6 Key Benefits of Science-Based Targets for CPG Brands
Setting SBTi targets does not only benefit the planet, but can have major positive influences on your business, too. We share 6 key benefits with you.
The consumer goods industry (CPG) has a unique role to play in driving positive change and mitigating the effects of climate change. As companies in this sector strive to align their strategies with the goals of the Paris Agreement, science-based targets (SBTis) have emerged as a powerful tool to accelerate the transition to a low-carbon economy. In this article we share 6 key insights on how setting SBTi targets is a win-win for companies and planet.
1. Enhancing Brand Reputation
In a world where consumers are increasingly conscious of the environmental impact of their choices, a brand's reputation for sustainability is crucial. Committing to science-based targets can significantly strengthen a company's brand reputation. According to a survey of corporate executives, 79% of respondents cited a strengthened brand reputation as one of the most significant business benefits of setting science-based targets. By aligning their strategies with SBTis, companies demonstrate their commitment to corporate responsibility, meeting the expectations of environmentally conscious consumers. For example, multinational technology company Dell sees setting science-based targets as a way to deliver the level of corporate responsibility their customers expect from them. Electricity operator EDP believes that science-based targets showcase robustness, confidence, and credibility.
2. Boosting Investor Confidence
Sustainability has become a crucial factor for investors when evaluating businesses. Investors are increasingly interested in companies' environmental policies as they seek to secure their investments for the future. The survey found that 52% of executives reported that their commitment to science-based targets had boosted investor confidence in their business. For multinational retailer Tesco, setting a science-based target allowed them to demonstrate their seriousness in tackling climate change to both investors and other stakeholders. This commitment positions them as a forward-thinking, sustainably-minded company, appealing to a new generation of ethical investors.
3. Building Resilience Against Regulation
As countries worldwide work to implement the Paris Agreement and strengthen their commitments, businesses can anticipate increased regulation to curb emissions-intensive activities. Setting science-based targets offers companies increased resilience against upcoming regulations. Over a third (35%) of executives surveyed reported that science-based targets provided them with increased resilience against future regulations. By aligning their business models with the goals of the Paris Agreement, companies can future-proof their operations and demonstrate their commitment to sustainable practices.
4. Driving Innovation
The transition to a low-carbon economy presents numerous opportunities for innovation. Companies that align their strategies with science-based targets are at the forefront of this step-change and are driving innovation within their organizations. Almost two-thirds (63%) of respondents reported that setting science-based targets had already sparked innovation within their companies. More than 50% of executives expected at least half of their products and services to be low-carbon by 2030. For instance, multinational technology company Sony leveraged their science-based target to drive the development of new products, including a plastic called SORPLAS, made up of 99% recycled material. This innovation helps reduce CO2 emissions by nearly 80% during the manufacturing process.
5. Unlocking Bottom Line Savings
Contrary to the perception that sustainability comes at a high cost, companies setting science-based targets are already experiencing bottom-line savings. Almost a third (29%) of executives reported that their ambitious commitment to science-based targets had resulted in cost savings. By setting such targets, companies streamline their operations, increasing efficiency and resilience in a future where resources, particularly those derived from fossil fuels, are becoming scarcer and more expensive. The rising prices of raw materials can make a significant difference between profit and loss. Companies committed to science-based targets are positioning themselves on the right side of this equation, reaping financial benefits while driving sustainability.
6. Gaining a Competitive Edge
Companies that commit to the Science Based Targets initiative gain a competitive advantage in the market. With increased innovation, strengthened investor confidence, reduced regulatory uncertainty, and improved profitability, these companies set themselves apart from their competitors. By embracing science-based targets, they demonstrate their leadership in the low-carbon transition. Being ahead of the curve positions them as industry trailblazers, attracting both environmentally conscious consumers and investors.
We understand that sustainability teams often face challenges in demonstrating the value they bring to the business. Our platform bridges this gap by providing real-time data on the financial impact of sustainability projects. This data-driven approach moves sustainability teams from being perceived as a cost to becoming value drivers across the entire organization. By aligning their strategies with science-based targets and leveraging our platform, companies can transform into software-driven, data-oriented organizations, optimizing their impact on both the environment and their bottom line.
Conclusion
In conclusion, science-based targets have the power to transform the consumer goods industry and unlock a sustainable future. By embracing these targets, companies can enhance their brand reputation, gain investor confidence, build resilience against regulation, drive innovation, unlock bottom-line savings, and gain a competitive edge. Our platform empowers sustainability teams to navigate this transition effectively, providing them with the tools and insights needed to achieve their science-based targets and create a positive impact on the world.
Find out more about how our platform can help your company achieve its science-based targets and pave the way for a sustainable future. Contact us at anna.sandgren@unibloom.world
Sources:
https://sciencebasedtargets.org/companies-taking-action/case-studies/tesco
https://sciencebasedtargets.org/companies-taking-action/case-studies/edp
https://sciencebasedtargets.org/companies-taking-action/case-studies/sony
