What is the Science-Based Targets initiative (SBTi)?

The Science-Based Targets initiative (SBTi) is a corporate climate action organization enabling companies and financial institutions to combat the climate crisis. The SBTi is incorporated as a charity, with a subsidiary that hosts target validation services.

Founded in 2014 and significantly expanded in 2023, the Science-Based Targets initiative (SBTi) offers tailored guidance for key sectors such as finance, steel, and FLAG (forest, land, and agriculture). The initiative launched the Corporate Net-Zero Standard in 2021, ensuring company net-zero targets align with achieving global net-zero by 2050. The SBTi’s ambitious goals for 2025 include:

• Covering $20 trillion of the global economy with approved 1.5°C targets.
• Engaging 10,000 companies committed to or setting science-based targets.
• Addressing 5GT of corporate emissions with SBTs.

Originally established by CDP, the UN Global Impact (UNGC), We Mean Business Coalition, World Resources Institute (WRI), and the World Wildlife Fund (WWF), the SBTi now self-funds through corporate foundation donations and validation fees. As of 2025, nearly 11,000 businesses have committed to SBTs, with over 7,000 targets validated, indicating significant global momentum.

In 2023, 53% of companies with science-based target commitments were located in Europe, followed by Asia with 27% representation, and North America with 14% representation. For companies with regulatory pressures, supply chain scrutiny, or investor expectations, this is rapidly becoming table stakes.

We’ve also noted a noticeable a sizeable recent uptick from SBT commitments from the manufacturing and services industries:

Science-based targets: The framework

To help maintain the integrity and effectiveness of targets across different industries, the SBTi requires companies adhere to guidelines, including:

• Align with the latest climate science
• Annual progress reporting required
• Commitments must span 5- to 15-years
• Targets reviewed & re-validated every 5 years
• Mandatory coverage of Scope 1 and 2 emissions
• Scope 3 included if 40% or more of total emissions
• Offsets cannot count towards emission reductions

These guidelines ensure that SBTs are credible, ambitious, and aligned with the latest climate science, providing a standardized approach for companies across different sectors.

Leveling the net-zero playing field

In 2021, the SBTi introduced a new standard to address inconsistencies in net-zero targets and anchor them in climate science. Pledges must now commit to making:

• Deep cuts across value chains (Scopes 1, 2, and 3)
• Near- and long-term targets aiming to halve emissions by 2030 and reach near-zero by 2050 and investments in climate mitigation beyond the value chain

Charting your course to science-based targets

Here’s a quick rundown of the steps to set your own science-based targets:

Carbon reduction strategies

What do common reduction strategies in line with SBTi’s guidance typically look like?

For Scope 1 and 2—where most companies start—we often see actions like fleet and boiler electrification, energy efficiency upgrades, renewable energy certificates or PPAs, and onsite solar. Green leases and LEED-certified buildings can also support progress here.

For Scope 3, it gets more complex—and more collaborative. Companies are updating travel policies, engaging suppliers, optimizing data centers, and implementing flexible work models or waste diversion programs. There’s no one-size-fits-all plan—that’s why modeling and internal alignment are so important.

How Greenplaces supports your SBTs

At Greenplaces, we offer hands-on, white-glove support throughout the entire SBTi process. That includes registering your company, drafting the commitment letter, reviewing your footprint, modeling targets, and submitting through the SBTi portal. We also build reduction roadmaps—forecasting your future emissions and helping you select the decarbonization initiatives that will get you there.

As your all-in-one sustainability platform, Greenplaces centralizes your SBTi efforts.

Now you know your SBTs…

Science-based targets are vital for meaningful corporate climate action, delivering sustainability, innovation, and resilience. The journey to net-zero begins with one decisive step. Watch the full webinar recording to hear more from Alexa Zanolli and sustainability experts.

For personalized support setting your science-based targets, request a demo or connect with our Greenplaces experts today.

The rapid adoption of large language models (LLMs) like ChatGPT has spotlighted concerns around their significant energy consumption and environmental impacts. Thoughtful implementation, however, can help businesses leverage AI responsibly and sustainably.

This blog offers practical steps for developers, product teams, and operational leaders to minimize AI’s carbon footprint—especially during inference, rather than the initial training phase.

AI’s growing energy footprint: Understanding the scale

Mid-sized data centers consume roughly 300,000 gallons of water daily—equivalent to the usage of about 1,000 U.S. households.

The global energy demands of data centers are expected to more than double between 2022 and 2026, driven heavily by increased AI adoption. And by 2030, data centers may represent up to 21% of global electricity demand, dramatically escalating from today’s 1–2%.

1. Track and measure AI usage with granular precision

Precise tracking is essential for reducing emissions. Measuring AI operations at a granular level reveals energy-intensive tasks, uncovering optimization opportunities and driving smarter sustainability decisions.

Key metrics to track:

• Token usage per API call/session
• Model type/version (e.g., GPT-4, Llama 3.1)
• Cloud region or data center location (due to varying emissions intensities)
• Frequency and volume of queries

Why this matters: Processing a million tokens (around $1 of compute) can emit as much carbon as driving a gasoline-powered car up to 20 miles. And generating a single image using AI equals the energy needed to fully charge a smartphone.

2. Design AI workflows for efficiency

Optimizing prompts and workflows reduces unnecessary computing demands. Efficient designs don’t just save money—they significantly reduce your emissions footprint.

Practical recommendations:

• Use smaller AI models for simpler tasks (GPT-3.5 vs. GPT-4)
• Run non-urgent tasks during low-emissions grid periods
• Avoid redundant queries and excessive verbosity
• Implement caching for repeated requests

Real-world impact: Optimizing AI workflows and carefully scheduling workloads can achieve emission reductions of 10–20% for data centers.

3. Strategically test AI models and infrastructure

Regular testing of AI workflows reveals inefficiencies and sustainability opportunities. A structured testing approach enables efficient model selection and lowers carbon emissions.

Testing benefits:

• Confirms output accuracy for sustainability tradeoffs
• Identifies models providing optimal balance of performance and energy use
• Facilitates easier shifts to greener technology as it emerges

Pro tip: Use open-source carbon tracking tools like CodeCarbon or ML CO₂ Calculator. These integrate directly with your systems to provide real-time carbon insights per AI task, enabling granular tracking for reporting and optimization.

4. Prioritize sustainable infrastructure choices

Choosing eco-friendly infrastructure has the most immediate impact on your AI’s emissions profile. Data centers powered by renewable energy or optimized cooling systems drastically reduce emissions.

Infrastructure selection strategies:

• Favor providers with transparent emissions dashboards
• Opt for data centers powered predominantly by renewables (Oregon, Iceland)
• Employ carbon-aware scheduling for compute-intensive tasks

Case in point: Advancements like Microsoft’s cold-plate cooling technology could cut emissions and energy consumption by approximately 15% and reduce water usage by 30–50% compared to traditional air cooling. Learn more.

5. Contextualize AI vs. traditional computing appropriately

Comparisons between LLMs and traditional web searches must be contextualized properly. Though LLMs use more energy per interaction, one comprehensive AI query can often replace multiple traditional searches, potentially offering net efficiency gains.

Factors to consider:

• Multiple traditional searches vs. one complex AI task
• Energy for indexing and browsing conventional searches
• User-side energy consumption in conventional research methods

6. Manage usage growth with governance

Efficiency alone isn’t enough. Due to “Jevons Paradox,” efficiency can inadvertently lead to increased total usage. Organizations must actively manage and govern AI adoption to avoid offsetting sustainability gains.

Actionable steps:

• Clearly communicate expectations for AI usage
• Employ governance frameworks to guide AI deployment
• Foster industry-wide collaborations to enhance sustainable practices

Spotlight: How Photoroom cut 1,000+ metric tons of CO₂

By strategically scheduling workloads and optimizing AI inference, Photoroom achieved impressive carbon savings while boosting performance and reducing costs.

See how they did it.

A sustainable path forward

The environmental impact of AI is considerable, but it doesn’t have to be prohibitive.

Businesses that proactively measure their emissions, implement efficient AI workflows, and strategically select sustainable infrastructure will significantly mitigate AI’s environmental footprint.

Sustainability in AI isn’t just attainable—it’s imperative and beneficial.

The world hits new climate records and challenges

The urgent need for climate action has never been more clear.

2025 is on track to become the second-warmest year on record, following 2024. In April 2025, global average temperatures reached 1.22°C above pre-20th century levels, according to the National Centers for Environmental Information.

Physical evidence of the climate crisis continues to mount. In the first month of 2025, Los Angeles experienced its most destructive wildfires in history during what should have been its rainy season. A recent study from World Weather Attribution concluded that the fires—which resulted in the destruction of over 10,000 homes—were made 35% more likely by climate change. That same report found that highly flammable drought conditions now last 23 more days every year, on average, than in the pre-industrial climate. The takeaway? Drought conditions are increasingly pushing into winter months.

Extreme weather across the globe could cause $145 billion in insured losses this year, according to the Swiss Re Institute. Hurricanes and earthquakes pose the biggest risks, potentially driving insured losses to $300 billion or more in a peak year. The responsibility lies greatly on top greenhouse gas (GHG) emitters—China, the U.S., and India—which contribute 42.6% of total global emissions; while the bottom 100 countries account for just 2.9%.

To limit warming to the 1.5°C threshold, global GHG emissions must be cut 42% by 2030 and 57% by 2035. Failure to adapt to climate change by 2050 would be devastating to the planet and the world economy, risking an annual plunge in global GDP of up to 4.4% according to S&P Global 500.

The stakes are immensely high, but so is the potential for climate action to drive innovation and create a more resilient, sustainable future.

Policy shapes a divided landscape

On the first day of his second term, President Trump signed executive orders dismantling climate regulations and withdrawing from the Paris Agreement, marking a dramatic shift in U.S. climate policy. Within two months of the administration change, the U.S. Securities and Exchange Commission (SEC) halted its defense of the climate-risk disclosure rule in court—a rule previously finalized under the Biden administration.

As major U.S. banks and financial institutions exit climate initiatives, Europe was seemingly on track to strengthen its environmental regulations with the European Green Deal, which included the Corporate Sustainability Reporting Directive (CSRD) that would have required over 3,000 U.S. companies with EU operations to provide climate data. However, the European Commission proposed to scale back the reach and impact of CSRD in a recent omnibus package through reducing thresholds for corporate compliance.

The rollbacks under the new U.S. administration have created a fragmented playing field, placing the burden of progress on state-level actions and corporate leadership. California is at the forefront, having already introduced the Climate Corporate Data Accountability Act (i.e. SB253), which will require more than 5,400 companies that make over $1 billion in annual revenue to disclose their emissions by 2026.

Bills were also recently introduced in New York, New Jersey, and Illinois, marking a growing trend of states taking climate action into their own hands even as federal rollbacks continue.

Corporate sustainability reaches critical mass

As the debate over corporate climate disclosure plays out in both U.S. and global policy, some of the world’s largest corporations are deepening their sustainability commitments. The Global 250 (G250)—representing the world’s largest companies by revenue—demonstrate how sustainability reporting and target-setting have become fundamental to business operations. According to KPMG’s Survey of Sustainability Reporting 2024:

• 95% of G250 companies publish carbon targets, up 15% since 2022
• 56% have designated sustainability leaders, up 11% since 2022
• 41% link sustainability to executive compensation, up 1% since 2022
• 77% adopt the Global Resources Institute’s (GRI) standards for reporting

Among Fortune 500 companies, 45% plan to be net zero by 2050—up from 39% last year and dramatically up from 8% since 2020. Companies are continuing their climate action—albeit more quietly than previous years—even amid federal rollbacks.

Source: Quiet Climate Action: Fortune Global 500 Climate Progress Continues (Climate Impact Partners, 2024)

In particular, alignment up and down the supply chain may help companies to meet their sustainability commitments. GM’s Chief Sustainability Officer, Kristen Siemen, spoke with Greenplaces CEO Alex Lassiter in a recent webinar on how company commitments hinge on supply chain alignment and partnerships to reach ambitious carbon-neutral goals. Watch the on-demand recording here.

AI technology complicates the sustainability landscape

As societies increasingly rely on artificial intelligence (AI) and digital infrastructure, the environmental footprint of our high-tech world expands significantly. In fact, nearly half of executives acknowledge AI has increased their carbon emissions.

It might come as a surprise that on average, one ChatGPT prompt requires nearly 10 times the electricity to process as a standard Google search. Meanwhile, data centers consume vast amounts of both energy and water:

• A single data center uses up to 5 million gallons of water daily for cooling
• On average, 20% to 30% of servers in large data centers are unused or obsolete but still consume electricity
• Deloitte predicts that data centers will consume 2% of global electricity in 2025, equivalent to Sweden’s total energy usage
• Companies’ in-house data centers produce up to 7.6x more carbon than publicly disclosed

Although many tech companies are embracing AI, they are also advancing sustainability strategies to win new customers, satisfy investor requirements, and navigate regulatory compliance.

Natural resources under mounting pressure

The energy and water demands of new technology add to existing resource challenges. Beyond emissions, the interconnected crisis of biodiversity loss and resource depletion threatens both ecosystems and economic stability. With more than half of the world’s gross domestic product (GDP) reliant on nature, environmental protection is a financial imperative.

These are a few of the warning signs:

The world lost 9.1 million acres of primary tropical forest in 2023, equivalent to an area about the size of Oregon. In 2024, the tropics lost a record-breaking 6.7 million hectares of primary rainforest, according to new data from the University of Maryland’s GLAD lab and published via the World Resources Institute’s (WRI) Global Forest Watch platform.

This loss equates to approximately 18 football fields of forest disappearing every minute—almost double the rate recorded in 2023. And while deforestation of the Brazilian Amazon dropped 7% in 2024, degradation of the area rose 497%.

Meanwhile, over 4 billion people currently lack access to safe drinking water—more than double the global estimate made in 2020. By 2030, the global demand for freshwater is expected to exceed supply by 40%. That’s according to a recent report from the Global Commission on the Economics of Water. From the perspective of our shared habitat, nearly a third of species could face extinction by the end of the 21st century if emissions continue to rise at their current rate.

Despite the gloomy headlines, there are some bright spots. Protecting 30% of the planet’s oceans, lands, and freshwaters could safeguard 80% of species and secure 60% of carbon stocks. But because agricultural production is responsible for nearly 90% of global deforestation and biodiversity loss and food production contributes 25-30% of GHG emissions, we must spend $300 billion a year on the global food system by 2030 to make it sustainable.

The challenges of biodiversity loss, deforestation, and resource scarcity threaten both ecosystems and economic stability, underlining the urgent need for action.

Consumer priorities despite environmental and financial stresses

Real climate action is happening in everyday tiny acts. Eighty-five percent of consumers report experiencing the disruptive effects of climate change, driving more individual eco-friendly decisions being made every day. That’s according to PwC’s Voice of the Consumer Survey 2024.

The same survey found that consumers are also signaling their commitment to sustainability at the checkout counter, with 46% reporting that they are opting for goods that are sustainably produced or sourced to mitigate their impact on the environment. Consumers are willing to spend an average of 9.7% more for sustainable products. Sustainable products held 18.5% of the consumer-packaged goods (CPG) market in 2024, the largest single-year increase in the last five years.

The true cost of today’s apparel

The scale of sustainability challenges becomes particularly evident in sectors like apparel, where transformation requires unprecedented coordination across global supply chains. The data reveals the magnitude of the challenge. The fashion industry accounts for as much as 10% of global emissions and 20% of industrial water pollution. A few statistics to consider:

• For every five garments produced, the equivalent of three end up in a landfill or are incinerated every year
• Over 70% of the microplastics in the ocean are attributed to washing clothing made of synthetic fibers
• If unchecked, fashion could use 26% of the carbon budget associated with a 2C global warming limit

While over 160 apparel companies worldwide have made pledges to be net-zero by the year 2050, more than a quarter of the Fashion Pact have failed to set basic climate targets. For context, the Fashion Pact is the largest CEO-led initiative for sustainability in the fashion industry.

And although nearly 650 apparel companies have pledged science-based targets to reduce their carbon footprint, the growth of fast fashion brands is outpacing those commitments. Shein, for example, now holds 50% of the U.S. fast-fashion market share—twice its 2020 position—and its global emissions doubled in 2023 alone.

This is one area where states continue to lead on action. Last year, California passed the Responsible Textile Recovery Act (i.e. SB 707) to address the growing environmental impact of fast-fashion through an extended producer responsibility (EPR) program that would reduce textile waste.

Looking ahead: 2025 and beyond

Double materiality—a consideration of financial impacts and those on people and the environment—is gaining traction as companies worldwide prepare for stricter regulations in the European Union. Consider this:

• Half of G250 companies use double materiality assessments
• 73% of senior legal leaders viewed ESG as major litigation risk in 2024
• 75% of executives believe sustainability drives business results

Making sustainability accessible

Even in this complicated landscape, there are many strategies and opportunities—fueled by innovation and consumer demand—that can help you future-proof your organization. Greenplaces is here to make sustainability easier and more accessible for businesses of all sizes. Our platform empowers you to measure, manage, and communicate your sustainability efforts effectively.

👉 Want to explore the full series? Register here for expert guidance on CDP, EcoVadis, SBTi, and California’s climate laws.

What’s evaluated in an EcoVadis assessment

EcoVadis scores organizations across four key themes: Environment, Labor & Human Rights, Ethics, and Sustainable Procurement. Each theme carries its own weight depending on your industry, company size, and location.

One of the most common challenges? Documentation. While many companies have good sustainability practices in place, they lose points simply for failing to provide adequate proof. Think signed policies, recent reports, verified data—backing up your claims is critical.

Corinne Hanson, VP of Sustainability, and Andrew Rizkallah, Director of Sustainability Reporting, emphasized the need to treat documentation like an audit. Policies should be current (typically from the past 2–3 years), signed by leadership, and publicly available when possible. The more transparent and traceable your evidence, the stronger your score.

How to strengthen your EcoVadis reporting

EcoVadis is gaining momentum—are you ready?

As corporate sustainability expectations continue to tighten and drive actual business ROI, EcoVadis reporting is becoming a gateway to growth. Whether you’re looking to improve your score, respond to client demands, or prepare for regulatory shifts, the key is to treat sustainability as a business function—not a side project.

Want support for preparing your EcoVadis submission? Greenplaces offers expert guidance, documentation reviews, and year-round reporting support to help you build a scorecard that reflects your true impact.

Get instant access to our EcoVadis webinar recording!

Missed our recent EcoVadis session? Sign up for our webinar mini-series and get instant access to the recording, plus you’ll be automatically registered for future live sessions covering SBTi and California regulations. Learn how to choose the right sustainability disclosure framework and stay ahead of key deadlines.

Don’t miss this opportunity to engage with industry pioneers and gain practical insights on building resilience, driving innovation, and achieving meaningful sustainability impact.

Stay tuned—details and RSVP for our special events coming soon! In the meantime, get in touch to learn more about Greenplaces.

Meet us in New York to turn climate ambition into measurable action.

More details coming soon! In the meantime, get in touch to learn more about Greenplaces.

Need help getting B Corp-ready or managing emissions reporting? Request a demo to see how Greenplaces simplifies the process.

What it means for businesses

For companies already engaged in environmental disclosure, the 2025 CDP updates won’t feel seismic. But they do reflect a maturing framework—one where consistency, completeness, and verification are no longer aspirational; they’re expected.

Whether you’re aiming for a better score, preparing to transition out of SME status, or just want to ensure compliance, now’s the time to review:

• Your internal reporting boundaries
• Third-party verification of Scope 1 and 2 (and ideally Scope 3)
• Readiness to disclose across plastics and biodiversity, even if not yet scored
  

And as always, maintaining an accurate carbon inventory—and being ready to tell a coherent story with your data—remains your best defense against reputational and regulatory risk.

Greenplaces’ comprehensive CDP reporting support

Greenplaces offers end-to-end assistance throughout the CDP reporting 2025 cycle:

Data collection and management: Our platform streamlines the gathering of emissions data, utility information, and sustainability metrics required for comprehensive CDP responses.

Module 7 integration: Direct mapping of carbon footprint data from the Greenplaces platform to CDP’s Energy and Emissions module, ensuring consistency and accuracy in environmental performance reporting.

Response development support: Expert guidance for crafting effective responses that address scoring methodology requirements while accurately reflecting your sustainability initiatives.

Gap analysis and strategy enhancement: Identification of disclosure weaknesses and strategic opportunities for program development to improve future CDP performance.

Direct submission assistance: Technical support throughout the submission process, ensuring complete and timely filing through CDP’s integrated portal.