Know Why SBTN Is The Next Big Shift In Corporate Sustainability Strategy
SBTN helps businesses protect nature and manage risk
SBTN helps businesses protect nature and manage risk
Corporate sustainability is at a tipping point. Alongside the rush of companies to embrace net-zero emission pledges, a second crisis has been emerging: the ongoing breakdown of natural ecosystems and loss of biodiversity that is endangering the underpinnings of world trade.
The wake-up call is stark. Nature and its services contribute more than half of the world’s gross domestic product, some $44 trillion, directly.
Productivity is hampered by water shortage.
Deforestation disrupts supply chains.
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The decline in pollinators threatens productive agriculture.
These aren’t abstract environmental problems; they’re real business risks that have, until now, mostly been left out of classic sustainability models. Above is why the Science Based Targets Network (SBTN) has been a fundamental step-change in how businesses think about what constitutes sustainability strategy.
Explainer: Science Based Targets initiative (SBTN) The SBTN has revolutionised corporate climate action by providing companies with clear, science-based strategies to reduce their greenhouse gas emissions.
But action on climate alone is not enough to safeguard the natural systems upon which economic stability is founded. SBTN addresses this gap by looking at the root causes of nature loss that climate targets do not cover:
Land conversion and ecosystem degradation
Freshwater depletion and water pollution
Marine ecosystem exploitation
The approach is based on Earth system science and planetary boundaries research and ensures that the targets are defined against real ecological limits rather than aspirational goals.
This system of working codifies complex ecological science such that ‘nature positivity’ can be shown in business-relevant terms, enabling companies to find practical routes to align their operations with nature-positive ambitions.
Geffrard, whose timing is explaining why SBTN is taking off. Regulatory standards are quickly evolving to require nature-related disclosures. The Taskforce on Nature-related Financial Disclosures, or TNFD, has written guidance that many jurisdictions are expected to incorporate into mandatory reporting rules.
Financial institutions are also responding. Investors overseeing trillions of dollars in assets, have made it clear they expect this type of nature-related risk and dependency reporting to be global.
SBTN is ahead of this regulation wave. Companies show good risk management by setting nature-based targets and building data systems for TNFD-aligned disclosures. The coordination among the structures provides greater efficiency and interest on compliance with little or no exposure.
|
Aspect |
Traditional Approaches |
SBTN Framework |
|
Scope |
Primarily carbon emissions |
Land, freshwater, oceans, and biodiversity |
|
Target Setting |
Company-defined benchmarks |
Science-aligned planetary boundaries |
|
Validation |
Self-reported or voluntary |
Third-party verification against ecological thresholds |
|
Supply Chain |
Limited upstream accountability |
Full value chain integration required |
|
Outcome Focus |
Emissions reduction |
Ecosystem restoration and nature-positive impact |
This fundamental difference in approach explains why SBTN is gaining traction among companies seeking comprehensive sustainability strategies. The framework shifts accountability from self-determined goals to scientifically validated targets that address the full spectrum of environmental impact
Early adoption numbers underscore business relevance. SBTN has over 150 companies ready to make science-based targets on nature under its Corporate Engagement Program, which covers a market value of over $5.5 trillion.
These aren't fringe players; they contain global giants such as Holcim, GSK, Arla Foods, and Waitrose.
What's driving this uptake? Companies participating report several benefits:
Elevated internal discussions engaging C-suite leadership
Common language for stakeholder collaboration
Strategic insights about supply chain vulnerabilities
Consider the differentiation: a textile firm with cotton supply in water-scarce areas is confronted with completely different nature risks when compared to a technology firm with little to no agricultural risk.
The SBTN methodology explains such differences by its assessment and prioritisation procedures, which ensure that targets represent material business impacts, but not generic commitments.
Perhaps SBTN's most distinctive contribution is its action orientation. While disclosure frameworks help companies understand and report nature-related issues, SBTN provides the roadmap for actual impact reduction.
The five-step process moves systematically from analysis to implementation:
Assess
Prioritise
Set Targets
Act
Track
Companies identify where they exert the greatest pressure on nature, where ecosystems are most vulnerable to that pressure, and how to intervene effectively. The AR3T Action Framework outlines complementary strategies:
Avoid creating new pressure on nature
Reduce existing environmental impacts
Regenerate damaged ecosystems
Restore areas that have been degraded
Transform systems and supply chains fundamentally
Progressive organisations understand that nature-oriented goals are not only beneficial in terms of regulatory compliance and risk reduction.
Ecosystem restoration has the capability of lowering the cost of inputs in terms of water efficiency and healthy soil.
Biodiversity conservation enhances brand image to the ever-aware consumers.
The assessments create supply chain resilience to disruption.
Companies that care about the environment and demonstrate clear environmental commitment attract talented individuals who appreciate the employer's responsibility.
Most importantly, early adopters develop a stronger market position as standards change. Companies validated against SBTN methods gain credibility that separates substantive action from greenwashing.
Having more than 50 science-based targets already proven and 40 more publicly announced validation milestones, the field is gaining momentum toward the expectations of the whole sector.
The development of SBTN as an important model is an indicator of the maturation of corporate sustainability thinking. Nature is no longer disconnected from business processes; business interdependencies are too fundamental, the risks too real, and stakeholder expectations too explicit.
To sustainability leaders, this change requires increased value chain traceability, ecosystem services, and biodiversity metrics. It requires cross-functional integration in procurement, operations, and product development in order to achieve science-based targets of nature.
Businesses that incorporate nature into decision-making today will be in a better place tomorrow. Those who delay risk:
Operational disruption
Regulatory penalties
Investor flight
Competitive disadvantage
SBTN is not a sustainability framework in the conventional sense, but rather the process by which businesses are able to transform ecological boundaries into strategic action, ensuring economic activity operates within planetary boundaries.
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