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Science Based Targets initiative (SBTi)
Enquiries from Panther-Group customers regarding various sustainability topics in the value chain have significantly increased in recent years, particularly questions concerning the Science Based Targets initiative (SBTi). In the context of the Panther for Planet sustainability strategy, the Panther-Group therefore decided to join the global SBTi, which aims to limit global warming to 1.5 degrees Celsius by 2050 in alignment with the Paris Climate Agreement.
On 17 March 2022, the Panther-Group signed the SBTi Net-Zero Commitment. Subsequently, the group of companies was required to submit its SBTi targets, i.e., the CO2 emission reduction objectives and associated implementation plans, within two years. Accordingly, the Panther-Group has not only set Near-Term Targets and Net-Zero Targets to fulfil SBTi requirements but must also be able to clearly explain the scientifically based measures by which the group of companies intends to achieve these objectives. As the Panther-Group belongs to the 'Forest and Paper Products – Forestry, Timber, Pulp and Paper, Rubber' sector, an additional target for the Forest, Land and Agriculture (FLAG) category is required. The metrics for this are based on the calculations of the Panther-Group's carbon footprint, which have been carried out annually by an external service provider since 2018. This involved defining the base year 2019, the most recent year at the time of signing, 2022 as well as the target year for near-term, net zero and FLAG targets. These are based on the SBTi criteria for Scope 1, Scope 2 and Scope 3. Target years defined by the Group are 2028 for Near-Term and 2040 for Net-Zero. Furthermore, the target years for the FLAG short-term target were set at 2028 and the FLAG long-term target at 2040.
What distinguishes these targets from each other?
Near-Term Targets:
Measures that companies undertake to reduce their emissions within the next 5 to 10 years.
Net-Zero Targets:
Measures that companies must achieve by 2050 at the latest (for the Panther Group by 2040), representing net-zero emissions for industrial operations.
FLAG Targets:
Companies in the sectors of forest and paper products, food production (agricultural or animal origin), food and beverage manufacturing, food and staple food retail and tobacco, as well as other companies with FLAG-related emissions accounting for at least 20% of total emissions in Scope 1, 2 and 3, are obliged to set short- and long-term reduction targets. These must also meet SBTi requirements and limit global warming to 1.5°C. This also includes a 'No-Deforestation Commitment' by the company, which prohibits deforestation.
The SBTi targets and FLAG targets must be achieved independently of each other.
Regarding the CO2 reduction requirements for Near-Term Targets, the Panther-Group must reduce its absolute CO2 footprint by 58.5% in Scope 1 and Scope 2 between 2019 and 2028 to meet the SBTi requirements. Moreover, at least 84% of the Panther-Group's suppliers (determined by total emissions) must be persuaded to set their own CO2 reduction target or Science Based Target by 2028 at the latest, enabling the Group to achieve its own Scope 3 target. Regarding the FLAG short-term target, the Panther-Group must reduce CO2 emissions from the base year 2019 to the target year 2028 by 3.03% annually, corresponding to a total reduction of 27.3%. In comparison, the reduction of the carbon footprint for the Net-Zero target for Scope 1 and Scope 2 amounts to a total of 90% by the year 2040 relative to the base year 2019. Similarly, the Group must achieve a 90% reduction in Scope 3 values and a 72% reduction in FLAG emissions by 2040 to meet the Net-Zero requirements of SBTi.
The SBTi validation process for the Panther-Group was successfully completed on 21 October 2024 through the recognition of its targets and associated measures.