What is the SBTi?

The Science Based Targets initiative (SBTi) is an international initiative that supports companies in setting science-based greenhouse gas emissions reduction targets. Its methodology ensures that corporate climate targets are aligned with the Paris Agreement and the objective of limiting global warming to 1.5°C.

The SBTi is not a legal requirement but an internationally recognised framework that provides a credible methodology for developing and validating corporate decarbonisation targets. Its application is becoming increasingly important for investors, lenders, business partners and other stakeholders.

Why is the SBTi important?

An increasing number of companies are committing to climate targets, but these commitments are only credible if they are based on objective scientific criteria. The SBTi provides this credibility.

The initiative:

• defines the level of emissions reductions required to meet global climate goals;
• provides a standardised methodology for setting corporate targets;
• offers independent validation of corporate climate targets;
• enhances the transparency and credibility of corporate ESG and climate strategies.

Science-based targets have become a competitive advantage, particularly for companies operating in international value chains.

How does the SBTi work?

The first step is to calculate the company’s greenhouse gas emissions, including Scope 1, Scope 2 and, where applicable, Scope 3 emissions.

The company then develops emissions reduction targets in accordance with the SBTi methodology and submits them for independent assessment. If the targets meet the required criteria, they are officially validated by the SBTi.

After validation, the company is expected to monitor its progress regularly and publicly report on the achievement of its targets.

What types of targets can companies set?

The SBTi provides methodologies for different time horizons and business circumstances.

The most common target types include:

• near-term emissions reduction targets, typically covering a period of 5–10 years;
• Net-Zero targets, requiring deep long-term emissions reductions;
• sector-specific pathways, tailored to the characteristics of individual industries.

A fundamental principle of the SBTi is that actual emissions reductions must take priority. Carbon credits and offsetting may only play a limited role and cannot replace genuine emissions reductions.

Who should adopt the SBTi?

The SBTi is relevant for companies that:

• are developing a climate or decarbonisation strategy;
• prepare ESG or sustainability reports;
• are preparing for CSRD reporting;
• seek to meet investor or lender expectations;
• operate within international supply chains;
• intend to make a Net-Zero commitment.

Although voluntary, the SBTi is increasingly becoming an expectation for suppliers of large multinational companies.

How does the SBTi relate to ESG?

The SBTi primarily supports the Environmental (E) pillar of ESG while also strengthening corporate sustainability reporting and climate governance.

Science-based targets contribute to:

• managing climate-related risks;
• building credible decarbonisation strategies;
• improving the reliability of emissions data;
• strengthening the quality of ESG reporting;
• building trust among investors, customers and business partners.

Frequently Asked Questions

Is the SBTi mandatory?

No. The SBTi is a voluntary international initiative. However, science-based targets are increasingly expected by investors, lenders and multinational companies.

Is the SBTi the same as a Net-Zero commitment?

No. Net Zero is a long-term climate goal, while the SBTi provides the methodology for setting, validating and monitoring science-based emissions reduction targets.

What are the benefits of SBTi-validated targets?

SBTi-validated targets increase the credibility of a company’s climate commitments, strengthen investor and customer confidence, and help meet financing, supply chain and ESG requirements.

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