The Science Based Targets initiative (SBTi) is a corporate climate action organization that empowers companies and financial institutions globally to play a role in combating the climate crisis. It is a collaboration between CDP, the United Nations Global Compact, World Resources Institute (WRI), and the World Wide Fund for Nature (WWF).
The primary goal of SBTi is to drive ambitious climate action in the private sector by enabling companies to set greenhouse gas (GHG) emissions reduction targets in line with the latest climate science. These targets aim to limit global warming to 1.5°C above pre-industrial levels, as outlined in the Paris Agreement.
Any organisation, government body, or individual can set a science-based target aligned with the latest climate science.
For corporates, the SBTi is the internationally recognised certifying body and provides specific guidance. Small to Medium Enterprises (SMEs) have a simplified validation process. Financial institutions can also set SBTs through the SBTi.
Currently, the SBTi does not validate or provide guidance for cities, local governments, public sector institutions, educational institutions, or non-profit organizations, although the Science Based Targets Network (SBTN) offers guidance for these entities and for nature-related targets.
The SBTi has a structured 6-step process for companies to set science-based targets:
Organisations must register for an account using the new SBTi Services Validation Portal.
Submit a letter of intent to set a science-based target. Commitments are now optional. If the corporate or financial institution is ready to proceed with validation, the company can skip the commitment stage.
For SMEs, this involves completing an online form. This step requires executive or board-level buy-in and internal approval to allocate resources.
Companies have 24 months after committing to complete the subsequent steps.
Work on an emissions reduction target that aligns with SBTi's criteria.
This involves using SBTi's tools and guidance, considering the global carbon budget, emissions scenarios, and allocation approaches.
For SMEs, targets are often automatically set through their online tool20 . Companies should check for sector-specific guidance. If none exists, the cross-sector pathway (absolute contraction) can be used.
Present the developed target to the SBTi Services Validation Portal for official validation.
This involves submitting relevant forms and potentially paying a validation fee (which varies based on company size and target type). SMEs submit through their online form.
Note: SBTi Services is the wholly owned subsidiary of its parent, the Science Based Targets initiative, which helps standards for businesses to reduce their greenhouse gas emissions in line with science.
Announce the validated target to stakeholders. The SBTi also publicly lists companies with validated targets.
Report on company-wide emissions and progress against the target on an annual basis.
The SBTi primarily uses two common approaches :
What are other target setting methods? Additional methods include :
The sources do not explicitly mention a scoring system in the same way as CDP. The SBTi validates if a company's targets are science-based according to their criteria.
Successful validation leads to public recognition.
Currently, setting SBTs is largely voluntary. However, it can help organisations prepare for potential future mandatory reporting.
The benefits of setting SBTs include:
The SBTi was founded by CDP, WRI, WWF, and the UN Global Compact.
Key stakeholders include:
The SBTi ensures the quality and comparability of targets through:
Targets are submitted to SBTi Services, a separate target validation entity, through its Validation Portal for assessment.
A validation process by SBTi Services’ technical experts, providing feedback and support.
The SBTi is continuously evolving, with recent developments including:
Historically, sustainability reporting (including emissions and targets) has been largely voluntary and often presented in separate reports or as part of annual reports. The term ESG reporting has become synonymous with sustainability reporting. Several frameworks exist for ESG reporting, including GRI, CDP, CDSB, SASB, and TCFD (now replaced by ISSB).
The International Sustainability Standards Board (ISSB) is developing global sustainability reporting standards, building on existing frameworks, which are becoming mandatory in some regions (like Australia with AASB S2).
Most reporting frameworks recommend reporting on emissions and setting targets, including under the ISSB’s S2 standard.
In this context, SBTs could be communicated in corporate sustainability or ESG reports, which are increasingly expected by stakeholders and becoming mandatory in some regions with the adoption of standards like those from the ISSB. Organisations should also disclose their SBTs on their websites and in other relevant communications. Annual reporting of emissions and progress against SBTs is considered best practice, regardless of SBTi validation status.
Alignment with Other Frameworks
The broader landscape of sustainability reporting frameworks, including GRI, CDP, SASB (now integrated into ISSB), and TCFD (now succeeded by ISSB), all emphasise the importance of emissions reduction and target setting, and SBTs provide a science-based approach to this. The ISSB's S2 standard also recommends reporting on emissions and setting targets .
Science Based Targets initiative (SBTi) Website: https://sciencebasedtargets.org/
SBTi Criteria: https://sciencebasedtargets.org/resources/files/SBTi-criteria.pdf
SBTi Target Validation Service Offerings (Pricing): https://sciencebasedtargets.org/resources/files/SBTi-Target-Validation-Service-Offerings.pdf
SBTi Services: https://sbtiservices.com/
SME Target Setting Process: https://sciencebasedtargets.org/small-and-medium-enterprise-sme-target-setting-process
SBTi Sectoral Guidance: https://sciencebasedtargets.org/sectors
Companies Taking Action (Target Dashboard): https://sciencebasedtargets.org/target-dashboard
Science Based Targets Network (SBTN): https://sciencebasedtargetsnetwork.org/our-mission/
Global Carbon Budget: https://globalcarbonbudget.org/
UN Paris Agreement: https://www.un.org/en/climatechange/paris-agreement
IPCC Reports: https://www.ipcc.ch/assessment-report/ar6/
RE100: https://www.there100.org/
