Volume 2: Issue 3

In this issue we tackle, in conjunction with recent writings from S&P Global and the World Resources Institute (WRI), how CFOs should set ESG targets using science-based targets (SBTs). In 2018, the Intergovernmental Panel on Climate Change (IPCC) warned that global warming must not exceed 1.5℃ above pre-industrial temperatures to avoid the most catastrophic impacts of climate change. Business has a vital role to play in driving down greenhouse gas (GHG) emissions and building a resilient, zero-emissions economy grounded in science.

 

SBTs for ESG Innovation and investing have become the global standard for credible target setting. Aligning business objectives with scientific evidence on the planet’s ability to tolerate environmental impacts, they provide companies with a clearly defined pathway to future-proof growth by specifying how much and how quickly they need to reduce their GHG emissions.  

 

However, any credible approach to ESG innovation must tie these strategies to general business strategy. SBTs enable companies to engage internal teams with a common data-driven goal and integrate their carbon reduction strategy alongside other business objectives. SBTs show companies how much and how quickly businesses need to reduce their GHG emissions to prevent the worst impacts of climate change, leading them on a clear path towards decarbonization. By guiding companies in science-based target setting, SBTi (outlined below) enables them to tackle climate change while seizing the benefits and boosting their competitiveness in the transition to a net-zero economy.

 

The WRI Framework for The Science Based Targets initiative (SBTi):

Once applied successfully, setting SBT will demonstrate genuine progress for employees, customers and investors. By setting an SBT, companies can publicly demonstrate that they are taking their environmental responsibilities seriously. Companies can communicate to customers, investors and other stakeholders that they are ready to compete and succeed as a business while being at one with nature, and not to the detriment of anyone. This is our goal.

We will be covering this topic (Pillar 2 of our framework) through detailed workshops at the Integrate 2022 Conference this November 29 through December 1 at Fordham University in New York City. Register today to secure your spot.

 

 

 

Harmit is responsible for managing Levi Strauss & Co.'s finance, information technology, strategic sourcing and global business services functions globally. This includes: financial planning and analysis, strategic planning and corporate development, accounting and controls, tax, enterprise risk management, treasury, internal audit, and investor relations. In 2019, Harmit joined the Accounting for Sustainability (A4S) project, helping to establish the U.S. Chapter of the organization and mobilize other prominent financial leaders to promote the business case for sustainability, and in 2021 he was named the U.S. Co-Chair of A4S. He was also named in the Top 20 C-sustainability champions for 2021 by Green Biz.

Nasdaq helps companies of all ESG maturity levels through a unique combination of technology, tools, data, insights, and capital market solutions. Our ESG Advisory Program provides a team of analysts to prioritize and guide your ESG efforts, as well as engage stakeholders to secure ESG capital. Nasdaq's easy-to-use SaaS solutions are purpose-built for ESG and simplify the process of ESG data capture, engagement, oversight, and disclosure. We offer greater peace of mind with risk management via auditability and assurance of data. These offerings are backed by our own experience as a public company, applying and honing these practices over our tenure as a market leader. Learn more about ESG at Nasdaq.