A guide to Science-Based Targets (SBTi)

What is SBTi?

SBTi stands for the Science-Based Targets initiative.

Founded in 2015, as a collaboration between the Carbon Disclosure Project (CDP), the United Nations Global Compact (UNGC), World Wide fund for Nature (WWF), and the World Resources Institute (WRI), SBTi is a non-profit organisation that helps businesses set climate goals, specifically emissions-reduction targets, based on science. 

At the 2015 United Nations ‘COP’ Climate Change Conference, an international treaty called the “Paris Agreement” set the global goal of net zero emissions by 2050. 

SBTi as on organisation helps companies align their strategies with what is necessary to keep global warming below 1.5°C. 

What are SBTi targets?

Science-based targets are climate goals aligned with the latest climate science. Instead of vague pledges, they’re grounded in measurable actions that help companies reduce their greenhouse gas emissions. 

There are two types of targets within SBTi:

1. Near-term targets:

• Near-term targets are typically set for a 5-10 year timeframe. They are designed to drive immediate and tangible action by businesses to ensure that emission reductions start now rather than being deferred to the future. Near-term targets can be seen as building blocks for achieving net-zero targets, as they include a specific benchmark against a time period.some text
  • An example could be for a company to reduce greenhouse gas (GHG) emissions by 50% by 2030.

2. Net-zero targets:

• These are long-term commitments that focus on achieving near-total emissions reductions by a specified date, often by 2050. Net zero targets focus on reducing emissions to the absolute minimum, with only a small allowance for residual emissions that can be offset through carbon removal measures, such as reforestation or direct air capture technologies. These targets imply a fundamental transformation of business operations and supply chains, often requiring investment in renewable energy, low-carbon technologies, and collaboration across industries.some text
  • An example would be a company pledging to achieve net zero by 2050, meaning that for every unit of greenhouse gas emitted, an equivalent amount is removed, by investing in switching to 85% renewable energy, and offsetting the rest via investment in reforestation projects.

What are scope 1, 2, and 3 emissions within SBTI?

The Greenhouse Gas Protocol (a global framework for measuring and managing greenhouse gas emissions) categorises three “Scopes” of emissions. These categories help businesses identify where emissions originate from, and how they can reduce them. SBTi uses these categories, which are universally recognised. 

Scope 1: Direct emissions from operations

• Scope 1 emissions are the ones that you are directly responsible for releasing into the air. They are the greenhouse gases released directly by a company’s own operations. Scope 1 emissions are from sources that the company owns or controls. These emissions are typically easier to measure and control since they result from activities within the company’s direct operational boundaries. 
• Examples:some text
  • Fuel burned in cars, trucks, or vans owned by the company (e.g., delivery vans or company cars)
  • On-site fuel use, such as natural gas burned in a facility’s boilers or furnaces.

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Scope 2: Indirect emissions from energy use

• Scope 2 emissions to do with energy consumed or purchased. They are indirect but still under a company’s influence, as they depend on the amount of energy consumed and its source. They come from the energy a company purchases and consumes, such as electricity, steam, heating, or cooling. These emissions occur at the power plants or facilities that generate the energy—not directly on-site.
• Examples:some text
  • Electricity used to power office buildings, factories, or warehouses.
  • Purchased heating or cooling services for facilities.

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Scope 3: Emissions indirectly generated by a business

• Scope 3 emissions are essentially everything that isn’t covered within Scopes 1 and 2, and will account for the vast majority of most businesses’ emissions. These include emissions both upstream (from suppliers) and downstream (from customers or product use). They are the most comprehensive and challenging to manage, as they encompass all indirect emissions that occur throughout a company’s value chain. For a typical business, Scope 3 emissions will account for more than 70 percent of their carbon footprint
• Examples upstream:some text
  • Emissions from suppliers and third-party manufacturing
  • Production and transportation of raw materials
• Examples downstream:some text
  • Emissions from the use of sold products (e.g. if you manufacture cars)
  • Waste generated after a product’s lifecycle.

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Scope 1 and 2 emissions are typically prioritised first as they are more easily measured and reduced, while scope 3 emissions are more complex but remain crucial if companies want to achieve their emissions-reduction targets.

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Why are science-based targets important?

By setting science-based targets, companies take accountability for their climate impact. Aligning with SBTi means your actions are guided by the latest science grounding business decisions in facts. This approach not only builds trust with stakeholders but also strengthens your competitive position. Additionally, as regulations tighten and customer expectations evolve, science-based targets serve as a strategic roadmap.

Customers, investors, and employees want real action. Because it is science-based, SBTi is perhaps the most trusted certification that your sustainability targets are credible, and that you’re serious about the steps you're taking.

As well as this, they genuinely help you to keep on track. In a survey by We Mean Business, 79% of business leaders stated that science-based targets (SBTs) helped their companies stay on track with clear timelines. 

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Is SBTi mandatory?

In short, no.

SBTi is a voluntary framework. However, it is widely recognised and respected, and comes with significant benefits. Investors are increasingly prioritising companies with credible climate strategies, and customers are choosing brands that align with their values. As such, businesses that ignore SBTi may find themselves at a competitive disadvantage.

What are the benefits of SBTi for businesses?

Science-based targets are not only a powerful tool for combating climate change but also bring significant advantages to businesses. As Dexter Galvin, Global Director of Corporates and Supply Chains at CDP, explains, setting science-based targets is a strategic move that drives value across the following dimensions:

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1. Strengthened brand reputation - According to a survey, 79% of executives reported an improved brand reputation after adopting science-based targets. Companies like Dell have noted that these targets help meet customer expectations for corporate responsibility.
2.  Increased investor confidence - For example, Tesco used SBTi commitments to demonstrate their climate leadership to stakeholders, appealing to ethical investors looking for future-proof opportunities.
3. 3. Resilience against regulation - In a surveyed report, over 35% of executives stated that these targets provided increased resilience against future regulations by aligning their strategies early with climate goals.
4. 4. Driving innovation - For instance, Sony developed a new plastic, SORPLAS, made of 99% recycled material, reducing CO2 emissions during manufacturing by almost 80% .
5. 5. Cost Savings - Contrary to the belief that sustainability is costly, 29% of companies reported bottom-line savings after adopting science-based targets by improving operational efficiency and reducing reliance on scarce resources.
6. 6. Competitive Advantage - With the shift toward a low-carbon economy, over half (55%) of businesses recognised a competitive edge through SBTi commitments.

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How does SBTi work? How do you set and validate SBTi targets?

1. Commit

• Submit a formal commitment letter via the SBTi platform, indicating your intention to develop science-based targets. For SMEs, a simplified commitment route is available, bypassing some steps for larger organisations.
• This will also include a pledge to submit validated targets within 24 months.
• Once submitted, your company will be listed as “Committed” on the SBTi website.

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2. Develop

• Develop emissions reduction targets that align with the SBTi’s rigorous criteria. This includes assessing your GHG emissions across all relevant scopes (1,2 ,and 3).
• Near-term targets (5–15 years) are mandatory; long-term net-zero goals are encouraged. 
• As per the pledge in the “Commit” step, companies have 24 months post-commitment to finalise and submit these targets.
• Tip! Leverage tools like the SBTi’s Getting Started Guide and work closely with SBTi consultants if you need support.

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3. Submit

• Submit your developed targets to SBTi, making sure you conform to the Greenhouse Gas Protocol, lay out a timeframe of 5-15 years for achieving your reduction targets, and include all relevant GHGs. 
• The SBTi’s technical team rigorously reviews submissions to ensure they meet scientific criteria.
• Tip! Familiarise yourself with the feedback process—SBTi provides detailed guidance for revisions if needed.

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4. Communicate

• Once validated, announce your targets to stakeholders and communicate your climate commitments publicly. Your targets will also be listed on the SBTi and partner websites.some text
  • you can publish targets through annual sustainability reports, CDP disclosures, or company communications. Explain the significance of the targets and the actions your company is taking to achieve them.
• Targets must be made public within six months of validation. If this deadline is missed, revalidation may be required.

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5. Disclose

• Provide annual updates on your company-wide emissions and progress toward targets. This includes reporting reductions and mitigation measures.
• Tip! Implement robust carbon accounting systems to streamline tracking.

Leafr can help you navigate this process through one of our many expert consultants.

Does SBTi allow carbon offsets?

For SBTi, the focus is all on reducing GHG emissions.

As such, once you’ve done everything you can to reduce your own emissions as much as possible, offsets are allowed for those final hard-to-reduce emissions (for example in key industrial processes). However, they should be the last resort, not the first port of call.

How many companies have signed up for SBTi?

At the time of writing 9,789 companies have already signed up to SBTi - either by setting targets or committing themselves to develop and submit targets within 24 months. 

You’ll be in good company if you join. Big brand names like Microsoft, Unilever, IKEA, and Arsenal Football Club are already on board. 

Want to learn more?

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At Leafr, specialise in cutting through the complexity, and help businesses with the talent, tools and resources to hit their sustainability goals, seamlessly. 

Ready to take the next step? Get in touch today.

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