The global climate crisis demands urgent action from all sectors. Global temperatures are already 1.2 °C above pre-industrial levels, and the 2023 IPCC report warns that emissions must halve by 2030 and reach net-zero by 2050 to avoid catastrophic warming. While the Paris Agreement set out the ‘what,’ it did not prescribe a standardized framework for how businesses should achieve net-zero emissions.
Science-based targets provide the answer, grounding corporate climate commitments in the latest climate science.
What Are Science-Based Targets?
Science-based targets (SBTs) are greenhouse-gas (GHG) reduction goals aligned with limiting global warming to well-below 2 °C, with efforts toward 1.5 °C, as agreed in the Paris Agreement. Developed by the Science Based Targets initiative (SBTi)—a collaboration of CDP, UNGC, WRI, and WWF, these targets tell companies and financial institutions exactly how much and how quickly they must reduce emissions across their value chain. The SBTi develops the standards, tools, and guidance that allow companies to set these targets. Through its wholly-owned subsidiary, SBTi Services, the initiative also assesses and validates companies' and financial institutions' targets against these science-based criteria.
Why Should Your Business Set SBTs?
- Urgency of Climate Science: Every fraction of a degree matters.
- Regulatory Foresight: Anticipate and exceed evolving emissions regulations.
- Investor & Customer Trust: Demonstrate genuine, verifiable climate action.
- Supply-Chain Influence: Encourage suppliers to align with science-based goals.
- Competitive Advantage: Low-carbon leadership attracts capital and talent.
Who Can Set Science-Based Targets?
The SBTi framework is designed for companies and financial institutions worldwide. It is open to businesses of every shape and size, including small-to-medium-sized enterprises (SMEs). The SBTi provides specific guidance tailored for SMEs, allowing them a streamlined validation route. By the end of 2023, over 4,000 companies and financial institutions had set or committed to setting targets validated by the SBTi, leading the transition to a net-zero economy.
The 5-Step SBTi Process
Step 1: Commit - Large companies begin by submitting a commitment letter to the SBTi, pledging to set science-based targets. Once accepted, the company is recognized as "committed" on the SBTi website and has a **two-year window** to submit its targets for validation. SMEs can bypass this initial commitment stage via a separate validation route.
Step 2: Develop - This is often the most complex step and involves performing rigorous carbon accounting. Companies must carefully review all their emissions, categorised into three scopes based on the Greenhouse Gas Protocol:
- Scope 1: Direct emissions (e.g., on-site fuel, fleets)
- Scope 2: Indirect energy emissions (purchased electricity, heat)
- Scope 3: Value-chain emissions (purchased goods, transport, product use)
Science-based targets must cover Scope 1 and 2. Targets must also cover Scope 3 emissions if they constitute more than 40% of the company's combined Scope 1, 2, and 3 emissions. The SBTi provides various resources, including guides and sector-specific guidance, to help companies develop their targets. Carbon accounting software can assist in measuring and tracking emissions accurately. As of July 15, 2022, most new submissions for Scope 1 and 2 targets must align with a 1.5°C trajectory.
Step 3: Submit - Once developed, the company submits its targets to SBTi Services for independent review and validation against the SBTi's framework and criteria. Various submission types are available depending on the company size and target type (e.g., near-term, net-zero, SME). The review committee provides feedback on the submission.
Step 4: Communicate - After the targets are approved and validated by the SBTi, this information is published on the SBTi website and relevant partner websites. The company then has six months to publicly disclose its approved targets to its stakeholders. Failure to disclose within this timeframe requires the targets to be revalidated.
Step 5: Disclose - The final step involves the company regularly disclosing its annual GHG emissions and reporting its progress towards achieving its validated science-based targets. This is typically done through annual reports, sustainability reports, the company website, or disclosure platforms like CDP. Consistent disclosure ensures transparency for stakeholders and the public.
Types of Science-Based Targets
Target Type
Timeline and Aim
Neat Term
5–10 year emissions cuts; critical for 2030 milestones
Long-Term
Reduction milestones by 2050 (or 2040 for power) toward net-zero
Net-Zero
Deep decarbonization across all scopes; residual emissions balanced by removals or offsets
Beyond Target Setting: Embedding Climate Action
- Integrate SBTs into strategy: Tie executive pay, R&D, and procurement to emissions goals.
- Engage your value chain: Share targets with suppliers, customers, and financial partners.
- Invest in low-carbon innovation: Allocate capital to clean energy, energy efficiency, and circular solutions.
- Monitor & iterate: Use carbon accounting software and internal audits to track progress and refine targets.
Setting and achieving science-based targets is more than a compliance checkbox, it’s a strategic imperative that aligns your business with a 1.5 °C future. By following the SBTi’s 5-step framework, you can transform your climate ambition into credible, investor-grade action, drive innovation, and safeguard long-term growth in a warming world.
To understand GHG emissions, click
here.
