SBTi

What it means

SBTi, the Science Based Targets initiative, validates whether a company's greenhouse gas reduction targets are in line with the science on limiting global warming. The company submits its targets and the initiative assesses whether they are sufficiently ambitious and methodologically sound.

Validated targets cover Scope 1 and 2 emissions and, where indirect emissions are significant, Scope 3 too. The initiative distinguishes near-term targets over roughly ten years from long-term net-zero targets, under which most reductions must be real rather than achieved through offsets.

Validated targets are more credible than a company's own pledges because an independent organisation has assessed them against a published methodology. They often underpin the climate transition plan and reporting under the CSRD.

How it works in practice

Large customers increasingly ask suppliers for validated targets because they need to cut their own Scope 3 emissions. For a mid-sized supplier, that means mapping its emissions, setting targets and taking real action so as not to lose contracts.

A streamlined route with reduced requirements exists for small and medium-sized enterprises, making validation quicker and cheaper. Even so, it requires a reliable emissions inventory and a commitment to report progress regularly.

Once validated, the company publishes its targets and reports progress annually. Targets must be updated when the methodology or the company changes, for example after an acquisition. Meeting them requires investment in energy, technology and supplier engagement.

What to watch out for

Announcing an SBTi commitment before the targets are validated is risky. A claim that the company has science-based targets must be true, otherwise it is greenwashing, which new consumer protection rules penalise.

Validation is only the beginning. Companies that set targets but do not act risk losing the trust of investors and customers. Progress is tracked publicly, and missing targets without explanation is visible.