Glossary entry

Science-Based Target

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Definitions

Option 1

Science-Based Target means a [organisation/corporate/project] target to reduce Greenhouse Gas Emissions that is in line with latest climate science and is necessary to meet the goals of the Paris Agreement/ Paris Agreement Goals.

Option 2

Science-Based Target means the [Company]’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).

Option 3 (model laws)

Science-Based Target means a Greenhouse Gas 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 Agreement Goals.

Application

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

Science-Based Target is used in the following TCLP clauses:

[Gordon’s DDQ] Capital Markets ESG Due Diligence Questionnaire; and 

[Raphael’s Procurement DDQ] Climate Change Due Diligence Questionnaire for Suppliers.