Climate revolution: Using Science-Based Targets to achieve the Paris 1.5-degree target?
The centerpiece of this story about Science-Based Targets is a podcast, which is only available in German. For people who do not speak German, we have compiled the most important information about SBT in English below. The original version of the podcast can be found at the end of this page.
One of the most pressing challenges of our time is climate change. As the Otto Group, we want to make a tangible and measurable contribution to limiting global warming and ensure that our goals and activities are in line with the 1.5 degree target of the Paris Climate Agreement. Therefore, in 2022, we committed to developing an ambitious and comprehensive science-based target (SBT) to systematically develop our previously successful climate protection activities.
At the end of February 2024, we successfully completed this validation process with the Science Based Targets Initiative (SBTi).
With the SBT, we are intensifying our ambitions and addressing the greenhouse gas emissions of our entire value chain (Scope 1, Scope 2 and Scope 3 emissions) – from the cultivation of raw materials and the manufacture of products to the use phase and the disposal of merchandise.
Integrating the marketplace business as part of the target is a particular feature within the competitive environment. By doing so, we are exceeding the minimum requirements for successful validation and customary practice among competitors.
Our new science-based climate target* is divided into three sub-targets:
- Sub-target 1: Absolute scope 1 and 2 greenhouse gas emission reduction by 42% by the end of FY 2030/31 compared to FY 2021/22.
- Sub-target 2 (Supplier Engagement): At least 50% third-party brands and marketplace partners by spend covering purchased goods and services set science-based target by the end of FY 2027/28.
- Sub-target 3: Absolute reduction in scope 3 greenhouse gas emissions by 42% by the end of FY 2031/32 compared to FY 2021/22.
The SBT is not only a promise to the environment and future generations, but also a call to action within the entire Group.
Having our ambitious climate targets validated is a significant milestone for the Otto Group and demonstrates our determination to play a leading role in the sustainable transformation of the industry. However, we are aware that we in the Otto Group cannot achieve the goal of a 1.5 degree society alone. We need a collaborative approach in which business, politics and society – also on a global scale – work together on concrete measures.
With the SBT, the Otto Group is further developing its long-standing successful climate protection strategy and is demonstrating its determination to play a leading role in the sustainable transformation of the industry. The new, science-based climate target represents an expansion of the sphere of influence. It covers the entire value chain – from the cultivation of raw materials and production to a product's useful life and eventually its disposal – and is therefore much more ambitious than any climate target before. This massive expansion is tantamount to a significant intensification of climate protection measures.
With our climate targets, we are making an important and measurable contribution to limiting global warming.
In addition to our SBT, we intend to achieve net zero emissions by 2045 – which means reducing greenhouse gas emissions along our entire value chain by at least 90 percent and offsetting only the remaining 10 percent by engaging in measures to remove CO2 from the atmosphere. Our long-term climate target and the validated SBT demonstrate yet again the significant importance of climate protection within the Otto Group, even in economically challenging times.
Click here for the official press release.
* Reference SBTi: The official target formulation can be viewed on the SBTi website: Target dashboard – Science-Based Targets
In a special podcast episode (available only in German), Maria Raeck and Leander Stüble from the Otto Group's Corporate Responsibility department explain how these goals were developed and what impact they have on the Group's business activities:
