Companies adopting science-based climate targets are reaping tangible business benefits across strategy, finance, and stakeholder relations, according to a new report from the Science Based Targets initiative (SBTi).
The report, The Impact of Setting Science-Based Targets on Businesses, draws on data from 171 companies with validated targets and 22 independent studies. It finds that 91% of firms report positive overall business impacts, with improvements spanning strategic cohesion, stakeholder confidence, financial performance, and climate outcomes.
Eight in ten companies said setting SBTi-aligned targets helped sharpen long-term strategy and improve internal alignment.
“Setting SBTi targets has been transformative for Lenovo,” said Ada Chávez, Senior Engineer–Net Zero Lead at Lenovo. “It has strengthened confidence among investors, customers, suppliers, and employees, while aligning our global teams under a clear, credible framework.”
Nearly all companies (95%) reported stronger reputations among stakeholders, while 80% cited improved investor relations. Independent studies referenced in the report found that companies with science-based targets experience lower stock price volatility and maintain stronger margins during periods of market transition.
According to the findings, 92% of companies reported neutral or positive impacts on long-term financial performance, with no evidence of weakened margins or profitability. Meanwhile, 86% of firms reported accelerated decarbonisation following the adoption of science-based targets.
“In 2021, we set our first science-based target,” said Emily Jackson, Senior Vice President of Sustainability at The Economist Group. “In 2024, we exceeded that target, cutting our emissions by 34% from our 2020 base year. Setting a science-based target has helped guide our path from ambition to action.”
The number of companies with near-term science-based targets has doubled, while net-zero commitments have tripled in the past 18 months. Today, the SBTi works with 11,000 businesses across 86 territories, representing over 40% of global market capitalisation.
“These results show that ambitious climate action isn’t just good for the planet—it drives competitiveness, investor confidence, and long-term growth,” said David Kennedy, Chief Executive Officer of the SBTi. “Companies now have a clear business case: acting boldly on climate through robust, science-based frameworks enhances resilience and positions them for future market success.”
