The 'Science Based Targets initiative (SBTi)' is a global climate framework that helps companies set emission reduction targets aligned with the latest climate science. Established in 2015 by CDP, UN Global Compact, WRI, and WWF, SBTi’s mission is to ensure corporate climate strategies align with the Paris Agreement, limiting global warming to 1.5 °C above pre-industrial levels.
As of 2025, over 10,000 companies have committed to the SBTi framework, and more than 8,300 have validated their targets—making SBTi the world’s leading standard for corporate decarbonization.
How Does SBTi Work?
SBTi guides companies through a structured five-step process:
1. Commitment Phase
A company submits a formal commitment letter to SBTi, publicly stating its intention to set science-based targets within 24 months. This commitment is published on SBTi’s website.
2. Target Development
The company assesses its Scope 1 (direct), Scope 2 (energy), and Scope 3 (value chain) emissions. Using SBTi tools and sector-specific guidance—such as for finance, steel, or food—it sets reduction pathways that meet 1.5 °C criteria.
3. Validation Submission
Targets are submitted for expert review by SBTi Services. Key review areas include:
Emissions coverage (must include >67% of Scope 3 if material)
Ambition level (1.5 °C vs 2 °C pathway)
Sector alignment and timeline feasibility
4. Approval and Communication
If the targets pass validation, the company receives an approval certificate and may use the “SBTi-approved” label in reports, websites, and stakeholder materials.
5. Annual Disclosure and Tracking
Companies must publicly disclose GHG emissions and target progress every year (often through CDP), maintaining transparency and driving continuous improvement.
SBTi also supports companies through training, FAQs, and guidance documents to navigate the process.
What Are the Benefits for Companies?
Setting SBTi-aligned targets offers both environmental and business value:
1. Climate Leadership and Credibility
SBTi approval shows that climate goals are backed by science—not marketing. This builds trust with investors, regulators, and customers.
2. Regulatory Readiness
SBTi targets help companies prepare for incoming ESG regulations, including:
EU’s CSRD
IFRS S2
US SEC disclosure requirements
Early alignment reduces future compliance risk and costs.
3. Operational Cost Savings
Decarbonization efforts often improve efficiency—optimizing logistics, reducing waste, and lowering energy bills.
4. Innovation and Market Differentiation
Science-based targets drive innovation in low-carbon products, supply chains, and renewable energy adoption—enhancing long-term competitiveness.
5. Supply Chain Advantage
SBTi-verified companies are more likely to be selected by procurement leaders like Apple, Unilever, and Walmart, who prioritize sustainable suppliers.
6. Access to Green Finance
SBTi status improves eligibility for green bonds, ESG funds, and sustainability-linked loans—offering better capital access.
7. Employee and Stakeholder Engagement
Clear climate goals improve internal alignment and inspire purpose-driven talent, especially among younger employees.
Recent Updates: What’s New in 2025?
SBTi released version 2.0 of its 'Net-Zero Standard' in April 2025. Key updates include:
Mandatory separate targets for Scope 1 and Scope 2
Limited use of carbon offsets only for residual emissions
Enhanced transparency on Scope 3 reporting
These changes strengthen climate accountability and reflect evolving science.
Conclusion
SBTi gives companies a scientifically credible pathway toward net-zero. In an era of climate risk, regulatory scrutiny, and rising expectations from consumers and investors, aligning with SBTi isn’t just good for the planet—it’s smart for business.