What is SBTi?

The Science-Based Targets Initiative (SBTi) is a globally recognised framework that helps companies set and achieve emissions reduction goals. These goals are based on the latest climate science which aims to drive ambitious corporate climate action by aligning business targets with the Paris Agreement’s goal to limit global warming to 1.5°C or well below 2°C above pre-industrial levels.

Founded by the Carbon Disclosure Project, the United Nations Global Compact, the World Resources Institute, and the World Wildlife Fund, the SBTi provides methodologies, resources, and an independent validation process to ensure targets are credible, science-based, and impactful. By adopting SBTi-approved targets, organisations show their commitment to shifting their operational practices to reduce the effects of climate change. 

How Science-Based Targets Work

The SBTi process provides a step-by-step framework for organisations to reduce their GHG emissions:

1. Baseline Emissions Measurement: Companies start by measuring their current emissions footprint across three categories: Scope 1 (direct emissions), Scope 2 (indirect emissions from purchased energy), and Scope 3 (indirect emissions from the value chain). In this first step, accurate data collection is of utmost importance to set realistic targets. 
2. Target Setting: Once a baseline has been determined, SBTi methodologies are used to calculate a company’s reduction targets. These targets should align with global carbon budgets and sector-specific decarbonisation pathways.
3. Validation by SBTi: Targets are then submitted to the SBTi for independent validation. These steps ensure that the goals meet its criteria for ambition and alignment with the Paris Agreement.
4. Implementation and Reporting: Once the targets have been approved and validated, companies can then implement strategies to reduce emissions and transparently report progress. 

Scopes of Science-Based Targets

SBTi requires companies to address their entire greenhouse gas (GHG) emissions footprint, categorised into three scopes:

1. Scope 1 (Direct Emissions):
   These are emissions directly generated by company-owned or controlled operations. Examples include fuel combustion in vehicles and emissions from on-site manufacturing facilities.
2. Scope 2 (Indirect Emissions from Energy):
   This category includes emissions from purchased energy, such as electricity, steam, or heating and cooling. Transitioning to renewable energy sources or improving energy efficiency are common strategies to address Scope 2 emissions.
3. Scope 3 (Value Chain Emissions):
   Often the largest source of emissions, Scope 3 covers indirect emissions occurring across a company’s value chain. These include emissions from upstream suppliers, product use by customers, business travel, waste disposal, and more. While Scope 3 measurement can be complex, addressing these emissions is crucial for achieving meaningful climate impact.

Science-Based Targets vs. Traditional Emissions Goals

Science-based targets differ significantly from traditional emissions goals by focusing on metrics that are measurable and align with global climate objectives: 

• Science-Aligned: Unlike traditional targets, which may be arbitrarily set, SBTi targets are grounded in climate science and carbon budgets. 
• Comprehensive: Science-based targets require companies to address emissions across all scopes (1, 2, and 3), whereas traditional goals often focus only on direct emissions.
• Future-Oriented: SBTi targets align with long-term global temperature goals, ensuring businesses contribute to limiting warming to 1.5°C or well below 2°C.
• Validated: Science-based targets are independently reviewed and approved by the SBTi, offering credibility and assurance to stakeholders.

The Benefits of Science-Based Targets

Adopting science-based targets enables companies to:

• Ensure Regulatory Compliance: Science-based targets help organisations stay ahead of ever-changing environmental regulations. This reduces the risk of penalties and ensures alignment with global standards.
• Boost Operational Efficiency: By optimising processes, companies can lower energy use, reduce resource consumption, and achieve significant cost savings.
• Increase Market Appeal: Showing a commitment to sustainability attracts environmentally conscious investors, customers, and partners. 
• Strengthen Stakeholder Confidence: Validating targets through a trusted initiative like the SBTi builds credibility and fosters trust among stakeholders.