Based Targets might feel daunting, but remember: progress is better than perfection. Many SMEs start small—whether by switching to renewable energy, optimizing logistics, or even engaging employees in sustainability initiatives. Every effort counts!
To begin your Science-Based Targets journey, consider working with trusted partners like First Climate, which provides expert guidance in setting and achieving SBTi-aligned targets. By taking action today, SMEs can secure their place in a low-carbon economy while building a resilient, future-proof business model.
Ready to make a climate impact? Start setting your Science-Based Targets today!
About the Author
Federico Cavallucci is a senior consultant for corporate climate strategies, specializing in carbon accounting and climate target development. With a dedicated focus on the manufacturing and energy sectors, he guides clients through their decarbonization journey, leveraging his expertise to implement sustainable practices and achieve climate goals. Prior to joining First Climate in 2022, Federico served as an environmental specialist at Saipem, where he focused on the company’s decarbonization strategy.
