SBTi

MONITORING
REPORT 2023
Looking back at 2023 and moving
forward to 2024 and beyond

PUBLISHED JULY 2024

2 SBTi Monitoring Report > Contents

CONTENTS
Disclaimer.........................................................................................................................................................................3

About the SBTi................................................................................................................................................................4

Our journey................................................................................................................................................................4

Our goals....................................................................................................................................................................4

Our governance.......................................................................................................................................................5

Standard-setting......................................................................................................................................................5

Public consultations and information sessions.........................................................................................5

Our funding...............................................................................................................................................................5

About this report.....................................................................................................................................................5

Scopes 1-3 explained............................................................................................................................................5

Foreword from Luiz Amaral, Chief Executive Officer......................................................................................6

Executive summary.......................................................................................................................................................7

2023 in numbers.............................................................................................................................................................9

2023 key milestones.................................................................................................................................................. 26

Appendix: Data sources and methodology...................................................................................................... 29

3 SBTi Monitoring Report > Contents > Disclaimer

DISCLAIMER
ALTHOUGH REASONABLE CARE HAS BEEN TAKEN IN
THE PREPARATION OF THIS DOCUMENT, THE SCIENCE
BASED TARGETS INITIATIVE (SBTi) AFFIRMS THAT
THE DOCUMENT IS PROVIDED WITHOUT WARRANTY,
EITHER EXPRESSED OR IMPLIED, OF ACCURACY,
COMPLETENESS OR FITNESS FOR PURPOSE.

The SBTi hereby further disclaims any liability, direct All information, opinions and views expressed herein
or indirect, for damages or loss relating to the use of by SBTi are based on its judgment at the time this
this document to the fullest extent permitted by law. document was prepared and is subject to change
without notice due to economic, political, industry, or
The information (including data) contained in this firm-specific factors
document is not intended to constitute or form the
basis of any advice (financial or otherwise). “Science Based Targets initiative” and “SBTi” refer
to the Science Based Targets initiative, a private
The contents of this document may be cited by company registered in England number 14960097
anyone provided that the SBTi is cited as the source and registered as a UK Charity number 1205768.
of the document. Such permission to use does
not represent a license to repackage or resell any © SBTi 2024
of the information included in the document. No
repackaging or reselling of any of the contents of
the document is permitted without the express prior
written permission from the SBTi.
4 SBTi Monitoring Report > Contents > About the SBTi

ABOUT THE SBTi

THE SCIENCE BASED TARGETS INITIATIVE (SBTi) IS A
CORPORATE CLIMATE ACTION ORGANIZATION THAT
ENABLES COMPANIES AND FINANCIAL INSTITUTIONS
WORLDWIDE TO PLAY THEIR PART IN COMBATING
THE CLIMATE CRISIS.
We develop standards, tools and guidance which This means:
allow companies to set greenhouse gas (GHG)
emissions reductions targets in line with what is • $20 trillion of the global economy covered by
needed to keep global heating below catastrophic approved 1.5°C targets.
levels and reach net-zero by 2050 at latest. • 5GT of corporate emissions covered with
science-based targets or commitments.
The SBTi is incorporated as a charity, with a • 10,000 companies committed to or setting
subsidiary which will host our target validation science-based targets.
services. Our founding partners are CDP, the United
Nations Global Compact, the We Mean Business Our first priority is enabling maximum emissions
Coalition, the World Resources Institute (WRI), and reduction, so our sector-specific guidance focuses
the World Wide Fund for Nature (WWF). on the highest-emitting sectors and enabling sectors
like power, maritime and aviation. The target related
to coverage of the global economy will push science-
based targets into large companies in all sectors,
OUR JOURNEY mainstreaming ambitious corporate climate action
and creating scaled demand for the transformation
The SBTi was founded in 2014 with the ambition of of our energy, food, built environment, transport and
encouraging 100 companies to commit to setting mobility, and manufacturing sectors that a net-zero
GHG emissions reduction targets in line with climate world requires. This mainstreaming approach is
science. Since then, our impact and reach have reinforced by our third target of 10,000 companies
grown significantly, and in 2023 we took steps to with science-based targets or commitments, and will
become an independent voluntary standard-setter be achieved in large part through the supply chains
with a separate entity for target validation services. of large companies. We believe this three pronged
approach is a winning strategy to accelerate private
The SBTI incorporated in the UK in June 2023, sector emissions reduction at large scale in line with
and was subsequently recognized as a charity by the requirements of the Paris Agreement.
the Charity Commission for England and Wales.
It created SBTi Services Limited, also in the UK,
to house target validation services, with standard-
setting housed in the charity. Any profits generated
OUR GOVERNANCE
by SBTi Services Limited (that is, from the target
As a newly-formed organization in its own right,
validation fee) will be gifted to the charity. The SBTi
the SBTi introduced a Board of Trustees in 2023.
registered its mark in 2024.
The Board of Trustees has overall responsibility for
the governance of the SBTi. The SBTi’s Executive
Leadership Team is responsible for implementing
OUR GOALS the SBTi’s strategy and for the day-to-day running of
the initiative.
The SBTi’s theory of change is based on the diffusion
of innovation theory. We work with the assumption During 2023, we also strengthened our technical
that 20% of businesses in a particular territory or governance, including with the appointment
sector approximates critical mass, so our goal is to of a Technical Council. This is an independent
reach this 20% threshold by 2025. deliberation and technical decision-making body
5 SBTi Monitoring Report > Contents > About the SBTi

that reviews, approves, and recommends adoption We also host public calls for organizations to
of SBTi standards, and other normative technical participate in the pilots needed when developing
documentation. The Board of Trustees has and adjusting the draft standards. To help inform
delegated independent standards approval to the the public, interested parties and stakeholders, the
Technical Council. SBTi periodically hosts public webinars when issuing
updates to standardized instruments or to build
For more information about the evolution of our capacity around these instruments. These virtual
technical governance, visit our website. sessions are scheduled for various timezones and
recorded to ensure global accessibility and reach.
As the SBTi’s evolution to a standard-setter
continues, the standard-setting division is being
functionally separated from target validation
services, with each having its own staff and
OUR FUNDING
leadership team. SBTi Services has started the
The SBTi is committed to transparency regarding our
process of appointing its own Board, issuing an
funding. We receive funding from several sources,
open call for nominations/applications via the
including charitable trusts and foundations. We also
SBTi website, with applications managed by a
receive project-specific funding. You can find a list of
recruitment and headhunting consultancy. In June
all our funders on our website.
2024 it announced the members of its independent
Validation Council.
The SBTi target validation service charges a service
fee for validating targets set by businesses and
financial institutions in conformity to the SBTi
STANDARD-SETTING standards and related instruments. For eligible
companies that cannot afford fees, the SBTi offers
The SBTi’s standard-setting arm, including a fee discount. More information is available on
its Technical Department, is accountable for our website.
developing and revising SBTi standards, plus
Impact and Engagement and Communications
Departments and a stand-alone Compliance Unit.
The Technical Department houses a Research Unit
ABOUT THIS REPORT
and a Quality Management Unit, who, together with
This report outlines the key trends in companies and
other technical colleagues, work closely with the
financial institutions setting science-based targets
Compliance Unit.
in 2023, together with the SBTi’s major updates and
publications during the year. It uses a number of
The Technical Department convenes other groups
data sources as detailed in Appendix 1. In addition,
of experts with a wide range of skills, expertise and
clarifications regarding analyses and data sources
approaches who support the Department’s work,
are provided throughout via footnotes. Data used in
including by reviewing scientific research papers and
the report have a cut-off date of December 31, 2023.
providing feedback on drafts of the SBTi standards,
guidance or other related instruments. The Technical
Department’s annual workplan is approved by the
Board of Trustees. SCOPES 1-3 EXPLAINED
The The Greenhouse Gas Protocol (GHGP)
Corporate Standard classifies a company’s
PUBLIC CONSULTATIONS AND greenhouse gas (GHG) emissions into three ‘scopes’.
INFORMATION SESSIONS Scope 1 emissions are direct emissions from owned
or controlled sources. Scope 2 emissions are indirect
The SBTi holds regular public consultations emissions from the generation of purchased energy.
about new and significant updates to standards, Scope 3 emissions are all indirect emissions (not
guidance and other standardized instruments. Any included in scope 2) that occur in the value chain of
interested party is encouraged to participate in these the reporting company, including both upstream and
consultations, details of which are made available on downstream emissions.1
the website and in the SBTi newsletter.

1 Source: [Link]/sites/default/files/2022-12/[Link]
6 SBTi Monitoring Report > Contents > Foreword

FOREWORD

DR LUIZ FERNANDO DO AMARAL

CHIEF EXECUTIVE OFFICER,
SCIENCE BASED TARGETS INITIATIVE

Looking back at 2023 the signs of climate change Against this backdrop it can be a struggle to stay
were all around. The State of Global Climate report optimistic and proactive. However, if we are to be
from the World Meteorological Organization states able to sleep at night when we think about the world
that 2023 was the hottest year on record by “a clear we will pass on to our children, it is more important
margin,”2 while records were broken around ocean than ever that we retain our agency, and pursue
heat, sea level rise and glacier retreat. On an average radical change in thought and deed.
day last year, nearly a third of the global ocean was
in a state of marine heatwave3 – wreaking havoc on There are green shoots of promise, from the COP28
everything from marine life to weather patterns. deal making an unprecedented call to “transition
away” from fossil fuels,8 to the UN’s adoption of
The impact of climate change has been seen in the world’s first treaty to protect the high seas and
terms of human deaths, floods, heatwaves, wildfires preserve marine biodiversity.9
and rapidly intensifying tropical cyclones. Up to
half a million indigenous people were affected as The SBTi’s own efforts have also meant that more
waterways on the Amazon river dried up, leaving corporations, financial institutions and SMEs than
communities stranded without access to fuel, food ever before have set science-based targets.
and drinking water.4 Scientists have said the 2023 It is imperative that we continue this work to
summer floods in the Mediterranean which fell so drive corporate decarbonization, with energy,
badly on Greece, Türkiye and Libya, were made up perseverance, and most of all, optimism.
to 50 times more likely by climate change.5
By placing our faith in science we can make a
The changes are no temporary aberration, as it measurable difference, harnessing innovation to
has been the warmest ten-year period on record.6 drive change.
In fact, the UN has warned that the world is now
more likely than not to breach the 1.5°C limit by Please click here to find out more about how you
2027.7 We must now fight harder than ever to keep can be a part of that change.
the 1.5°C ambition alive.

2 [Link]/media/news/climate-change-indicators-reached-record-levels-2023-wmo
3 [Link]/news/media-centre/climate-change-indicators-reached-record-levels-2023-wmo
4 [Link]/up-to-500000-indigenous-people-could-be-affected-by-historic-amazon-river-drought-local-authorities-warn/
5 [Link]/interplay-of-climate-change-exacerbated-rainfall-exposure-and-vulnerability-led-to-widespread-impacts-in-the-mediterranean-region/
6 [Link]/media/news/climate-change-indicators-reached-record-levels-2023-wmo
7 [Link]/environment/2023/jan/16/return-of-el-nino-will-cause-off-the-chart-temperature-rise-climate-crisis
8 [Link]/media/news/climate-change-indicators-reached-record-levels-2023-wmo
9 [Link]/sg/en/content/sg/statement/2023-06-19/secretary-generals-remarks-the-intergov-conference-intl-legally-binding-instrument-under-the-un-convention-the-
law-of-the-sea-the-conservation-and-sustainable-use-of
 ●EXECUTIVE
SUMMARY
GEOGRAPHIC SPREAD OF SCIENCE-BASED TARGETS
Distribution of companies and financial institutions with validated targets by region as
of December 2023.10

Europe

53%
North America

14% Asia

MENA 27%
1%
Africa

Latin America
1% Oceania

2% 2%

10 The share per region of total companies with validated science-based targets
8 SBTi Monitoring Report > Contents > Executive Summary

4,205 520%
The number of companies and For the second year running, Japan The increase in the number of
financial institutions with science- led as the country with the highest organizations in India setting targets
based targets validated by the SBTi number of companies setting science- in 2023 compared to 2022.
by the end of 2023. based targets.

102% 39% 16%

The increase in the number of Companies with science-based targets The market cap of companies with
companies with science based targets or commitments increased from 37% science-based targets or commitments
by the end of 2023 compared to the to 39% of global market cap.11 grew 16%, compared to 11% of all
end of 2022. global market cap growth.

11 Analysis provided courtesy of Oliver Wyman using data from LSEG Datastream
2023 IN
NUMBERS

Photo by Randy Fath on Unsplash

10 SBTi Monitoring Report > Contents > 2023 in numbers

CONTINUED GROWTH IN THE NUMBER

OF COMPANIES SETTING TARGETS

102%
Uptake of science-based targets continued growing on an exponential
trajectory, more than doubling from 2022. 2,080 companies had validated
science-based targets by the end of 2022, with that growing to 4,20512
total in 2023, representing a 102% increase in the total number of
companies and financial institutions with science-based targets. Increase in the total number
2,125 companies set science-based targets for the first time in 2023, of companies and financial
compared to 996 companies in 2022, representing a 113% increase in institutions with science-
the number. 142 companies updated their targets in 2023, so the total based targets in 2023.
number of companies to set or update their targets in the year was 2,267.

ANNUAL CUMULATIVE NUMBER OF COMPANIES WITH

APPROVED TARGETS AND COMMITMENTS, 2015–2023
5000

4,205
Companies with validated targets

4000

3000

2,080
2000

1,083
1000
546
164 315
88
10 32
0
2015 2016 2017 2018 2019 2020 2021 2022 2023
Year

12 In January 2024, it was reported that 4,204 companies had validated targets.
11 SBTi Monitoring Report > Contents > 2023 in numbers

ANNUAL CUMULATIVE NUMBER OF COMPANIES

WITH APPROVED SCIENCE-BASED TARGETS BY
ORGANIZATION TYPE
Financial institutions Small or medium enterprises Companies

2500
Companies with validated science-based targets

2000

1500

1000

500

0
2015 2016 2017 2018 2019 2020 2021 2022 2023
Year

PROPORTION OF GLOBAL MARKET CAPITALIZATION

COVERED BY SCIENCE-BASED TARGETS OR
COMMITMENTS INCREASED

39%
The proportion of the global market cap represented by companies
that had set or committed to set science-based targets increased by
two percentage points between 2022 and 2023. By the end of 2023,
companies with science-based targets or commitments represented
39% of the global economy by market capitalization,13 compared to By the end of 2023,
37% by the end of the previous year.14 In absolute terms, the market cap companies with science-
value of companies with science-based targets increased 16% in 2023 based targets or
from the previous year, in contrast to the global economy which grew by commitments represented
nearly 11%.
39% of the global economy
North America had the biggest market cap coverage of companies by market capitalization.
with science-based targets or commitments to setting them, with $26.6
trillion. Despite 16% growth of SBTi companies in absolute terms there,
market penetration fell from 50% to 48% year on year. Penetration in all
other regions grew between 2-4 percentage points

13 Data could be retrieved from 2,014 publicly available companies, corresponding to 29% out of 6,957 companies listed in the SBTi Target Dashboard (including SMEs)
as of December 31, 2023.
14 This differs slightly from the figure reported in the 2022 Monitoring Report, for which the analysis was performed using Bloomberg Finance L.P. data source.
12 SBTi Monitoring Report > Contents > 2023 in numbers

GLOBAL MARKET CAPITALIZATION OF COMPANIES WITH

COMMITMENTS OR VALIDATED SCIENCE-BASED TARGETS

Global Global Global Global Market Cap Market Cap Growth % %

region Market Cap Market Cap growth SBTi 2022 SBTi 2023 SBTi Penetration Penetration
– Dec 2022 – Dec 2023 (trillion $) (trillion $) 2022- SBTi 2022 SBTi 2023
(trillion $) (trillion $) 2023
Africa $0.52 $0.58 11% $0.09 $0.12 26% 18% 20%
Asia $32.32 $32.50 1% $4.77 $5.74 20% 15% 18%
Europe $19.56 $20.76 6% $11.09 $12.55 13% 57% 60%
Latin $2.07 $2.19 6% $0.36 $0.42 16% 17% 19%
America
and the
Caribbean
MENA $4.11 $4.22 3% $0.06 $0.15 159% 1% 4%
North $45.83 $55.45 21% $22.96 $26.55 16% 50% 48%
America
Oceania $1.76 $1.80 3% $0.35 $0.44 23% 20% 24%
Total $106.17 $117.49 10.67% $39.69 $45.97 16% 37% 39%

MARKET CAPITALIZATION PENETRATION OF

COMPANIES WITH SCIENCE-BASED TARGETS
OR COMMITMENTS VS. GLOBAL DATA
Market cap coverage of companies with validated Global market cap
science-based targets or commitments

2022 37% $106.2

2023 39% $117.5

$0 trillion $50 trillion $100 trillion

13 SBTi Monitoring Report > Contents > 2023 in numbers

JAPAN, UK AND US HAVE THE HIGHEST NUMBERS

OF COMPANIES WITH APPROVED TARGETS

768
Progress in adopting science-based targets was particularly strong in
developed economies.

Japan had the highest number of companies setting targets in 2023 (453),
followed by the United Kingdom (385) and the United States (214). By the Japan had the highest
end of 2023, Japan had the highest number of validated companies of number of validated
any nation (768), overtaking the previous leader the UK (693), and the US companies of any nation
(465), which was previously the country with the second highest number
of companies with targets. (768), overtaking the
previous leader, the
By the end of 2023, there were companies with validated science-based UK (693).
targets in 76 countries, with companies in 14 countries, including
Argentina, Bangladesh, Morocco, Saudi Arabia and Slovakia setting
targets for the first time. Companies in a further 6 countries committed
to setting targets for the first time. These included Gabon, Qatar and
Ukraine.

It is important to acknowledge that the country designation refers to the

location of a company’s headquarters and does not necessarily correlate
with the location of the majority of its operations or supply chain.

NEW COUNTRIES PARTICIPATING

Validated targets

Argentina
Bangladesh
Bolivia
Bulgaria
Croatia
Cyprus
Ecuador
Estonia
Iraq
Liechtenstein
Morocco
Saudi Arabia
Slovakia

Commitments

Ukraine
Gabon
Slovenia
Tanzania
Qatar
Oman
14 SBTi Monitoring Report > Contents > 2023 in numbers

●G20 UPTAKE CONTINUES TO GROW

214%
Growth in the cumulative number of companies with validated science-
based targets was strong in G20 countries, with 214% growth in
India (from 43 to 135 companies), 200% growth in Korea (from 9 to
27 companies), 167% in Mexico (from 6 to 16), 141% growth in China
(from 97 to 234 companies), 136% growth in Türkiye (from 11 to 26 Growth in the cumulative
companies), 131% growth in Japan (from 333 to 768 companies), 110% number of companies
growth in South Africa (from 10 to 21 companies), 109% in Italy (from 44 with validated science-
to 92 companies), 104% growth in the UK (from 340 to 693 companies) based targets increased
and a 3-fold increase in Indonesia from just 1 to 4 companies with
validated targets. Even those G20 countries which showed lower fastest in India with
growth compared with other G20 members, such as Brazil with 82% 214% growth.
growth (from 17 to 31 companies), 65% growth in the USA (from 281
to 465 companies), 65% growth in Canada (from 34 to 56 companies)
and 58% growth in Australia (from 31 to 49 companies) showed strong
growth compared to all countries outside the G20. The low number of
companies in Saudi Arabia (from 0 to 1 company) and Argentina (from 0
to 2 companies) with validated targets indicates that there may be room
to grow in those markets.15

ANNUAL CUMULATIVE NUMBER OF COMPANIES WITH

VALIADATED SCIENCE-BASED TARGETS BY REGION
Africa Europe North America MENA
Asia Latin America Oceania
and the Caribbean
2500
Companies with validated science-based targets

2000

1500

1000

500

0
2015 2016 2017 2018 2019 2020 2021 2022 2023
Year

15 The Russian Federation is not included in this analysis

15 SBTi Monitoring Report > Contents > 2023 in numbers

●SPOTLIGHT ON ASIA

520%
During 2023, Asia was the continent which saw the second greatest
proportional growth in the number of organizations setting science-
based targets. 741 companies headquartered in Asia set a science-
based target in 2023, bringing the total to 1,228 for the region. This
represented a 140% increase in the number of Asian companies India’s growth curve
setting a science-based target compared with 2022. In total 27% of was the steepest with
all companies with targets and commitments are headquartered in a 520% increase in the
Asia (2015-2023). number of companies
Japan had the highest number of companies setting targets worldwide
setting targets in
(453), representing a 124% growth in companies with targets validated. 2023 compared to
India’s growth curve was the steepest with a 520% increase in the the previous year.
number of companies setting targets in 2023 compared to the previous
year. As many companies in India are part of the value chains of
large companies headquartered elsewhere, growth in India can
have a powerful effect on the scope 3 emissions of companies all
over the world.

GROWTH IN THE NUMBER OF ORGANIZATIONS SETTING

SCIENCE-BASED TARGETS BY G20 COUNTRY
Country Growth 2022-2023 Number of companies Number of companies
setting science-based setting science-based
targets in 2023 targets in 2022
India 520% 93 15
Mexico 450% 11 2
Indonesia 200% 3 1
Republic of Korea 171% 19 7
Italy 167% 56 21
Türkiye 167% 16 6
Japan 124% 453 202
United Kingdom 113% 385 181
China 104% 141 69
Australia 100% 20 10
United States of 96% 214 109
America
Canada 92% 25 13
France 91% 101 53
Germany 62% 115 71
South Africa 57% 11 7
Brazil 8% 14 13
Saudi Arabia n/a 1 0
Argentina n/a 2 0
African Union 45% 16 11
European Union 85% 716 388
16 SBTi Monitoring Report > Contents > 2023 in numbers

140% 46% 38%

There was a 140% increase in Organizations in Africa setting Organizations in Latin America and
the number of Asian companies or updating targets in 2023 the Caribbean setting or updating
setting a science-based target increased by 46% compared targets in 2023 increased by 38%
compared to 2022. to 2022, from 11 to 16. compared to 2022, from 24 to 33.

GROWTH RATE OF COMPANIES SETTING TARGETS BY

REGION 2022-2023

MENA 450%

Asia 140%

North 96%
America
Europe 95%

Oceania 86%

Africa 45%

Latin America
and the 38%
Caribbean
0% 100% 200% 300% 400% 500%

2022-2023 growth
17 SBTi Monitoring Report > Contents > 2023 in numbers

●SPOTLIGHT ON MENA
While the number of companies with science-based targets in the
450%
Middle East and North Africa remained low, there were encouraging
signs from the region as the number of companies setting targets
The number of MENA
increased from two in 2022 to 11 in 2023, representing a 450% increase. companies setting targets
increased from two in
2022 to 11 in 2023.

●SPOTLIGHT ON THE GLOBAL SOUTH

46%
There was also strong growth in the number of companies in both
Africa and Latin America setting science-based targets. 16 companies
in Africa and 33 companies in Latin America set targets in 2023, an
increase of 46% and 38% respectively. Despite this strong growth in
the Global South, the majority of companies with science-based targets
continued to be found in countries with more developed economies. 16 companies in Africa
set targets in 2023.
18 SBTi Monitoring Report > Contents > 2023 in numbers

●G20 BREAKDOWN OF COMPANIES WITH

COMMITMENTS AND VALIDATED TARGETS

Validated targets 2015-2022 Validated targets in 2023 Commitments 2015-2022 Commitments in 2023

United Kingdom 1075

United States of America 845

Japan 840

China 514

Germany 417

France 338

India 262

Italy 143

Canada 99

Australia 95

Türkiye 66

Brazil 66

Republic of Korea 58

Mexico 40

Indonesia 33

South Africa 32

Russian Federation 5

Argentina 3

Saudi Arabia 2

African Union 64

European Union 2289

0 500 1000 1500 2000 2500

Number of companies
19 SBTi Monitoring Report > Contents > 2023 in numbers

SBTi PENETRATION IN LEADING EQUITY INDICES

OF THE G7
By the end of 2023, 54% of all companies which had set or committed to set a science-based target were
based in Europe.

% companies with science-based % companies with commitments % companies without vaildated

targets targets or commitments

France CAC 40 73% 15% 13%

Germany DAX 40 58% 13% 30%

UK FTSE 100 55% 12% 33%

G7 indices

USA S&P 500 34% 14% 52%

Japan NIKKEI 225 40% 8% 52%

Italy FTSE MIB 40 30% 13% 58%

Canada S&P/TSX 60 15% 12% 73%

0% 25% 50% 75% 100%

FORBES 2000 PENETRATION

More than a quarter of the Forbes 2000 had validated science-based targets by the end of 2023,
accounting for nearly 40% of its market cap and 27% of its profit.16

Companies without validated targets or commitments Committed SBT validated

100%

75% 60% 49%

64% 63%
77%

50%
11%
11%
10% 10%
25%
10% 39%
29% 27%
26%
14%
0%
Number Sales (%) Profits ($) Assets (%) Market cap (%)

16 Forbes data is updated annually in June.

20 SBTi Monitoring Report > Contents > 2023 in numbers

CORPORATE GROWTH
The growth in the number of large companies (excluding SMEs and FIs)
57%
globally with validated targets continued to increase. 202 to 2022 saw
an increase in the total number of companies (excluding FIs and SMEs)
Increase in the number of
with validated targets of 37% from 865 to 1,187, while there was a 57% large companies globally
increase by the end of 2023, with 1,866 in total. with validated targets by
the end of 2023.

CORPORATE GROWTH BY BUSINESS TYPE

Companies setting science-based targets in 2023 Cumulative number of companies with science-based targets
Number of companies with validated science-based targets

2500

2,253
2000

1,866

1500

1,425

1000

802

500

40 86

0
Corporations SMEs FIs

GREATEST GROWTH FROM SMES

Of the 2,267 companies with targets validated in 2023, 1,425 were
1,425
classed as small or medium-sized enterprises (SMEs). This total was
greater than the cumulative total of SMEs 2020 - 2022, with 2020 being Of the 2,267 companies
the first year in which we introduced an SME route for target validation. with targets validated in
219 of the 1,425 SMEs which set targets in 2023 set net-zero targets. 2023, 1,425 were classed
as small or medium-sized
enterprises.
21 SBTi Monitoring Report > Contents > 2023 in numbers

FINANCIAL INSTITUTION VALIDATIONS GATHER PACE

83%
40 financial institutions set science-based targets in 2023, compared
to 38 in 2022. This brought the total number of financial institutions
with science-based targets to 86, an 83% growth in the number of FIs
with science-based targets. The SBTi is working to encourage greater
uptake of science-based targets by financial institutions because of the
exponential potential they have to drive down GHG emissions across
Growth in the number
entire sectors and economies. Financial institutions awaiting updates to of financial institutions
the Financial Institution Near Term criteria and the Financial Institution with science-based
Net-Zero Standard are permitted to retain their commitments on the targets in 2023.
SBTi website while they wait. Visit our website for the latest information.

STEADY GROWTH OF NET-ZERO TARGETS

20%
2022 was the first full year in which companies could have their targets
validated against the SBTi’s Corporate Net-Zero Standard, which was
introduced in October 2021. However it was in 2023 that we saw
the number of companies setting net-zero targets take off, with 449
organizations setting net-zero targets, compared to 130 in 2022 (245%
growth). Of that 449, 230, or 51%, were corporations and the remaining 20% of companies
49% were SMEs. Financial institutions are not currently able to set net- setting targets in 2023
zero targets, although a Financial Institutions Net-Zero Standard is set net-zero targets.
in development.

20% of companies setting targets in 2023 set net-zero targets, and by

the end of the year 14% of all companies with validated targets set to
date had net-zero targets.

ANNUAL CUMULATIVE NUMBER OF COMPANIES WITH

NET-ZERO TARGETS BY REGION
Africa Europe North America MENA
Asia Latin America Oceania
Number of companies with validated net-zero targets

500

400

300

200

100

0
2021 2022 2023
Year
22 SBTi Monitoring Report > Contents > 2023 in numbers

449 20%
A total of 449 organizations set 20% of companies setting
net-zero targets in 2023, of which science-based targets in 2023
230, or 51%, were classed as set net-zero targets.
corporations and the remaining
49% as SMEs.

COMPANIES SETTING NET-ZERO TARGETS PER QUARTER17

200
Number of companies setting targets in quarter

145
150
131

96
100
77

56
52
50
20
6
0
0
Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023

17 This graph shows the number of companies with validated science-based targets per quarter.
23 SBTi Monitoring Report > Contents > 2023 in numbers

TOTAL NUMBER OF COMPANIES AND SMEs

WITH NET-ZERO TARGETS
SMEs Companies

583
Number of companies with validated net-zero targets

600

400

200
136

0
2021 2022 2023
Year

HALF OF COMPANIES WITH VALIDATED TARGETS

IN SERVICES AND MANUFACTURING INDUSTRIES

58%
As in 2021 and 2022, the services and manufacturing industries saw the
highest numbers of companies setting targets in 2023. With 741 and
568 companies respectively, these industries accounted for 58% of all
companies setting targets in the year.
The services and
The biotech, healthcare and pharma sector saw the greatest manufacturing industries
proportional year on year growth (222%) in the total number of saw the highest numbers of
companies setting targets, from 23 to 74 companies. This is in contrast companies setting targets in
to 2022’s data; between 2021 and 2022 the number of companies in
this sector increased by just 10%, making it the sector with the tenth
2023, accounting for 58% of
highest proportional growth year on year. all companies setting targets.

Conversely, materials went from first to eleventh place in terms of

proportional growth, with a 160% increase in the number of companies
setting targets in 2022 compared with 2021 and a 41% increase from
2022 to 2023 (109 companies and 154 companies respectively).
 24 SBTi Monitoring Report > Contents > 2023 in numbers

INCREASE IN COMPANIES SETTING TARGETS

BY SECTOR
Percentage increase 2022-2023 Percentage increase 2021-2022

Biotech, health
care & pharma

Apparel

Manufacturing

Food, beverage &

agriculture
Transportation
services
Hospitality

Services

Retail

Infrastructure

Power
generation

Materials

0% 50% 100% 150% 200% 250%

25 SBTi Monitoring Report > Contents > 2023 in numbers

TOTAL NUMBER OF COMPANIES BY INDUSTRY

WITH APPROVED TARGETS AS OF DECEMBER 2023

Companies with validated targets 2015-2022 Companies with validated targets in 2023

Services 1075 1359

Manufacturing 845 969

Food, beverage & agriculture 337

Infrastructure 376

Materials 320

Retail 254

Apparel 189

Biotech, health care & pharma 130

Transportation services 142

Hospitality 72

Power generation 56

0 500 1000 1500

Cumulative number of companies

2023 KEY
MILESTONES
27 SBTi Monitoring Report > Contents > 2023 Key Milestones

FEBRUARY
Publication of the Interim 1.5°C Aviation Pathway. This pathway, designed to
harmonize existing sector guidance with the SBTi’s current criteria, allows
aviation companies to meet the minimum ambition levels required by the
criteria, and provides a short-term, accessible option for them to set science-
based net-zero targets.

APRIL
Completion of executive leadership team with the Appointment of a
Compliance Director. On its path to becoming a voluntary standard-setter,
the SBTi created a compliance department which oversees the obligations
of the SBTi, headed up by a Compliance Director who joined from an
independent third-party standards-based certification scheme.

JUNE
First meeting of the Technical Council. The independent Technical Council
oversees technical decision-making at the SBTi, approves standards and
other normative documents as per its Terms of Reference. Minutes of all
meetings are made available on our website.

JUNE
SBTi incorporated as an independent entity in its own right, recognized
by the Charity Commission for England and Wales by year end.
28 SBTi Monitoring Report > Contents > 2023 Key Milestones

JULY
Commitment compliance policy grace period ended. A new policy to mark
expired commitments as removed on the SBTi database had a galvanizing
effect, motivating some to submit targets for validation. Companies have two
years to set targets after making a commitment, after which time their target
is marked as removed, but they are still welcome and encouraged to submit a
target for validation at any time.

SEPTEMBER
Announcement on the SBTi’s transformation as an independent entity,
including plans for a separate validation services entity and the appointment
of a Board of Trustees.

SEPTEMBER
Publication of Steel Guidance. Steel, a heavy emitting sector accounting for
up to 9% of global emissions, had its first science-based decarbonization
target framework published, critical because of how essential steel is for
manufacturing, construction, infrastructure, transportation and renewable
energy technologies including solar panels and wind turbines.

NOVEMBER
Announcement of the change to the SME definition to align with
CSRD in Europe. The change then took place on 1 January.
29 SBTi Monitoring Report > Contents > Appendix 1

APPENDIX: DATA SOURCES AND METHODOLOGY

The analysis included in this report presented in the Methodological approach

form of texts, graphs and tables is based primarily on
data from the following sources: • Annual cumulative number of companies with
science-based targets over the years and total
1. Information on companies with validated number of companies were calculated using
targets and commitments was extracted the snapshots of the SBTi target dashboard
from the SBTi target dashboard as of at the end of each year. Note that removed
December 31, 2023 and December 31, 2022 companies are included in the years their
for growth comparison. targets were active.

2. For the year-on-year analysis, the snapshots • Figures showing the numbers of companies
of SBTi target dashboard (legacy version) were with validated science-based targets in 2023
extracted as a snapshot at the end of each and 2022 include companies setting targets for
year since 2015. the first time and updating their previous targets
in the corresponding year.
3. Industries were defined by assigning each
company sector as reported to the SBTi under • All data points showing commitments data
an industry category from the CDP’s Activity exclude companies with removed commitments.
Classification System (CDP-ACS). Companies that have both committed and set
a target are only counted as a company setting
4. Market capitalization data for companies a target, including the cases when a company
with commitments or validated science-based has an active, more ambitious commitment
targets, as well as estimated global market (e.g. near-term target and net-zero commitment).
capitalization was retrieved using LSEG
Datastream by Oliver Wyman. The data was • Market capitalization coverage from SBTi
extracted for all publicly available companies computed using the sum of SBTi listed
as of December 2023 (2,014 companies companies market capitalization and total
from 2023 SBTi target dashboard) and global market capitalization data as of end of
December 2022 (1,634 companies from December 2022 and end of December 2023.
2022 SBTi target dashboard). SBTi companies’ market capitalization has been
found using companies’ names, ISIN and LEI.
5. Composition of G7 equity indices was
retrieved from public sources with the date
of December 2023.

ACKNOWLEDGEMENTS
The authors would like to thank Oliver Wyman for its
contribution to this report in the form of the Market Cap
analysis, using source data from LSEG Datastream.
30

For general information and technical queries:

info@[Link]
[Link]

@ScienceTargets /science-based-targets