SBTi Corporate Climate Commitments Surge in 2025

Hello😊 We are GLEC, a specialized company for measuring carbon emissions in the logistics and transportation industry.

The Science Based Targets initiative (SBTi) has emerged as the gold standard for corporate climate action, fundamentally transforming how businesses approach carbon reduction strategies. As we advance through 2025, the momentum behind science-based targets continues to accelerate, with companies across all sectors recognizing the critical importance of aligning their climate commitments with what climate science demands to limit global warming to 1.5°C above pre-industrial levels.

Understanding the SBTi Framework

The Science Based Targets initiative represents a collaborative effort between CDP, the United Nations Global Compact, World Resources Institute (WRI), and the World Wildlife Fund (WWF). This partnership has created a robust framework that enables companies to set emission reduction targets that are consistent with the level of decarbonization required to keep global temperature increase below 1.5°C or well-below 2°C, in line with the Paris Agreement goals.

What sets SBTi apart from other climate initiatives is its rigorous, science-based approach. Rather than allowing companies to set arbitrary sustainability goals, SBTi requires targets to be grounded in climate science and reviewed by independent experts. This ensures that corporate climate commitments are not just aspirational but are actually meaningful contributions to global climate action.

The Logistics Industry's SBTi Journey 🚚

The logistics and transportation sector faces unique challenges in implementing science-based targets due to the complex nature of supply chains and the interconnected web of emissions sources. However, leading logistics companies are increasingly recognizing that SBTi compliance is not just an environmental imperative but also a business necessity.

Transportation accounts for approximately 16% of global greenhouse gas emissions, making it one of the most carbon-intensive sectors. For logistics companies, this presents both a significant responsibility and an opportunity to make substantial environmental impact through science-based target implementation.

Major logistics players are now setting ambitious SBTi-aligned targets that cover not only their direct operations (Scope 1 emissions) but also their electricity consumption (Scope 2) and often their entire value chain (Scope 3). This comprehensive approach is essential because in the logistics industry, Scope 3 emissions typically represent the largest portion of a company's carbon footprint.

Key Components of SBTi Compliance

Successful SBTi implementation requires a systematic approach that begins with comprehensive carbon footprint measurement. Companies must first establish a robust baseline by accurately measuring their current emissions across all relevant scopes. This foundational step is crucial because it determines the starting point from which reduction targets are calculated.

Scope 1 Emissions in logistics typically include direct emissions from company-owned vehicles, facilities, and equipment. These are often the most controllable emissions sources and frequently represent the first area where companies implement reduction strategies.

Scope 2 Emissions encompass indirect emissions from purchased electricity, heating, and cooling. For logistics companies with extensive warehouse and distribution center operations, Scope 2 emissions can be significant and are often addressed through renewable energy procurement and energy efficiency improvements.

Scope 3 Emissions present the greatest challenge and opportunity for logistics companies. These include all other indirect emissions throughout the value chain, such as upstream transportation, employee commuting, business travel, and downstream distribution. In many cases, Scope 3 emissions can account for 70-90% of a logistics company's total carbon footprint.

2025 Trends in SBTi Adoption

The current year has witnessed unprecedented momentum in SBTi adoption across various industries. Several key trends are shaping the landscape :

Increased Regulatory Support : Governments worldwide are implementing policies that either require or strongly incentivize science-based target setting. This regulatory backing is accelerating corporate adoption and creating a more level playing field for businesses committed to climate action.

Supply Chain Requirements : Large corporations are increasingly requiring their suppliers to set science-based targets, creating a cascading effect throughout global supply chains. This trend is particularly relevant for logistics companies that serve as critical links in these supply chains.

Financial Market Integration : Investors and financial institutions are placing greater emphasis on science-based targets as indicators of climate risk management and long-term business viability. This shift is driving capital allocation toward companies with robust SBTi commitments.

Technology Enablement : Advanced carbon accounting technologies and platforms are making it easier for companies to measure, monitor, and report on their progress toward science-based targets. This technological advancement is lowering barriers to entry and improving the accuracy of emissions tracking.

Implementation Challenges and Solutions 🌍

While the benefits of SBTi compliance are clear, implementation presents several challenges that companies must navigate carefully. Data collection and management represent perhaps the most significant hurdle, particularly for logistics companies with complex, multi-modal operations spanning multiple geographies.

The challenge of data quality and availability cannot be overstated. Accurate emissions measurement requires detailed data on fuel consumption, electricity usage, vehicle efficiency, load factors, and numerous other variables. Many companies discover that their existing data collection systems are inadequate for comprehensive carbon accounting.

Another significant challenge is stakeholder engagement across extended supply chains. Logistics companies must often work with hundreds or thousands of suppliers, carriers, and partners to gather the data necessary for comprehensive Scope 3 emissions measurement. This requires significant coordination and often involves building new relationships and communication channels.

However, innovative solutions are emerging to address these challenges. Digital platforms that integrate with existing business systems are streamlining data collection and processing. Artificial intelligence and machine learning technologies are improving the accuracy of emissions calculations and enabling more sophisticated scenario modeling.

The Business Case for SBTi Compliance

Beyond the environmental imperative, science-based targets offer compelling business benefits that are driving adoption across the logistics industry. Companies with SBTi commitments often report improved operational efficiency, reduced costs, and enhanced competitiveness.

Operational Efficiency : The process of measuring and reducing emissions often reveals operational inefficiencies that can be addressed to reduce both environmental impact and costs. For example, route optimization initiatives aimed at reducing fuel consumption can simultaneously improve delivery times and customer satisfaction.

Risk Management : Climate-related risks, including physical risks from extreme weather events and transition risks from policy changes, pose significant threats to logistics operations. SBTi compliance helps companies proactively manage these risks by building resilience into their operations.

Market Access : Many large corporations now require their logistics partners to demonstrate credible climate commitments. SBTi compliance can therefore be a competitive differentiator that opens access to new markets and customers.

Employee Engagement : Younger employees, in particular, are increasingly choosing to work for companies with strong sustainability commitments. SBTi compliance can therefore support talent attraction and retention efforts.

Future Outlook and Emerging Opportunities

As we look toward the remainder of 2025 and beyond, several developments are likely to shape the evolution of science-based targets in the logistics industry. The anticipated release of sectoral pathways for logistics and transportation will provide more specific guidance for companies in these industries, making it easier to set appropriate targets and benchmarks.

The integration of nature-based solutions into SBTi frameworks is also gaining traction. This evolution recognizes that addressing climate change requires not just emissions reduction but also protection and restoration of natural carbon sinks. For logistics companies, this could create new opportunities for offsetting unavoidable emissions through high-quality nature-based projects.

Technology continues to play a crucial role in enabling SBTi compliance. The development of more sophisticated carbon accounting tools, real-time emissions monitoring systems, and predictive analytics platforms is making it easier for companies to track progress and optimize their decarbonization strategies.

Conclusion

The Science Based Targets initiative represents a critical tool for driving meaningful climate action in the logistics and transportation industry. As adoption continues to accelerate in 2025, companies that embrace SBTi compliance will be better positioned to navigate the challenges and opportunities of the low-carbon transition.

For logistics companies, the journey toward science-based targets requires careful planning, robust data systems, and strong stakeholder engagement. However, the benefits – including improved operational efficiency, enhanced competitiveness, and meaningful environmental impact – make this investment worthwhile.

The momentum behind SBTi is undeniable, and the logistics industry has a crucial role to play in achieving global climate goals. By setting and achieving science-based targets, logistics companies can contribute to the urgent decarbonization required to address the climate crisis while building more resilient and sustainable businesses for the future.

#LogisticsESG #CarbonNeutral #SmartLogistics #SustainableLogistics #CarbonMeasurement #GreenLogistics #EnvironmentalRegulation #LogisticsInnovation #CarbonManagement #SustainableManagement For carbon emission measurement consulting and inquiries, please visit GLEC website at https://glec.io/