SBTi (Science Based Targets initiative) is a global initiative that promotes the adoption of greenhouse gas (GHG) emissions reduction targets based on scientific criteria. Founded in 2015 through a collaboration between CDP, the UN Global Compact, the World Resources Institute (WRI), and WWF, represents a concrete commitment to decarbonization for companies and serves as an example for the wider sector.
The initiative develops sector-specific standards, tools, and guidelines that help companies set emissions reduction goals aligned with achieving Net-Zero by 2050.
The process of defining Net-Zero targets follows specific steps: from the initial commitment letter (Commit), to the development and implementation of a reduction plan (Develop), to SBTi’s validation of the target (Submit), and finally communication to stakeholders (Communicate). Progress must then be monitored and disclosed annually (Disclose).
The Net-Zero Standard includes three main stages:
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Define short-term targets to halve direct and indirect emissions by 2030, limiting global warming to 1.5°C above pre-industrial levels, as set out in the Paris Agreement.
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Set long-term goals to reduce emissions almost entirely (up to 90%) by 2050.
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Neutralize any residual, unavoidable emissions through carbon removal and permanent storage (carbon offsetting, expressed in tons of CO2e) once the long-term target has been achieved.
Companies can also contribute to emissions mitigation beyond their value chain (Beyond Value Chain Mitigation – BVCM) by financially supporting GHG reduction and removal projects guided by the principles of Scale, Financing Needs, Co-benefits, and Climate Justice. This action lies outside Scopes 1, 2, and 3.
Operationally, companies should:
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Select a base year to quantify direct emissions (Scope 1), indirect emissions from purchased energy (Scope 2), and other value chain emissions (Scope 3), following the GHG Protocol standard.
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Define the boundaries of their reduction targets, focusing on high-impact areas. Targets must cover 95% of Scope 1 and 2 emissions and include Scope 3 if it exceeds 40% of total emissions. Companies can use one of SBTi’s approved methods: Absolute Contraction Approach, Economic Intensity Approach, or Sectoral Decarbonization Approach.
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Establish both short-term and long-term target years to guide immediate actions and long-range strategies.
For SMEs with fewer than 250 employees and annual emissions under 10,000 tons of CO2e, the Science Based Targets initiative offers a simplified pathway with predefined targets and the exclusion of Scope 3 from required goals, requesting only a commitment to measure and reduce it in the future.