Glossary entry

Science-Based Targets

Definitions

Contract definitions

Option 1

Science-Based Targets means a [organisation/corporate] target to reduce Greenhouse Gas emissions that is in line with what the latest climate science says is necessary to meet the goals of the Paris Agreement, that is to limit global warming to below 2 degrees Celsius and above-pre-industrial levels, and pursue efforts to limit global warming to 1.5 degrees Celsius.

Option 2

Science-Based Targets means [insert name of organisation]’s target to reduce its Greenhouse Gas emissions in line with latest climate science as validated and published by the Science Based Targets initiative (SBTi).

Model laws definition

Science-Based Targets means a carbon emissions target that is in line with the scale of reductions required to keep global temperature increase below 2°C above pre-industrial temperatures.

Drafting notes

The purpose of a Science-Based Target is to ensure that the relevant organisation’s target is aligned with current climate science and will contribute to a transformational global shift to net zero.

For more information on the Paris Agreement goals, see the definition of Paris Alignment.

Application

Supply chain clauses, national climate laws, project finance documents (e.g. loan, guarantee and recourse agreements, engineering, procurement and construction contracts), policy documents.

Used in Gordon’s Clause [Capital Markets Due Diligence Questionnaire].