Four reasons companies should have their science-based targets for nature validated
This article was originally published by the Accountability Accelerator, host of the independent validation service for science-based targets for nature. It was written by Paola Delgado Luna, Validation Director at the Accountability Accelerator.
Science-based targets for nature represent a significant opportunity for business. By setting targets to curb their impacts on nature in line with the thresholds determined by science, companies can be on the front foot as the global economy transitions to nature-positive models. They can stay ahead of incoming regulations and capitalize on an estimated $10 trillion a year of business opportunities.
And with over half of global GDP either moderately or highly dependent on nature, finding ways to do business that don’t harm the planet is essential for companies to boost resilience and future-proof growth.
Science-based targets for nature is now a proven and credible concept for companies taking ambitious action for nature, using the methodologies developed by the Science Based Targets Network (SBTN). With the first companies having already publicly adopted targets, and 150 companies preparing to set them, momentum behind target-setting is building.
A critical part of the target-setting process is checking that companies’ targets, and the assessment and prioritization work they must do to prepare them, are in line with SBTN’s methods. We call this step validation – and earlier this year at the Accountability Accelerator we began offering this as a service to companies.
But why is validation such an important part of the process? And why should every company have their science-based targets for nature validated?
Four reasons to validate SBTs for nature
1.) To enable essential checks for SBTN-alignment
SBTN provides detailed technical guidance for companies going through the target-setting process. This includes requirements and recommendations that companies must meet in order to align their actions with Earth’s limits and societal sustainability goals.
The validation process conducted by the Accountability Accelerator provides checks on whether companies are complying with SBTN’s minimum requirements. We review the work that companies do to first assess their impacts on nature (SBTN Step 1), and then prioritize specific locations for target-setting (SBTN Step 2) where those impacts are most material. We look at whether companies have completed those assessment and prioritization exercises accurately, so that the foundation for their targets is solid. This is an essential part of the target-setting process and whether or not companies go on to set targets, it provides them with valuable information into their impacts and dependencies on nature which they can use for decision-making on their nature strategies.
When companies are ready to submit targets for validation (Step 3), we check whether the company is targeting enough of the right actions, in the right places, at the right time across their value chains, in order to meet SBTN’s minimum requirements. These include baseline and data quality requirements to set meaningful and measurable targets, which are the cornerstone of robust corporate nature plans.
For all steps, validators will conduct a desk review of the explanations, justifications and data provided in the company’s submission to ensure the company has completed the work appropriately and provided sufficient evidence and demonstration of their calculations. This archive of validated information and analysis is highly valuable as it can be repurposed to comply with regulatory requirements and for participation in other voluntary frameworks.
2.) To access valuable resources and get expert feedback
We have created a raft of different resources to help companies prepare for the validation process. These include data templates to help companies structure their work and submission forms to gather supporting information. Our submission forms also include additional validation guidance to help companies understand the methods and what they will need to prepare for the validation.
These resources help companies check their progress and coordinate any efforts needed to address gaps to fulfill the minimum validation requirements before submitting for validation. This all helps companies to get as prepared as possible, and maximise the chances of passing the validation before it even begins – so that no effort is wasted. We will be adding more validation guidance over time as we gather learnings and understand where companies require more support.
In addition, our expert validators provide every company with a 90 minute feedback call at the end of the validation. For any companies not passing the validation, this is a valuable opportunity to get specific feedback on where ambition and strategic approach need to be strengthened before they can meet SBTN requirements.
3.) To obtain an independent stamp of approval
Companies passing the validation will be able to claim that their targets are in line with the scientific criteria developed by SBTN, the only body to have developed technical guidance for corporate nature targets, and backed by NGOs and scientists around the world.
These checks are independent and every validator must comply with a strict conflict of interest policy. This means that companies and their stakeholders can be sure that the targets are evaluated with the highest degree of integrity and that the process is impartial.
While each company’s targets will be different and dependent on their specific characteristics, operations and location, the checks create a common standard and ensure that SBTN’s methods are applied consistently across the board. This is vital to enabling stakeholders to compare how companies are acting on nature.
Underpinning the independence and credibility of the validation process is our Integrity Council, composed of experts from around the world in environmental science, corporate sustainability and assurance. The Integrity Council members check that due process has been followed for each validation, and that final results meet the intent and desired outcome of SBTN’s methods.
Once companies have received our stamp of approval on their targets, they are then able to make public claims about their action on nature – which can help boost investor confidence and position them as leaders in the transition to a nature-positive economy.
These claims – which follow approved language developed by SBTN – allow comparability and transparency, which are an important basis for accountability. They also represent companies’ progress in their target-setting journey: for example, companies might start with a business unit with the highest impacts on nature, and within that begin with freshwater targets for their top priority basins. The approved target language and accompanying communications (e.g. in sustainability reports) must always follow the scope of the targets.
4.) To drive action and collaboration
Validated targets show companies what – and how much – action they need to take, by when, and where, in order to prevent harms and reduce their dependencies on nature. The targets provide companies with a clear, formalized and forward-looking framework for action – essential for the critical next step of implementation. And with validated targets in place and publicly disclosed, stakeholders can measure progress against the goals. Accountability and transparency around target implementation is vital to ensuring companies stay on track.
When a company sets a freshwater target in a basin with high levels of scarcity or eutrophication, other companies operating in the basin can leverage the research work conducted to set ambitious targets as well, and collaborate on restorative measures ultimately increasing the positive impact on the state of nature in that basin. For SBTN land targets focused on conservation and regenerative actions, companies can join existing or create new initiatives with other stakeholders to improve the ecological integrity and social conditions in key landscapes. See where companies have set science-based targets for nature here.
Validated targets also give companies the confidence to set more targets. Most companies will need to have a number of different science-based targets for nature – for example, to cover their impacts on land, freshwater and oceans, and within different basins and ecosystems. Through SBTN’s methods companies are supported to find out where their impacts are most material, and begin with target-setting there. Going through the process and obtaining validation of a target is an important step towards even greater ambition.
There is much to do to halt and reverse the degradation of nature and secure a resilient, nature-positive future. Companies have a huge opportunity to be leaders in this transition. Science-based targets for nature ensure companies are playing their role in protecting nature and the validation step – including the public disclosure of targets – is vital for ensuring that corporate action on nature is credible, comparable and robust.
