Science-Based Targets Initiative (SBTi) explained (incl. target & reduction path Excel template)
Yacin Bessas
9Min. reading time
Laws and regulations
This article discusses the Science-Based Targets Initiative (SBTi), which defines and promotes best practices for emissions reduction and net-zero targets in line with climate science. The SBTi offers companies that want to set science-based targets aligned with the latest climate science findings technical support and expert resources. The article explains the SBTi’s net-zero standard, science-based targets, and their significance.
All in all: Why your company will benefit from science-based targets, what role small and medium-sized enterprises (SMEs) can play, and how to properly define targets for companies and SMEs. Let’s get started!
ℹ️ 🖥️ Secure your free Excel template for SBTi target setting and reduction pathways now. Choose between three scenarios for net-zero by 2030, 2035, or 2040.
What is the Science-Based Targets Initiative (SBTi)?
The Science-Based Targets Initiative (SBTi):
Defines and promotes best practices for emissions reduction and net-zero targets in line with climate science.
Provides companies that set science-based targets in line with the latest climate science findings with technical support and expert resources.
Brings together a team of experts that allows companies to receive an independent assessment and validation of targets.
The SBTi was the lead partner of the “Business Ambition for 1.5°C” campaign: a call to action from a global coalition of UN organizations, companies, and industry leaders that has mobilized companies to set science-based net-zero targets in line with a 1.5°C future.
To avoid the catastrophic effects of climate change, the IPCC has warned that global warming must not exceed 1.5°C.
SBTi and the Paris Agreement
The Paris Agreement is an international treaty on climate change that is legally binding. Its overarching goal is to "maintain the increase in global average temperature to well below 2°C above pre-industrial levels" and to continue efforts to "limit the temperature increase to 1.5°C above pre-industrial levels."
▶︎ For more details on global warming, click here.
The Science-Based Targets Initiative (SBTi) supports the goals of the Paris Agreement by advancing ambitious climate action in the private sector. It allows organizations to set emissions reduction targets based on scientific insights.
Brief Overview of the SBTi Net-Zero Standard
The Corporate Net-Zero Standard of the SBTi is the only framework worldwide for companies to align their net-zero targets with climate science. It provides guidance, criteria, and recommendations for companies to set science-based net-zero targets that are consistent with limiting the global temperature increase to 1.5°C.
What are science-based targets (SBTs)?
Science-based targets provide companies and financial institutions with a clearly defined plan for reducing greenhouse gas emissions, helping to mitigate the most severe impacts of climate change and ensure future business growth.
To meet the goals of the Paris Agreement, which aims to limit global warming to 1.5°C above pre-industrial levels, targets must align with the current climate science findings. When targets align with the latest climate science, they are referred to as "science-based."
Greenland loses about 250 billion tons of land ice each year. The meltwater causes global sea levels to rise by about seven millimeters per decade.
The Importance of Science-Based Targets
The Paris Agreement sets the goal of limiting the global temperature increase to below 2°C above pre-industrial levels. The further goal is to limit the increase to 1.5°C. To avoid the catastrophic effects of climate change, the Intergovernmental Panel on Climate Change (IPCC) has warned that global warming must not exceed 1.5°C. To achieve this goal, greenhouse gas emissions must be halved by 2030 and reduced to zero by 2050. Companies play a crucial role in reducing greenhouse gas emissions and building a resilient, emissions-free economy. These actions need to be scientifically grounded and led by pioneering companies that will help their employees, suppliers, and customers to follow their example and push governments towards bolder actions.
The Benefits of Implementing Science-Based Targets for Your Company
SBTi encourages companies of all industries and sizes to join the movement and commit to setting a science-based target. The SBTi is aware of the differences across business sectors and therefore develops sector-specific pathways.
The SBTi is particularly interested in welcoming companies in the highest-emission sectors, which play a crucial role in ensuring the transition to a carbon-free economy.
Reducing greenhouse gas emissions in line with climate science can benefit both the planet and companies. Science-based target setting is focused on future growth, saves money, makes companies resilient to regulations, strengthens investor confidence, promotes innovation and competitiveness, and demonstrates concrete commitments to sustainability to increasingly conscious consumers. Companies that undergo the target validation process also receive detailed feedback and support from the technical experts of the SBTi.
Signing the SBTi Commitment Letter as a company means immediate recognition as “Committed” on their website, as well as on the websites of the CDP, UN Global Compact, and We Mean Business. These companies have already committed to SBTi and/or have set their targets accordingly.
Companies should plan reduction measures that fit their business profile and contribute to their SBTi targets.
SMEs and SBTi
The global response to climate change will largely depend on small and medium-sized enterprises (SMEs). According to statistics, they account for around 90% of all companies and 50% of all jobs worldwide. These companies are aware of the risks of climate change and are increasingly interested in the opportunities that may arise: to combat climate change.
ℹ️ 🏢 An SME is defined as an independent company without subsidiaries, employing fewer than 500 people.
This does not include financial institutions (FIs) and oil and gas companies (O&G).
SMEs have two options for target setting
Short-term targets:
The Science-Based Targets Initiative (SBTi) encourages companies to set short-term, science-based targets for absolute reducing GHG emissions in Scopes 1 and 2 by 2030, starting from a predefined base year. However, the lack of resources and capabilities to set targets for Scope 3 can pose a challenge for small and medium-sized enterprises (SMEs). Therefore, SMEs are not required to set short-term targets for their Scope 3 emissions. Instead, they must commit to measuring and reducing these emissions — which can still make an important contribution to the overall target of reducing greenhouse gas emissions in line with climate science. This approach allows SMEs to participate in the initiative and make concrete sustainability commitments despite the challenges they may face in setting science-based targets.
Net-Zero targets:
To set a net-zero target, SMEs must first set short-term targets that align with a 1.5°C pathway.
Net-zero targets include:
Long-term, science-based targets, i.e., absolute targets for reducing GHG emissions in Scopes 1, 2, and 3, to be achieved by 2050, starting from a previously defined baseline year.
The commitment to neutralize all unabated emissions when the long-term science-based target is achieved.
What should be made public?
The SBTi recommends disclosing the assessment and progress against the published targets through standardized, comparable data platforms — such as the annual CDP Climate Change questionnaire — but company reports, sustainability reports, and the company website are also acceptable.
How does your company achieve science-based targets?
The “Business Ambition for 1.5°C” campaign is a call to action led by the SBTi, UN Global Compact, and We Mean Business Coalition, urging companies to set emissions reduction targets that align with limiting global warming to 1.5°C.
Companies can commit to the Business Ambition for 1.5°C by signing the net-zero standard and pledging to set a target in line with a 1.5°C and net-zero future. In this way, they are recognized on the websites of the SBTi and UN Global Compact as companies with the most ambitious science-based targets.
Most companies follow this five-step process to set science-based targets:
Commit: Submit a letter expressing your intent to set a science-based target
Develop: Create an emissions reduction target that meets the SBTi criteria
Submit: Submit your target to the SBTi for full validation
Communicate: Announce your target and inform your stakeholders
Inform: Report annually on company-wide emissions and track target progress
Our software has been developed in collaboration with experts to help companies accelerate their emissions reductions.
Global Changer supports you in your commitment to complying with the Science Based Targets! Our software enables you to capture your CO2e emissions in line with your company’s SBTi targets and reduce them by implementing reduction measures that fit your business profile and contribute to your SBTi targets.
The Climate Control Center also serves project management purposes. Sustainability managers or individuals responsible for decarbonizing your company can, for example, assign emissions reduction measures to employees inside or outside the sustainability department and track their actions.
Finally, the platform provides forecasting and overview graphics that help to quickly capture the current status and progress of the company's CO2 reduction. Please feel free to take a look at the tool in a non-binding conversation with our experts.
Put Science Based Targets into action! Download our free Excel template for SBTi-compliant target setting and reduction pathways now.
FAQ
What is a science-based target?
A science-based target (SBT) is a clearly defined plan for reducing greenhouse gas emissions that is in line with the current state of climate science. To meet the goals of the Paris Agreement, which aims to limit global warming to 1.5°C above pre-industrial levels, targets must align with current climate science. When targets align with current climate science, they are referred to as "science-based."
Why science-based target setting?
One of the benefits of setting science-based targets is that they align with future growth, save money, increase resilience to regulations, build investor confidence, promote innovation and competitiveness, and demonstrate concrete commitments to sustainability to increasingly conscious consumers. Additionally, reducing greenhouse gas emissions in line with climate science can benefit both the planet and companies.
Can small and medium-sized enterprises (SMEs) participate in SBTi?
Small and medium-sized enterprises (SMEs) can participate in the Science-Based Targets Initiative (SBTi). The SBTi encourages SMEs to set short-term, science-based targets for absolute reductions in GHG emissions in Scopes 1 and 2 by the year 2030, starting from a previously defined baseline year. However, the lack of resources and capabilities to set Scope 3 targets can pose a challenge for SMEs. Therefore, SMEs are not required to set short-term targets for their Scope 3 emissions. Instead, they must commit to measuring and reducing these emissions, which can still make a significant contribution to the overall goal of reducing greenhouse gas emissions in line with climate science. This approach allows SMEs to participate in the initiative and make concrete sustainability commitments, despite the challenges they may face in setting science-based targets.
How does SBTi contribute to achieving the Paris Agreement?
The Science-Based Targets Initiative (SBTi) supports the goals of the Paris Agreement by advancing ambitious climate action in the private sector. It enables organizations to set emissions reduction targets based on scientific findings. Targets must align with the current state of climate science to be considered "science-based." The Paris Agreement sets the goal of limiting the global temperature increase to below 2°C above pre-industrial levels, with the further goal of limiting the increase to 1.5°C. To achieve this goal, companies must play a crucial role in reducing greenhouse gas emissions and building a resilient, emissions-free economy.
* For ease of reading, we refer to CO2. However, we understand it here more broadly, in the sense of “CO2 equivalents” or CO2e. CO2e is a metric used to measure the climate impact of all greenhouse gases by converting their emissions into an equivalent amount of carbon dioxide based on their global warming potential. In discussions about CO2 reduction in companies, it is generally better to use CO2e because it provides a more comprehensive picture of a company's overall emissions by accounting for not only carbon dioxide but also other significant greenhouse gases like methane and nitrous oxide.
Sources
Science Based Targets initiative. About us. https://sciencebasedtargets.org/about-us#:~:text=The Science Based Targets initiative (SBTi)%3A,with the latest climate science
United Nations Framework Convention on Climate Change. The Paris Agreement. https://unfccc.int/process-and-meetings/the-paris-agreement
Science Based Targets initiative. Net-zero. https://sciencebasedtargets.org/net-zero
Science Based Targets initiative. FAQs. https://sciencebasedtargets.org/faqs#what-are-science-based-targets
Farsan, H. (2020, October 23). Smoothing the way for small and medium-sized businesses to set science-based climate targets. Science Based Targets initiative. https://sciencebasedtargets.org/blog/smoothing-the-way-for-small-and-medium-sized-businesses-to-set-science-based-climate-targets
World Bank. SME finance. https://www.worldbank.org/en/topic/smefinance
Science Based Targets initiative. Small and medium enterprise (SME) target-setting process. https://sciencebasedtargets.org/small-and-medium-enterprise-sme-target-setting-process
Science Based Targets initiative. Step by step process. https://sciencebasedtargets.org/step-by-step-process
Images: Unsplash.com
This article discusses the Science-Based Targets Initiative (SBTi), which defines and promotes best practices for emissions reduction and net-zero targets in line with climate science. The SBTi offers companies that want to set science-based targets aligned with the latest climate science findings technical support and expert resources. The article explains the SBTi’s net-zero standard, science-based targets, and their significance.
All in all: Why your company will benefit from science-based targets, what role small and medium-sized enterprises (SMEs) can play, and how to properly define targets for companies and SMEs. Let’s get started!
ℹ️ 🖥️ Secure your free Excel template for SBTi target setting and reduction pathways now. Choose between three scenarios for net-zero by 2030, 2035, or 2040.
What is the Science-Based Targets Initiative (SBTi)?
The Science-Based Targets Initiative (SBTi):
Defines and promotes best practices for emissions reduction and net-zero targets in line with climate science.
Provides companies that set science-based targets in line with the latest climate science findings with technical support and expert resources.
Brings together a team of experts that allows companies to receive an independent assessment and validation of targets.
The SBTi was the lead partner of the “Business Ambition for 1.5°C” campaign: a call to action from a global coalition of UN organizations, companies, and industry leaders that has mobilized companies to set science-based net-zero targets in line with a 1.5°C future.
To avoid the catastrophic effects of climate change, the IPCC has warned that global warming must not exceed 1.5°C.
SBTi and the Paris Agreement
The Paris Agreement is an international treaty on climate change that is legally binding. Its overarching goal is to "maintain the increase in global average temperature to well below 2°C above pre-industrial levels" and to continue efforts to "limit the temperature increase to 1.5°C above pre-industrial levels."
▶︎ For more details on global warming, click here.
The Science-Based Targets Initiative (SBTi) supports the goals of the Paris Agreement by advancing ambitious climate action in the private sector. It allows organizations to set emissions reduction targets based on scientific insights.
Brief Overview of the SBTi Net-Zero Standard
The Corporate Net-Zero Standard of the SBTi is the only framework worldwide for companies to align their net-zero targets with climate science. It provides guidance, criteria, and recommendations for companies to set science-based net-zero targets that are consistent with limiting the global temperature increase to 1.5°C.
What are science-based targets (SBTs)?
Science-based targets provide companies and financial institutions with a clearly defined plan for reducing greenhouse gas emissions, helping to mitigate the most severe impacts of climate change and ensure future business growth.
To meet the goals of the Paris Agreement, which aims to limit global warming to 1.5°C above pre-industrial levels, targets must align with the current climate science findings. When targets align with the latest climate science, they are referred to as "science-based."
Greenland loses about 250 billion tons of land ice each year. The meltwater causes global sea levels to rise by about seven millimeters per decade.
The Importance of Science-Based Targets
The Paris Agreement sets the goal of limiting the global temperature increase to below 2°C above pre-industrial levels. The further goal is to limit the increase to 1.5°C. To avoid the catastrophic effects of climate change, the Intergovernmental Panel on Climate Change (IPCC) has warned that global warming must not exceed 1.5°C. To achieve this goal, greenhouse gas emissions must be halved by 2030 and reduced to zero by 2050. Companies play a crucial role in reducing greenhouse gas emissions and building a resilient, emissions-free economy. These actions need to be scientifically grounded and led by pioneering companies that will help their employees, suppliers, and customers to follow their example and push governments towards bolder actions.
The Benefits of Implementing Science-Based Targets for Your Company
SBTi encourages companies of all industries and sizes to join the movement and commit to setting a science-based target. The SBTi is aware of the differences across business sectors and therefore develops sector-specific pathways.
The SBTi is particularly interested in welcoming companies in the highest-emission sectors, which play a crucial role in ensuring the transition to a carbon-free economy.
Reducing greenhouse gas emissions in line with climate science can benefit both the planet and companies. Science-based target setting is focused on future growth, saves money, makes companies resilient to regulations, strengthens investor confidence, promotes innovation and competitiveness, and demonstrates concrete commitments to sustainability to increasingly conscious consumers. Companies that undergo the target validation process also receive detailed feedback and support from the technical experts of the SBTi.
Signing the SBTi Commitment Letter as a company means immediate recognition as “Committed” on their website, as well as on the websites of the CDP, UN Global Compact, and We Mean Business. These companies have already committed to SBTi and/or have set their targets accordingly.
Companies should plan reduction measures that fit their business profile and contribute to their SBTi targets.
SMEs and SBTi
The global response to climate change will largely depend on small and medium-sized enterprises (SMEs). According to statistics, they account for around 90% of all companies and 50% of all jobs worldwide. These companies are aware of the risks of climate change and are increasingly interested in the opportunities that may arise: to combat climate change.
ℹ️ 🏢 An SME is defined as an independent company without subsidiaries, employing fewer than 500 people.
This does not include financial institutions (FIs) and oil and gas companies (O&G).
SMEs have two options for target setting
Short-term targets:
The Science-Based Targets Initiative (SBTi) encourages companies to set short-term, science-based targets for absolute reducing GHG emissions in Scopes 1 and 2 by 2030, starting from a predefined base year. However, the lack of resources and capabilities to set targets for Scope 3 can pose a challenge for small and medium-sized enterprises (SMEs). Therefore, SMEs are not required to set short-term targets for their Scope 3 emissions. Instead, they must commit to measuring and reducing these emissions — which can still make an important contribution to the overall target of reducing greenhouse gas emissions in line with climate science. This approach allows SMEs to participate in the initiative and make concrete sustainability commitments despite the challenges they may face in setting science-based targets.
Net-Zero targets:
To set a net-zero target, SMEs must first set short-term targets that align with a 1.5°C pathway.
Net-zero targets include:
Long-term, science-based targets, i.e., absolute targets for reducing GHG emissions in Scopes 1, 2, and 3, to be achieved by 2050, starting from a previously defined baseline year.
The commitment to neutralize all unabated emissions when the long-term science-based target is achieved.
What should be made public?
The SBTi recommends disclosing the assessment and progress against the published targets through standardized, comparable data platforms — such as the annual CDP Climate Change questionnaire — but company reports, sustainability reports, and the company website are also acceptable.
How does your company achieve science-based targets?
The “Business Ambition for 1.5°C” campaign is a call to action led by the SBTi, UN Global Compact, and We Mean Business Coalition, urging companies to set emissions reduction targets that align with limiting global warming to 1.5°C.
Companies can commit to the Business Ambition for 1.5°C by signing the net-zero standard and pledging to set a target in line with a 1.5°C and net-zero future. In this way, they are recognized on the websites of the SBTi and UN Global Compact as companies with the most ambitious science-based targets.
Most companies follow this five-step process to set science-based targets:
Commit: Submit a letter expressing your intent to set a science-based target
Develop: Create an emissions reduction target that meets the SBTi criteria
Submit: Submit your target to the SBTi for full validation
Communicate: Announce your target and inform your stakeholders
Inform: Report annually on company-wide emissions and track target progress
Our software has been developed in collaboration with experts to help companies accelerate their emissions reductions.
Global Changer supports you in your commitment to complying with the Science Based Targets! Our software enables you to capture your CO2e emissions in line with your company’s SBTi targets and reduce them by implementing reduction measures that fit your business profile and contribute to your SBTi targets.
The Climate Control Center also serves project management purposes. Sustainability managers or individuals responsible for decarbonizing your company can, for example, assign emissions reduction measures to employees inside or outside the sustainability department and track their actions.
Finally, the platform provides forecasting and overview graphics that help to quickly capture the current status and progress of the company's CO2 reduction. Please feel free to take a look at the tool in a non-binding conversation with our experts.
Put Science Based Targets into action! Download our free Excel template for SBTi-compliant target setting and reduction pathways now.
FAQ
What is a science-based target?
A science-based target (SBT) is a clearly defined plan for reducing greenhouse gas emissions that is in line with the current state of climate science. To meet the goals of the Paris Agreement, which aims to limit global warming to 1.5°C above pre-industrial levels, targets must align with current climate science. When targets align with current climate science, they are referred to as "science-based."
Why science-based target setting?
One of the benefits of setting science-based targets is that they align with future growth, save money, increase resilience to regulations, build investor confidence, promote innovation and competitiveness, and demonstrate concrete commitments to sustainability to increasingly conscious consumers. Additionally, reducing greenhouse gas emissions in line with climate science can benefit both the planet and companies.
Can small and medium-sized enterprises (SMEs) participate in SBTi?
Small and medium-sized enterprises (SMEs) can participate in the Science-Based Targets Initiative (SBTi). The SBTi encourages SMEs to set short-term, science-based targets for absolute reductions in GHG emissions in Scopes 1 and 2 by the year 2030, starting from a previously defined baseline year. However, the lack of resources and capabilities to set Scope 3 targets can pose a challenge for SMEs. Therefore, SMEs are not required to set short-term targets for their Scope 3 emissions. Instead, they must commit to measuring and reducing these emissions, which can still make a significant contribution to the overall goal of reducing greenhouse gas emissions in line with climate science. This approach allows SMEs to participate in the initiative and make concrete sustainability commitments, despite the challenges they may face in setting science-based targets.
How does SBTi contribute to achieving the Paris Agreement?
The Science-Based Targets Initiative (SBTi) supports the goals of the Paris Agreement by advancing ambitious climate action in the private sector. It enables organizations to set emissions reduction targets based on scientific findings. Targets must align with the current state of climate science to be considered "science-based." The Paris Agreement sets the goal of limiting the global temperature increase to below 2°C above pre-industrial levels, with the further goal of limiting the increase to 1.5°C. To achieve this goal, companies must play a crucial role in reducing greenhouse gas emissions and building a resilient, emissions-free economy.
* For ease of reading, we refer to CO2. However, we understand it here more broadly, in the sense of “CO2 equivalents” or CO2e. CO2e is a metric used to measure the climate impact of all greenhouse gases by converting their emissions into an equivalent amount of carbon dioxide based on their global warming potential. In discussions about CO2 reduction in companies, it is generally better to use CO2e because it provides a more comprehensive picture of a company's overall emissions by accounting for not only carbon dioxide but also other significant greenhouse gases like methane and nitrous oxide.
Sources
Science Based Targets initiative. About us. https://sciencebasedtargets.org/about-us#:~:text=The Science Based Targets initiative (SBTi)%3A,with the latest climate science
United Nations Framework Convention on Climate Change. The Paris Agreement. https://unfccc.int/process-and-meetings/the-paris-agreement
Science Based Targets initiative. Net-zero. https://sciencebasedtargets.org/net-zero
Science Based Targets initiative. FAQs. https://sciencebasedtargets.org/faqs#what-are-science-based-targets
Farsan, H. (2020, October 23). Smoothing the way for small and medium-sized businesses to set science-based climate targets. Science Based Targets initiative. https://sciencebasedtargets.org/blog/smoothing-the-way-for-small-and-medium-sized-businesses-to-set-science-based-climate-targets
World Bank. SME finance. https://www.worldbank.org/en/topic/smefinance
Science Based Targets initiative. Small and medium enterprise (SME) target-setting process. https://sciencebasedtargets.org/small-and-medium-enterprise-sme-target-setting-process
Science Based Targets initiative. Step by step process. https://sciencebasedtargets.org/step-by-step-process
Images: Unsplash.com
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