The Science Based Targets initiative (SBTi) is a global organisation that drives corporate climate action by empowering companies and financial institutions to contribute effectively to addressing the climate crisis.
The SBTi create standards, tools, and resources to enable businesses to set greenhouse gas (GHG) emission reduction targets that are aligned with scientific recommendations. These targets aim to prevent catastrophic global warming and achieve net-zero emissions by 2050 – at the latest.
Operating as a UK-registered charity, the SBTi also includes its subsidiary, SBTi Services Limited, which oversees target validation services (collectively referred to as the “SBTi Group”). The growth and success of the Science-Based Targets initiative are supported by key partner organisations, including CDP, the United Nations Global Compact, the We Mean Business Coalition, the World Resources Institute (WRI), and the World Wide Fund for Nature (WWF).
With the SBTi standard requiring companies to target a 90% reduction in their emissions, many companies have found it difficult to achieve this, particularly for Scope 3 emissions. As a result, the SBTi are due to confirm whether carbon offsetting can be utilised to support this, with a decision due to be announced during 2025.
What is meant by ‘science-based target?’
A science-based target (SBT) is a specific and measurable goal for reducing greenhouse gas (GHG) emissions, designed to align with the latest climate science and the goals of the Paris Agreement. The Paris Agreement seeks to limit global warming to well below 2°C above pre-industrial levels, while pursuing efforts to limit it to 1.5°C.
Once an organisation has defined a SBT, this can be sent to the SBTi Group for validation.
How to set science-based targets: A step-by-step guide
Register
As of October 29, 2024, all companies are required to create an account on the SBTi Services Validation Portal before making a commitment or submitting targets for validation. This registration step determines your company’s eligibility to set science-based targets and classifies it as an SME, financial institution, or corporate.
Commit
Submit a formal letter expressing your intent to set a science-based target. While commitments are optional, they can be skipped if your corporate entity or financial institution is ready to move directly to validation. Note: SMEs are not eligible to make commitments.
Develop
Create your targets using the standards, criteria, and guidance provided by the Science Based Targets initiative (SBTi). Resources are available on the SBTi website to assist with this process.
Submit
Complete the target submission forms and upload them via the Validation Portal to initiate the SBTi validation process.
Communicate
Once validated, publicly announce your targets and share them with your stakeholders to demonstrate your commitment to climate action.
Disclose
Report your progress annually, detailing achievements and updates toward meeting your science-based targets.
By following these steps, your organisation can contribute to global climate goals while aligning with best practices for sustainability and accountability.
Key features of science-based targets
Scientific alignment
Targets are based on rigorous scientific research and methodologies, ensuring they contribute meaningfully to reducing global emissions.
Specific and measurable
Clear, quantifiable goals, often expressed as a percentage reduction in emissions over a specified timeline (e.g., reducing GHG emissions by 50% by 2030).
Covers different emission scopes
- Scope 1: Direct emissions from owned or controlled operations.
- Scope 2: Indirect emissions from purchased electricity, heating, or cooling.
- Scope 3: All other indirect emissions in the value chain, including supply chain and product use.
Ambition levels
Targets can align with pathways to limit warming to 1.5°C (most ambitious) or well below 2°C.
Validation by SBTi
Targets are often validated by the Science-Based Targets initiative (SBTi), which ensures they meet rigorous criteria and global best practices.
Why science-based targets matter for your business
Science-based targets demonstrate:
- Climate leadership
Demonstrates a company’s commitment to addressing climate change effectively. - Risk reduction
Prepares businesses for evolving regulations, market expectations, and climate-related risks. - Stakeholder trust
Builds credibility with investors, customers, and partners focused on sustainability. - Innovation and efficiency
Drives resource efficiency and encourages innovative solutions to reduce emissions.
What is the Corporate Net-Zero Standard?
The Corporate Net-Zero Standard provides organisations with framework to set science-based net-zero targets.
The standard was first launched in October 2021 and was developed through comprehensive stakeholder input and collaboration with the Net-Zero Expert Advisory Group. It outlines the essential requirements companies must meet to have their net-zero targets validated by the SBTi. The criteria also include recommended practices to ensure transparency and align with industry best standards. It’s important to note that these criteria and recommendations are dynamic and may be updated periodically.
These guidelines apply to companies excluding financial institutions and small and medium-sized enterprises (SMEs). Financial institutions are required to follow the Financial Sector Science-based Targets Guidance, while SMEs can choose either the SME validation route or the standard validation process for setting their targets.
Can we help your organisation with your energy and sustainability ambitions?
Our team specialise in sustainability solutions, assisting with compliance, maximising carbon savings and supporting organisations to achieve their net-zero targets.
We can provide guidance and support on ESOS, SECR, carbon offsetting and 100% renewable energy. Our objective is to take the pressure off you and provide a seamless service that will ultimately benefit your organisation.
If you would like to arrange a free consultation with one of our energy specialists to discuss how we can assist you with your sustainability and/or energy solutions, please contact us.
We hope you have found this blog both interesting and valuable. Feel free to share your thoughts or questions on this via email at info@consultivutilities.com.
Categories: