The Science Based Targets Network (SBTN) outlined the outcomes of its first corporate pilot for nature targets, with some companies gearing up for adopting their drafts, in a report published on Monday.

The pilot, which started in May 2023 and ran for a year, involved 17 companies, including luxury groups LVMH and Kering, food and beverage firms Bel and Alpro, and supermarket chains Tesco and Carrefour.

Results showed that 15 of the organisations managed to identify how, and in which locations, their operations affect water and land.

The validation process was carried out by an independent body, which was appointed in May for an interim period of up to three years. It approved more than half the draft targets.

“Overall, the results demonstrate that science-based targets for nature offer a credible pathway for companies to take ambitious action for nature,” said SBTN.

Some organisations are already taking steps to adopt their approved draft targets by Jan. 2025, according to the report.

THREE STEPS

Under the pilot, companies had to follow three steps – assessing pressures and impacts on nature, identifying locations where urgent action is needed, and setting targets for land and freshwater ecosystems to address such impacts.

SBTN said 15 companies completed the first two steps and submitted their targets for validation between February and March this year.

Targets included improvements in water quality and quantity, no conversion of natural ecosystems, land footprint reduction, and landscape engagement.

Twelve companies submitted one or more freshwater targets, and 10 had at least one validated, while seven out of nine organisations had their land targets approved.

The freshwater quantity target saw the highest validation rate at 90%, followed by no conversion of natural ecosystems at 88%, land footprint reduction (86%), landscape engagement (52%), and freshwater quality (40%).

“The higher success rates for freshwater quantity targets may be explained by two contributing factors – data availability and quality is better for freshwater withdrawals compared to data on nutrient pollution, and there is more information and local expertise on freshwater quantity models and thresholds,” said the report.

CHALLENGES

For example, in the pilot Kering initially focused on reducing impacts on water quality within the Arno basin in Tuscany, Italy, where most of its tanneries are located.

The company, which committed to reducing water use in this basin by 21% by 2030, faced challenges in setting freshwater quality targets, according to the report.

“[This is] due to SBTN’s current focus on nitrogen and phosphorus pollution alone, coupled with limited water basin level data on nutrient pollution,” it said.

Another firm involved in the pilot, Belgium-headquartered Alpro, struggled to set freshwater quality targets in one of its major supply and production basins in eastern France, where it sources soy.

“Alpro … found that global water models did not identify basins where known freshwater issues existed, and that local water basin models were widely unavailable to replace these,” said the report.

Overall, the report identified the lack of data, particularly at the local scale, as one of the main challenges that need addressing, along with low traceability in supply chains.

As well, accountability often differs along the value chain and sector, limiting the target implementation, said the report.

SBTN also stressed the need for further interoperability with other frameworks as they emerge, including the Taskforce on Nature-related Financial Disclosures (TNFD) and the EU’s Corporate Sustainability Reporting Directive (CSRD).

HIGH POTENTIAL

Despite the challenges, the participating companies largely acknowledged the potential of SBTN targets to drive corporate action on nature.

“We think there’s so much promise and value in these methods to scale nature protection and restoration,” said Kering.

“We now know where to focus our efforts and where action is needed most. SBTN allowed us to move from improvements based on current knowledge to targets that we know help preserve and protect nature,” added Alpro.

SBTN, a global initiative working to establish scientific objectives for nature conservation and restoration, launched a separate corporate pilot in April to develop targets for ocean impacts.

Earlier this month, it put out for consultation draft guidance on the framework, ahead of the full roll out in 2025.

As well, SBTN recently announced it was developing targets for nature focused on cities, with initial guidance launching next year.

Enabling companies to develop high-quality scientific targets for their impacts on nature is poised to raise corporate awareness of the biodiversity crisis, while also driving demand for nature credits.

By Sergio Colombo – sergio@carbon-pulse.com

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