Science Based Targets initiative (SBTi)

1. Assess your emissions baseline: Before applying, ensure your organization has a complete greenhouse gas inventory covering Scope 1, 2, and relevant Scope 3 categories, using a recognized methodology such as the GHG Protocol Corporate Standard.

1. Review SBTi criteria and sector guidance: Visit sciencebasedtargets.org to identify which sector-specific pathway and target-setting methodology applies to your industry (e.g., Buildings, Financial Institutions, FLAG for land-based sectors).

1. Set draft targets: Using SBTi's free target-setting tools (such as the SBTi Corporate Manual and sector-specific resources), develop near-term and long-term emissions reduction targets aligned with 1.5°C pathways.

1. Submit a commitment letter: Register your company's intent on the SBTi website by submitting a commitment letter. This places your company on the SBTi "Committed" list and starts a 24-month clock to submit validated targets.

1. Prepare and submit your target validation package: Compile your emissions inventory, target boundary definitions, base year data, and methodology documentation. Submit via the SBTi online portal along with the applicable submission fee.

1. Undergo technical review: SBTi's expert validation team reviews your submission against SBTi criteria. Expect one or more rounds of feedback and revision over several months.

1. Receive validation and publish targets: Once approved, your targets are officially validated and listed on the public SBTi registry. You may now use the SBTi badge in corporate communications and sustainability reports.

1. Maintain annual disclosure: Report progress against your validated targets annually through CDP or equivalent public disclosure mechanisms to maintain your validated status.

SBTi's technical review evaluates whether a company's proposed emissions reduction targets meet the initiative's rigorous criteria across several dimensions. At the core, reviewers assess target ambition and alignment: near-term targets (typically 5–10 years) must be consistent with limiting global warming to 1.5°C, while long-term net-zero targets must align with SBTi's Net-Zero Standard, requiring at least 90–95% absolute emissions reductions by 2050 or sooner.

Emissions boundary and coverage is a critical evaluation area. Scope 1 and Scope 2 targets must cover 95% of a company's total direct and energy-related emissions. For Scope 3, companies with significant value chain emissions (typically where Scope 3 exceeds 40% of total emissions) must set targets covering at least 67% of Scope 3 emissions. Reviewers verify that the base year is appropriately defined, emissions data is complete, and the target boundary is clearly documented.

Methodology and pathway alignment is assessed against SBTi's approved approaches, which vary by sector. For most companies, this includes the Absolute Contraction Approach (ACA) or Sectoral Decarbonization Approach (SDA). Sector-specific pathways exist for buildings, cement, steel, transport, financial institutions, and FLAG (Forests, Land, and Agriculture) sectors, each with tailored criteria. The review also checks that the company is not relying on carbon offsets to meet near-term reduction targets, as SBTi requires genuine operational emissions reductions rather than offset-based accounting.

The Science Based Targets initiative has become the de facto global standard for corporate climate target-setting, with over 10,000 companies having committed to or validated science-based targets as of 2024. This scale — spanning companies in more than 60 countries and representing trillions of dollars in market capitalization — gives SBTi unmatched market authority in the corporate climate space. Major stock exchanges, institutional investors, and ESG rating agencies increasingly treat SBTi validation as a baseline expectation rather than a differentiator, particularly for large-cap companies in carbon-intensive sectors.

SBTi's reputation is strong but not without scrutiny. In 2024, the initiative faced internal controversy when its board temporarily endorsed the use of carbon credits for Scope 3 targets — a position that contradicted SBTi's foundational methodology and triggered significant backlash from staff, scientists, and NGOs. The board subsequently reversed course, reaffirming the primacy of direct emissions reductions. This episode highlighted the governance tensions inherent in a multi-stakeholder initiative operating at global scale, and some critics have raised questions about the rigor of Scope 3 target verification in practice.

Demand for SBTi validation continues to grow, driven by tightening regulatory requirements (including the EU Corporate Sustainability Reporting Directive and SEC climate disclosure rules), investor pressure through frameworks like TCFD and ISSB, and supply chain decarbonization mandates from large buyers. Competing frameworks such as the VCMI Claims Code and CDP disclosure exist, but none offer the same combination of scientific rigor, brand recognition, and third-party validation. SBTi's 2026–2030 strategy signals a shift from target-setting to implementation support, which may further entrench its position as the leading corporate climate standard.

The Science Based Targets initiative was founded in 2015 as a collaboration between four organizations: CDP (formerly the Carbon Disclosure Project), the United Nations Global Compact (UNGC), the World Resources Institute (WRI), and the World Wide Fund for Nature (WWF). It emerged from the recognition that voluntary corporate climate commitments lacked scientific grounding — companies were setting arbitrary emissions reduction goals with no clear link to what climate science required to limit global warming. SBTi was designed to fill this gap by providing a credible, science-aligned methodology for corporate target-setting ahead of the Paris Agreement's adoption in December 2015.

In its early years, SBTi focused on establishing methodologies for near-term targets and building a roster of committed companies. A major milestone came in 2021 with the launch of the Corporate Net-Zero Standard, the world's first science-based framework for corporate net-zero targets, which set requirements for both near-term and long-term decarbonization. By 2022, SBTi had surpassed 3,000 committed companies; by 2024, that figure exceeded 10,000. The initiative has progressively expanded its sector-specific guidance, adding tailored pathways for financial institutions, the FLAG (Forests, Land, and Agriculture) sector, and heavy industry sectors such as steel, cement, and shipping. In 2024, SBTi transitioned to an independent nonprofit structure to strengthen its governance and operational independence from its founding partners.