SBTi stands for the Science-Based Targets initiative, a collaborative, non-profit organisation founded in 2015 by four major climate-focused groups:

• The Carbon Disclosure Project (CDP)
• The United Nations Global Compact (UNGC)
• The World Wide Fund for Nature (WWF)
• The World Resources Institute (WRI)

Its main purpose is to help businesses set emissions-reduction targets in line with the latest climate science. These targets are carefully designed to keep global warming below 1.5°C, in line with the Paris Agreement—an international treaty formed at the 2015 United Nations ‘COP’ Climate Change Conference, which set the collective goal of reaching net zero emissions by 2050.

Many organisations talk about cutting carbon footprints, but the SBTi ensures those plans aren’t just empty promises. By evaluating a company’s greenhouse gas (GHG) emissions and projected reductions, SBTi provides validation that climate goals are both ambitious and scientifically grounded. This external validation boosts a company’s credibility among stakeholders—customers, investors, and regulators.

For more on SBTi, you can visit the official website at:
Science Based Targets

The Importance of the Paris Agreement

The Paris Agreement laid crucial groundwork for global climate action. It’s notable because it sets a unifying target—limiting temperature rise to below 2°C, ideally 1.5°C—but leaves each country and organisation to figure out specific action plans. That’s where SBTi plays a pivotal role: it translates the lofty ideals of the Paris Agreement into sector-specific, science-driven steps that companies can follow and track. Rather than simply hoping to reduce emissions, businesses that adopt science-based targets commit to transparent, measurable goals verified by leading climate authorities.

What Are SBTi Targets?

In essence, science-based targets are any emissions-reduction objectives aligned with the best available climate science. Instead of pledging broad statements—like “going green” or “becoming more sustainable”—companies commit to quantifiable metrics over specific timelines. These targets guide businesses to reduce greenhouse gas emissions at a rate consistent with stabilising global temperature rise.

SBTi recognises two main categories of targets:

1. Near-Term Targets
   • Typically spanning 5–10 years.
   • Aim to catalyse immediate action, ensuring that companies start cutting emissions sooner rather than later.
   • Example: A company might promise to cut its overall GHG emissions by 50% by 2030.
   Think of near-term targets as the short- to medium-term checkpoints. They keep businesses accountable in the here and now, rather than deferring tough action indefinitely.
2. Net-Zero Targets
   • Longer-term commitments, often looking ahead to 2050 (or earlier, if feasible).
   • Involve reducing emissions by a very high percentage—say, 85–95%—and then offsetting any small remainder using carbon removal measures like reforestation or direct air capture.
   • Example: Pledging to achieve net zero by 2050, while relying on 85% renewable energy and offsetting the rest through verified carbon credit projects, such as forest restoration.

These two categories work in tandem. Near-term targets create a sense of urgency and ensure progress is measurable right now, while net-zero targets reflect a longer-term trajectory for more fundamental operational overhauls.

What Are Scope 1, 2, and 3 Emissions Within SBTi?

The Greenhouse Gas Protocol—a global standard for measuring and managing GHG emissions—classifies emissions into three distinct “Scopes.” SBTi uses this framework to help companies fully account for their emissions footprint.

1. Scope 1 (Direct Emissions)
   • Definition: Emissions from sources owned or controlled by the company.
   • Examples:
     • Fuel burned in a company-owned delivery van.
     • Natural gas used in a company’s onsite furnace.
   • Relevance: Typically easier to measure and reduce since they originate directly from a business’s operations.
2. Scope 2 (Indirect Emissions from Energy Use)
   • Definition: Emissions generated offsite but resulting from the energy (electricity, steam, heating, or cooling) a company purchases.
   • Examples:
     • Electricity for running office lights and equipment.
     • Purchased heating for a warehouse or distribution centre.
   • Relevance: While they occur at a power plant, a business can influence Scope 2 emissions by shifting toward renewable energy providers or increasing energy efficiency.
3. Scope 3 (Value Chain Emissions)
   • Definition: Encompasses all other indirect emissions across a company’s entire value chain—both upstream (suppliers) and downstream (product use).
   • Examples:
     • Emissions from third-party manufacturing of raw materials.
     • Transport and distribution by external logistics providers.
     • Waste disposal and end-of-life treatment of sold products.
     • Customer usage of products (e.g., emissions from a car after it’s sold).
   • Relevance: Scope 3 is the largest source of emissions for many businesses—often accounting for 70% or more of their total footprint. Though challenging to control, it’s pivotal for holistic emissions reductions.

Companies often prioritise Scope 1 and Scope 2 initially, as these are more straightforward to measure and manage. However, ignoring Scope 3 can undermine a net-zero strategy, given its substantial share of total emissions.

Why Are Science-Based Targets Important?

1. Accountability & Credibility
   Setting science-based targets signals a genuine commitment to climate action. External validation from SBTi helps stakeholders distinguish serious efforts from greenwashing.

“Because it is science-based, SBTi is perhaps the most trusted certification that your sustainability targets are credible.”

1. Regulatory Readiness
   Governments worldwide are tightening regulations on carbon emissions. By aligning with SBTi, you’re effectively future-proofing your compliance strategy. Rather than scramble each time regulations update, you’ll already be on track with rigorous, science-based guidelines.
2. Competitive Positioning
   Consumers and investors increasingly favour brands with credible, transparent climate commitments. A well-publicised SBTi commitment can help you stand out in the marketplace. As regulations tighten, you’ll likely face fewer operational hurdles compared to competitors who haven’t planned ahead.
3. Stakeholder Trust
   Internally, employees appreciate working for forward-thinking companies that walk the talk on sustainability. Externally, it resonates with customers, investors, and suppliers who demand robust ESG (Environmental, Social, Governance) practices.
4. Operational Efficiency
   In many cases, cutting emissions goes hand in hand with reducing waste and energy usage, which can lead to cost savings. According to a We Mean Business survey, 79% of business leaders confirmed that science-based targets helped them stay on track with clear, actionable timelines.

Is SBTi Mandatory?

In short, no. The SBTi is a voluntary framework. But while it’s not legally mandated, companies that ignore it may lose out on significant opportunities. Investors, for example, increasingly use ESG metrics to inform decisions, often giving preference to organisations with validated science-based targets. Likewise, customers and employees may favour companies that take tangible steps to address climate concerns. In an era where brand reputation can shift quickly, the cost of inaction could be higher than the effort of aligning with SBTi.

The Benefits of SBTi for Businesses

1. Strengthened Brand Reputation
A robust climate commitment can boost your corporate image. As Dexter Galvin, Global Director of Corporates and Supply Chains at CDP, often emphasises, “Setting science-based targets is a strategic move that drives value across multiple dimensions.” A survey found that 79% of executives reported an improved brand reputation after adopting science-based targets. Take Dell, for instance, which publicly credits its SBTi-aligned goals for enhancing its brand appeal among consumers focused on corporate responsibility.

2. Increased Investor Confidence
Financial stakeholders look for future-proof opportunities. Having SBTi validation demonstrates to investors that your business is proactively managing climate risks. Tesco is a prime example: they’ve successfully communicated their SBTi commitments to ethical investors, showcasing strong leadership in the retail sector.

3. Resilience Against Regulation
Another surveyed report indicated that 35% of executives believe SBTi targets offer a buffer against future climate policies and regulations. By integrating science-based strategies early, companies aren’t caught flat-footed by emerging legal requirements.

4. Driving Innovation
SBTi pushes businesses to think differently about products and processes. For example, Sony developed a new plastic called SORPLAS—made of 99% recycled material—reducing CO2 emissions in manufacturing by nearly 80%. This sort of innovation can spur new revenue streams and open up additional markets.

5. Cost Savings
Contrary to the belief that sustainability is always expensive, around 29% of companies surveyed reported net cost savings after setting science-based targets—thanks to operational efficiencies in energy, logistics, and resource management.

6. Competitive Advantage
As the shift to a low-carbon economy accelerates, roughly 55% of businesses reported a direct competitive edge through SBTi commitments. From marketing leverage to favourable supply chain partnerships, being known as a climate-forward organisation can open doors that remain closed to less proactive peers.

How Do You Set and Validate SBTi Targets?

The journey typically unfolds in five steps:

1. Commit
   • Submit a formal commitment letter through the SBTi platform.
   • SMEs can opt for a streamlined route, while larger corporations follow a more detailed procedure.
   • Once accepted, your company appears as “Committed” on the SBTi website, with an obligation to submit final targets within 24 months.
2. Develop
   • Map out all relevant GHG emissions (Scopes 1, 2, and 3).
   • Craft near-term targets (5–15 years) and consider longer-term net-zero objectives.
   • Utilise the SBTi’s Getting Started Guide and, if needed, engage specialised SBTi consultants for technical support.
3. Submit
   • Present your emissions-reduction targets to SBTi for review, making sure they match the Greenhouse Gas Protocol and SBTi’s rigorous criteria.
   • The SBTi technical team will evaluate your methodology, baseline data, and proposed actions.
   • Expect a feedback loop where you may need to refine certain elements before final approval.
4. Communicate
   • After validation, announce your targets. Common channels include:
     • Annual sustainability or CSR reports
     • Disclosures to CDP
     • Press releases, stakeholder newsletters, or social media campaigns
   • Under SBTi guidelines, validated targets must become public within 6 months of approval.
5. Disclose
   • Provide annual progress updates, detailing any changes in emissions or new initiatives.
   • Develop robust internal carbon accounting systems to streamline future reporting and maintain transparency.
   • Remember: if you fail to make targets public within the specified timeframe, you may need to revalidate them.

Does SBTi Allow Carbon Offsets?

Offsets—such as reforestation or purchasing carbon credits—should be a last resort. The initiative stresses actual emission reductions first and foremost. While offsets can cover residual emissions in hard-to-abate sectors (like certain industrial processes), companies must prove they have taken every feasible step to eliminate emissions at the source. This approach ensures that offsets supplement, rather than replace, genuine decarbonisation.

How Many Companies Have Signed Up for SBTi?

As of the latest update, approximately 9,789 companies worldwide have either set science-based targets or committed to doing so within 24 months. Big names like Microsoft, Unilever, IKEA, and Arsenal Football Club have all embraced SBTi, showcasing its wide appeal across diverse sectors—from tech giants to sports organisations.

• For a full list of participants, you can check the SBTi website’s Companies Taking Action page.

Want to Learn More?

Here at Leafr, we specialise in cutting through the complexities of sustainability and helping businesses efficiently reach their climate targets. If SBTi feels daunting, our pool of expert consultants can guide you step-by-step, from your initial materiality assessment to final target validation and beyond.

• Ready to take the next step?
  Get in touch today to see how Leafr’s network can support your 1.5°C-aligned transition.

Our mission is to streamline the journey toward net zero, so you can focus on what you do best while confidently aligning with global best practices—SBTi included.

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