Understanding SBTi: What are Science-Based Targets? | Explained
Dive into the world of SBTi and learn how businesses are leveraging this term to align with net-zero targets and EU regulations.
Dive into the world of SBTi and learn how businesses are leveraging this term to align with net-zero targets and EU regulations.
If you are a business, this is one term you will constantly come across in various places from multiple partners. Gathering a lot of traction lately, SBTi (Science Based Target Initiative) has been around for quite some time. Still, recently, it has been getting a lot of attention due to the net-zero targets set by the UK government and rising EU regulations. Whether you have just begun your business operations or have been running one long, SBTi (Science Based Target Initiative) will help your business meet the UK Net Zero targets and give it a competitive edge in the current economic landscape. So, without further ado, let’s dive into what science-based Targets are and how your business can benefit from them.
Science-based targets provide companies with a clear path to reducing greenhouse gas (GHG) emissions, helping prevent the worst impacts of climate change and future-proof business growth. These targets are in line with the Paris Agreement goals. Over 6,000 businesses worldwide are already working with the Science Based Targets initiative (SBTi).
Targets are considered ‘science-based’ if they align with what the latest climate science deems necessary to meet the goals of the Paris Agreement - limiting global warming to 1.5°C above pre-industrial levels.
A company's emissions data is calculated accurately using GHG protocol conversion factors.
A private sector organisation must play a fundamental role in reducing GHG emissions. Embedding science-based targets in sustainability management is crucial for businesses. Knowing your current carbon emissions at Scope 1 and 2 is crucial, as is planning to calculate Scope 3 emissions.
Companies, financial institutions and SMEs are eligible to set science-based targets. The SBTi is especially keen to welcome companies in the highest-emitting sectors, which play a pivotal role in ensuring the transformation to a zero-carbon economy.
Companies must register for an account using the new SBTi Services Validation Portal before committing or submitting targets for validation. This registration step will confirm whether your company can commit to setting targets and, if so, whether it is classified as an SME, financial institution, or corporate.
Companies who have previously set targets or commitments must complete the registration step.
Commitments are optional.
You can skip the commitment stage if your corporate or financial institution is ready to validate.
If you are an SME, then you are not eligible to set commitments, so please proceed straight to the Develop stage. (To know the SME criteria, scroll down)
Develop your targets using Science Based Targets initiative standards, criteria and guidance.
Emissions inventory: Calculate a complete greenhouse gas (GHG) inventory across your businesses' scopes 1, 2 and 3 in alignment with the Greenhouse Gas Protocol before developing your targets in line with the SBTi’s current science-based criteria.
Review key resource: For an overview of the target development process, you are advised to begin with the SBTi Getting Started Guide.
Target-setting tools: Corporates and financial institutions should model and submit their targets using the Science Based Targets initiative’s target-setting tools and relevant sector-specific tools where available from the SBTi.
To submit your targets for validation, you will need a registered account on the SBTi Services Validation Portal - see the Register step above.
Prepare your target submission forms and submit them to SBTi Services to start your validation. This includes your decarbonisation plan and company financials for verification.
Target submission: To have your science-based target validated and published on the Science Based Targets initiative's website:
Announce your target and inform your stakeholders.
Annually disclose progress made towards your science-based targets.
Once your target is approved, your organisation must disclose emissions annually and monitor progress towards achieving your targets.
Reporting recommendations include annual reports, sustainability reports, your company's website, disclosure via CDP or CSRD, or any other publicly available statement.
Refer to Annex D of the Corporate Net-Zero Standard for guidance.
Businesses in almost all sectors are encouraged to set science-based targets. The current exception is companies in the fossil fuel sector, which can temporarily not commit to or validate targets while sector guidance is being developed.
SBTi Services provides tailored target validation services for corporates and financial institutions. Specific Science Based Targets initiative sector standards, criteria, and tools are available for financial institutions and many heavy-emitting industries.
Cities, local governments, public sector institutions, educational institutions, and non-profit organisations cannot submit targets for validation but are encouraged to consider science-based target-setting methods to reduce their emissions. Cities can develop targets through the Science Based Targets Network. Companies unsure of their eligibility for science-based targets validated by SBTi Services may submit a registration for review.
The SME target validation route enables eligible businesses to bypass the initial stage of committing to set a science-based target and the standard validation process. Companies meeting the SME eligibility criteria can choose to set targets through the SME validation or corporate routes.
Companies must meet the eligibility criteria outlined below to use the SME validation route. Eligibility will be confirmed during the registration stage
Near-term science-based targets are absolute scope 1 and 2 GHG emissions reduction targets that should be achieved by 2030 from a predefined base year. SMEs often lack the resources and capabilities needed to set scope 3 targets. Because of this, SMEs are not required to set near-term targets for their Scope 3 emissions. Instead, they must commit to measuring and reducing these emissions.
Enable companies with zero scope 1 and/or 2 emissions to sustain their efforts and continuously improve. SMEs choosing this option must follow GHG Protocol standards, report their progress annually, and provide supporting documentation for target validation. Additionally, they can select the maintenance approach that aligns with their specific emissions profile.
To be eligible to set a net-zero target, SMEs must first set near-term targets aligned to a 1.5°C pathway.
Net-zero targets include:
If your business requires support or wants guidance on SBTi (Science Based Target Initiative), call us at +44 (0)1788 538150, and one of our experts will assist you.