SBTi: Science Based Targets Initiative

What It Is

The Science Based Targets initiative (SBTi) is a partnership between CDP, the United Nations Global Compact, World Resources Institute, and WWF that provides companies with a clearly defined pathway to set greenhouse gas emission reduction targets consistent with climate science. Launched in 2015, SBTi has become the gold standard for corporate climate target-setting, with over 7,000 companies worldwide having committed to or validated science-based targets.

SBTi's core function is independent validation — verifying that a company's emissions reduction targets are aligned with the level of decarbonization required to limit global warming to 1.5°C above pre-industrial levels, as described in the IPCC's assessments. This third-party validation distinguishes SBTi targets from self-declared corporate climate pledges, which vary widely in ambition, methodology, and credibility.

SBTi offers two types of targets:

Near-term targets (required): 5-10 year targets covering Scope 1 and 2 emissions (minimum 42% absolute reduction by 2030 from base year for 1.5°C alignment) and Scope 3 emissions (required when Scope 3 represents 40% or more of total emissions).

Net-zero targets (optional but increasingly expected): Long-term targets requiring at least 90% absolute reduction across all scopes by 2050 at the latest, with residual emissions (≤10%) addressed through permanent carbon dioxide removal. These include interim targets for 2030 and 2035.

SBTi has developed sector-specific guidance for high-impact sectors including power generation, oil and gas, financial institutions, forest land and agriculture (FLAG), and others.

Who Uses It

• Large corporations across all sectors, with particular concentration in consumer goods, technology, manufacturing, and financial services
• Companies responding to investor pressure — SBTi validation is increasingly expected by Climate Action 100+ signatories and institutional investors
• Supply chain participants — major purchasers (Apple, Walmart, Salesforce) increasingly require SBTi commitments from their suppliers
• CDP reporters — SBTi status is captured in CDP's questionnaire and contributes to scoring
• Companies subject to CSRD — ESRS requires disclosure of whether targets are science-based, making SBTi validation a practical evidence point
• Small and medium enterprises — SBTi offers a streamlined validation route for SMEs with simplified requirements

Key Requirements

1. Commit to setting a science-based target by submitting a commitment letter to SBTi. Companies have 24 months to submit targets for validation after committing.

2. Measure emissions following the GHG Protocol — complete Scope 1, 2, and 3 inventories. The base year must be 2015 or later.

3. Set near-term targets covering at least 95% of Scope 1 and 2 emissions, with a minimum 42% absolute reduction by 2030 (for 1.5°C alignment). Scope 3 targets are required if Scope 3 is ≥40% of total emissions.

4. Submit for validation — provide methodology documentation, emissions data, and target details. SBTi reviews against its criteria and either validates, requests revisions, or rejects.

5. Report progress annually through CDP or equivalent public disclosure. Targets must be recalculated every five years or after significant changes (M&A, divestment, methodology changes).

For net-zero targets, companies must achieve at least 90% absolute emissions reduction across all scopes by 2050, with residual emissions neutralized by permanent carbon dioxide removal.

How to Implement

Phase 1: Emissions Baseline (2-4 months) Develop a comprehensive GHG inventory following GHG Protocol standards. Ensure coverage of all material Scope 3 categories. Select an appropriate base year (2015 or later).

Phase 2: Target Development (2-3 months) Use SBTi's target-setting methods — absolute contraction approach (most common), sectoral decarbonization approach (for certain sectors), or physical intensity targets (for specific sectors). Model reduction pathways that achieve required ambition levels. Identify the specific reduction levers (energy efficiency, renewable energy, process changes, supply chain engagement).

Phase 3: Reduction Roadmap (1-2 months) Develop a detailed implementation plan showing how targets will be achieved. This isn't submitted to SBTi but is essential for internal alignment and credibility.

Phase 4: Validation Submission (4-8 months for review) Submit target documentation to SBTi. The validation queue currently runs 4-8 months. Be prepared for clarifying questions or revision requests.

Phase 5: Implementation and Reporting Execute the reduction roadmap. Report progress annually through CDP or public disclosure. Recalculate targets every five years.

Relationship to Other Frameworks

SBTi builds on the GHG Protocol for emissions measurement methodology — you cannot set SBTi targets without a GHG Protocol-compliant inventory.

SBTi targets are reported through CDP and contribute to CDP scoring. CDP's questionnaire captures SBTi commitment status, validation status, and progress against targets.

ISSB IFRS S2 and ESRS E1 require disclosure of climate targets, including whether they are science-based. SBTi validation provides the evidence.

TCFD Metrics & Targets pillar calls for disclosure of emissions reduction targets — SBTi-validated targets represent best practice for this disclosure.

SBTi's FLAG guidance connects to TNFD and SBTN (Science Based Targets for Nature) for companies with significant land use impacts.

Why It Matters

SBTi has achieved something remarkable: it created a credible, independently validated standard for corporate climate targets that is recognized by investors, regulators, customers, and civil society globally. In a landscape cluttered with vague net-zero pledges and self-declared commitments, SBTi validation provides the assurance that a company's targets are actually consistent with what climate science requires.

The initiative is increasingly moving from "nice to have" to "need to have." Institutional investors use SBTi status in engagement and voting decisions. Major procurement organizations require it from suppliers. CSRD and other regulations ask companies to disclose whether their targets are science-based. Companies without validated targets face growing questions about the credibility of their climate commitments.

The practical challenge is that SBTi requires real emissions reduction — not offsets, not creative accounting. For companies willing to make genuine operational changes, SBTi provides the framework and credibility. For companies hoping to claim climate leadership without fundamental business model changes, SBTi is deliberately designed to be out of reach.