Science-Based Targets Initiative (SBTi): Setting Targets for a Net-Zero Future

The Science Based Targets initiative (SBTi) is a global partnership that enables companies and financial institutions to set greenhouse gas (GHG) emissions reduction targets in line with climate science and the goals of the Paris Agreement.

Established in 2015 by CDP, the United Nations Global Compact, the World Resources Institute (WRI), and the World Wide Fund for Nature (WWF), the SBTi provides a framework for organisations to align their emissions reduction strategies with the objective of limiting global warming to 1.5°C above pre-industrial levels.

What Is the Science Based Targets initiative (SBTi)?

The SBTi offers companies a clear pathway to reduce emissions in line with climate science. By setting science-based targets, organisations can demonstrate their commitment to sustainable practices and contribute to global efforts to mitigate climate change.

As of 2025, over 10,000 companies have committed to or set science-based targets through the SBTi.

Key Components of the SBTi Framework

1. Corporate Net-Zero Standard

The SBTi’s Corporate Net-Zero Standard is the world’s first framework for corporate net-zero target setting in line with climate science. It provides guidance for companies to set both near-term and long-term emissions reduction targets, ensuring a comprehensive approach to achieving net-zero emissions by 2050.

2. Sector-Specific Guidance

Recognising the unique challenges across different industries, the SBTi has developed sector-specific methodologies and requirements. These tailored approaches assist companies in sectors such as power generation, transportation, and manufacturing to set relevant and achievable targets.

3. Scope 1, 2, and 3 Emissions

The SBTi framework requires companies to account for:

• Scope 1: Direct emissions from owned or controlled sources.
• Scope 2: Indirect emissions from the generation of purchased electricity, steam, heating, and cooling.
• Scope 3: All other indirect emissions that occur in a company’s value chain.

Addressing all three scopes ensures a holistic approach to emissions reduction.

Setting Science-Based Targets: The Process

Companies interested in setting science-based targets through the SBTi typically follow these steps:

1. Commit: Submit a letter to the SBTi indicating the intent to set a science-based target.
2. Develop: Work on developing targets in line with SBTi criteria.
3. Submit: Present the targets to the SBTi for validation.
4. Communicate: Publicly announce the approved targets.
5. Disclose: Regularly report on progress towards the targets.

Recent Developments and Updates

In 2025, the SBTi is undergoing a major revision of its Corporate Net-Zero Standard to enhance its effectiveness and applicability. This includes refining guidance on Scope 3 emissions, carbon removals, and data quality.

Additionally, the SBTi has clarified its stance on the use of carbon credits. While recognising the role of carbon removals for residual emissions, the SBTi emphasises that companies should prioritise direct emissions reductions within their operations and value chains.

Benefits of Engaging with the SBTi

• Credibility: Targets validated by the SBTi are recognised as being aligned with climate science.
• Investor Confidence: Transparent and science-based targets can enhance investor trust and attract sustainable investment.
• Competitive Advantage: Proactive climate action can differentiate companies in the marketplace.
• Regulatory Preparedness: Aligning with SBTi standards can position companies ahead of evolving climate-related regulations.

Conclusion

The Science Based Targets initiative provides a robust framework for companies to align their emissions reduction efforts with the latest climate science. By setting and committing to science-based targets, organisations can play a pivotal role in the global transition to a net-zero economy, ensuring long-term sustainability and resilience.