SBTi: How it Works and Why Your Business Should Set One

What is the SBTi?

The Science Based Targets initiative (SBTi) is a corporate climate action organization enabling companies to establish greenhouse gas emissions reduction targets aligned with climate science. These targets support keeping global warming below catastrophic levels and achieving net-zero by 2050.

The initiative references the Paris Agreement, an international treaty adopted in 2015 that aims to "limit global warming by keeping the global average temperature to below 2 degrees celsius above pre-industrial levels." Businesses play a critical role in reducing emissions, and the SBTi was established to mobilize the private sector and teach companies how much emissions reduction is necessary to prevent severe climate impacts.

To meet Paris Agreement goals, global GHG emissions must halve by 2030 and reach net-zero by 2050.

How do SBTis work?

Targets are considered "science-based" when they align with latest climate science needed to meet Paris Agreement goals, currently limiting global warming to 1.5°C above pre-industrial levels. Companies worldwide of any size can establish tailored SBTis. The process involves:

• Register at SBTi Services
• Commit to a long-term goal (optional for some institutions)
• Develop targets using SBTi standards after calculating complete GHG inventory across scopes 1, 2, and 3
• Submit targets for validation and publication
• Communicate targets to the public within six months of validation
• Disclose progress annually through reports and public statements

Why should my business set an SBTi?

Setting SBTi demonstrates corporate commitment to climate action. Beyond environmental benefits, companies gain:

• Brand Reputation: Consumers increasingly value environmental sustainability in purchasing decisions
• Investor Confidence: Environmental policies strengthen long-term business credibility
• Resilience Against Regulations: Staying ahead of increasingly ambitious government regulations
• Increased Innovation: Climate targets drive creative solutions for carbon-neutral operations
• Cost Savings: Ambitious targets streamline operations and improve profitability
• Competitive Edge: Innovation and improved efficiency position companies for success in a low-carbon economy