The effectiveness of science-based targets under the spotlight: A critical view

Despite the increasing awareness that Science-Based Targets (SBTs) can help in the fight against climate change, scarce research has analysed the attributes that can make them more effective. This study examines whether SBT characteristics, including target value, horizon, and measurement method, as well as corporate attributes such as sustainability assurance, impact greenhouse gas (GHG) emissions across different scopes. Drawing on a 2022 dataset of SBT disclosures and corporate information, the results indicate that higher ambition in Scope 1 targets and being headquartered in Europe are significantly associated with lower emission levels, highlighting both the relative manageability of direct emissions and Europe’s leadership in climate action. Furthermore, the impact of sustainability assurance appears to be contingent upon industry context: in non-polluting sectors, assurance is linked to higher emissions, potentially indicative of greenwashing practices, whereas in polluting sectors, it is associated with lower emissions, suggesting a more substantive commitment to emissions reduction. These findings shed light on why some firms progress more effectively than others toward their SBTs, justify potential future SBT policy interventions, and open avenues for further research into assurance types, standards, and the effectiveness of SBTs in carbon accounting.