Corporates urged to pursue decarbonisation efforts with Science Based Targets initiative

• UN Global Compact Network Sri Lanka and UNDP Sri Lanka workshop shares key insights

United Nations Global Compact Network Sri Lanka in collaboration with the United Nations Development Program (UNDP) Sri Lanka hosted a progressive preliminary workshop, on the Science-Based Targets initiative (SBTi) recently with the exclusive attendance of 48 participating companies from Network Sri Lanka. 

Senior representatives from UN Global Compact Network Sri Lanka’s participant companies, specialising in corporate sustainability and environmental engineering, attended the workshop. UNDP Sri Lanka Team Lead of the Climate and Environment Team Dr. Buddika Hapuarachchi opened the session.

The private sector in Sri Lanka actively supports the country’s 2030 Agenda by helping achieve updated Nationally Determined Contributions (NDCs). Despite being a low carbon emitter, Sri Lanka will benefit from its decarbonisation efforts, particularly by reducing its dependence on imported fossil fuels. This shift strengthens energy security and sustainability while making local industries more resilient. SBTi offers a scientifically grounded pathway for decarbonisation.

The timing of the SBTi workshop aligns with the approaching UNFCCC Conference of Parties 29 (COP 29). As the EU has adopted two new sustainability directives requiring companies to strengthen their climate action, setting validated science-based targets will support companies to comply with these policies.

The Corporate Sustainability Reporting Directive (CSRD), the first directive, requires companies to disclose how they set greenhouse gas (GHG) emissions reduction targets and other climate-related targets to address significant climate impacts, risks, and opportunities. Companies can include targets for renewable energy deployment, energy efficiency, climate adaptation, and risk mitigation. 

Companies must develop these targets using either a sector-specific (sectoral decarbonisation) or cross-sector (contraction) methodology that aligns with emissions reduction pathways limiting global warming to 1.5°C. SBTi actively supports companies by providing sector-specific and cross-sector methodologies that comply with 1.5°C pathways. While CSRD does not yet require science-based targets, future regulations may mandate them. Companies can strengthen their resilience to evolving regulatory requirements by starting the target-setting process now.

The Corporate Sustainability Due Diligence Directive (CSDDD), the second directive, requires companies to create a climate transition plan. This plan must include science-based targets that cover scope 1, 2, and 3 emissions across their entire value chain and align with a 1.5°C pathway. Companies can establish this transition plan by developing science-based targets through SBTi.

Carbon Disclosure Project Transition Accelerator Global Lead Amelie Tan conducted the main session online. She introduced the Science Based Targets initiative (SBTi) and demonstrated how it defines and promotes best practices for emissions reduction, provides technical assistance and expert resources, and independently assesses and validates corporate targets aligned with current climate science.

UN Global Compact Senior Manager of Climate Ambition Accelerator Lucas Ribeiro led a session on “Climate Ambition”. He outlined several strategies to future-proof businesses and highlighted case studies from AstraZeneca, Vodafone, and the H&M Group. 

Panelists explored why decarbonisation is essential for a low carbon economy such as Sri Lanka during a discussion on “Decarbonisation Strategies for Business Transformation and Climate Action”. The panel featured United Nations Industrial Development Organisation Sri Lanka International Senior Specialist, Directorate of Technical Cooperation and Sustainable Industrial Development Dr. Jairo A. Villamil-Diaz, National Cleaner Production Centre CEO Samantha Kumarasena, Sustainable Energy Authority Director of Strategy, National Projects and Research and Development Eng. Chamila Jayasekera, UN Global Network Compact Sri Lanka Board Member Dr. Ravi Fernando, and UNDP Sri Lanka Senior Technical Specialist – Climate and Environment Team Suranga Karavita.

Dr. Villamil-Diaz encouraged companies to view decarbonisation reporting as an opportunity rather than a challenge, stating, “We as individuals but especially as companies all have some responsibility.” Eng. Jayasekera highlighted, “There is a significant gap in energy efficiency considering the age of the equipment and the technology used.” Dr. Fernando emphasised that, “There is no common future in a damaged planet.”

Teejay Lanka PLC and Talawakelle Tea Estates PLC presented an insightful session on local case studies demonstrating the business case for implementing Science-Based Targets. 

Suranga Karavita led a session on Nationally Determined Contributions (NDCs), SBTs, and the value chain, stating that “Companies can use SBTi as a tool to report emissions, which helps the country meet its NDCs.”

The event concluded with a closing session of the Climate Ambition Accelerator 2024, where representatives from Hatch Works Ltd, Hayleys Advantis Ltd.., and A. Baurs & Co. Ltd., shared their experiences.

The workshop achieved several key outcomes: encourage companies to commit to increasing public transparency through greenhouse gas emissions reduction disclosures, corporates received support to set SBTs, and organisations strengthened their decarbonisation efforts by engaging suppliers within their supply chains.

By embracing science-based targets, Sri Lankan companies could position themselves as regional leaders in the transition to a sustainable, low-carbon economy. This proactive stance not only aligns with the global agenda but also strengthens national resilience against energy insecurities and environmental risks.