Navigating the New SBTi SME Definition: Empowering New Zealand's Small Businesses
Small and medium-sized enterprises (SMEs) form the backbone of New Zealand's business landscape. With approximately 546,000 SMEs representing a staggering 97% of all firms, these enterprises play a crucial role in the nation's economic growth, accounting for 29.3% of employment and contributing over a quarter of New Zealand's gross domestic product (GDP) (Data source: Stats NZ).
The New SBTi SME Definition: What You Need to Know
As of January 1, 2024, the SBTi's updated SME definition comes into effect. To be considered an SME under the new guidelines, businesses must meet the following criteria:
Emit less than 10,000 tCO2e (carbon dioxide equivalent) across scope 1 and location-based scope 2 emissions.
Not own or control maritime transport vessels.
Not own or control power generation assets.
Not be classified in the Financial Institution (FI) Sector or Oil & Gas (O&G) Sector.
Not be a subsidiary of a parent company whose combined businesses fall into the standard validation route.
Additionally, two or more of the following must be true:
Employ fewer than 250 employees.
Have an annual turnover of less than €40 million.
Possess total assets of less than €20 million.
Not operating in a mandatory Forest, Land, and Agriculture (FLAG) sector.
Why a Science-based Target is Important
Setting a science-based target is crucial for businesses aiming to contribute to global emission reduction goals by 2030 and 2050. Aligning your emissions reduction strategy with these targets ensures your company is part of a collective effort to combat climate change.
Opportune Consulting: Your Partner in Sustainable Business
At Opportune Consulting, we specialize in assisting small businesses in New Zealand to measure their emissions and set science-aligned emission reduction targets. Our mission is to empower SMEs to embrace sustainability while enhancing their operational efficiency and competitiveness.
With the updated SBTi SME definition, small businesses can now clearly define their role in the climate action landscape. By working with Opportune Consulting, SMEs in New Zealand can:
Accurately measure their emissions.
Set ambitious yet achievable science-aligned emission reduction targets.
Access guidance on reducing emissions and adopting sustainable practices.
Navigate the complexities of the updated SBTi criteria and validation process.
Should I Get My Target Validated by the SBTi Initiative?
While getting your target validated by the SBTi initiative offers extra validation and credibility, it's important to note that alignment alone is also an option. The decision depends on your business goals and the level of assurance you seek in your sustainability efforts.
How Much Does It Cost?
The cost of getting your target validated by the SBTi initiative is $1250, having recently gone up from $1000. This investment offers invaluable credibility and demonstrates your commitment to science-based, sustainable business practices.
The SBTi's new definition is an exciting opportunity for SMEs to take control of their environmental impact and contribute to a greener, more sustainable future. As we move towards 2024, small businesses in New Zealand can turn to Opportune Consulting for support and expertise, ensuring they not only meet the SBTi's criteria but also make a meaningful difference in the fight against climate change.
