Science-Based Targets for a Low-Carbon Economy – Drivers and Barriers for Global Companies

Abstract: This thesis addresses the Science-Based Targets initiative (SBTi) in the context of two case studies on HEXPOL AB and Nolato AB. Findings suggest that companies with an advanced approach to sustainability usually have already implemented the SBTi. Therefore, for these companies, implementation of this initiative does not result in major internal or external changes. The interviews suggest that implementing these targets has brought additional benefits for them including improved communication and greater validation of their approach to carbon management. The paper recommends that both HEXPOL AB and Nolato AB take steps to prepare before they commit to the initiative. Each company should decide which type of adopter they want to be, based on the Bell Curve that explains a technology adoption lifecycle. Such decision can contribute to the future pathway of activities and other decisions related to CO2 reduction. Companies location and ability to purchase renewable energy can significantly contribute to the carbon dioxide emissions reduction. As for other findings, the paper expects to see more disclosure and work around the Scope 3 emissions. In addition, more uptake of the SBTi by the companies is projected in the future, contributing to the successful transition to a low-carbon economy and climate change mitigation.