For many companies, the phrase “Science Based Targets initiative” (SBTi) can trigger a mix of urgency and anxiety. On client calls, we often hear the same concerns: Where do we start? What’s required? How do we make sure we do it right?
At 3R Sustainability, one of our favorite moments is seeing that stress melt away once clients understand the process and the value behind it. In this article, we review the SBTi framework, explain why it matters, and share common challenges and how to overcome them.
What is the Science Based Targets initiative?
The Science Based Targets initiative (SBTi) is a global partnership between the World Resources Institute (WRI), the World Wide Fund for Nature (WWF), and CDP.
Its mission? To help companies and financial institutions set greenhouse gas (GHG) reduction targets that align with the latest climate science and the goals of the Paris Agreement—keeping global warming below 1.5°C above pre-industrial levels.
In short, SBTi gives organizations a clear, actionable roadmap to decarbonize in line with what the planet needs—not just what’s convenient.
Why Commit to SBTi? The Business Case
While SBTi targets are rooted in science, their benefits extend far beyond emissions data. Companies across the globe are using SBTi to strengthen resilience across their supply chains. One path to achieving Scope 3 targets is by engaging suppliers to set their own Scope 3 target, which is driving increased demand for SBTs. According to SBTi research:
- 79% of executives said their SBTi commitment strengthened brand reputation
- 52% reported increased investor confidence
But that’s just the beginning. Here are a few more reasons to consider aligning your company’s climate goals with SBTi:
- Build Brand Trust: Consumers, B2B customers, and investors are paying attention. An SBTi commitment demonstrates credibility and transparency, signaling that your organization is serious about measurable climate action.
- Stay Ahead of Regulation: With climate-related regulations expanding globally, companies that set science-based targets now are better prepared for future disclosure requirements.
- Drive Innovation: Transitioning to a low-carbon economy fosters innovation across operations, product design, and supply chains. Companies that adapt early are better positioned to thrive in a sustainable future.
- Realize Financial Savings: Energy efficiency, resource optimization, and material/waste reductions all lead to tangible cost savings—benefiting both the bottom line and the planet.
The Process: How to Set Science-Based Targets
Setting an SBTi-aligned target follows a defined process—but it doesn’t have to be overwhelming.
Here’s a simplified overview:
- Register with SBTi services.
- Create an account and submit company details.
- (Optional) Announce your company’s intention to submit a science-based target.
- Develop your target.
- Calculate your GHG baseline inventory (Scopes 1, 2, and 3 as applicable).
- Use SBTi tools to model potential targets and ensure they meet the required criteria.
- Submit for validation.
- SBTi’s technical team reviews your target and provides detailed feedback.
- Communicate publicly.
- Once approved, publish your targets and share progress annually through channels like CDP or your sustainability report.
Simplified Path for SMEs
Small and medium enterprises (SMEs) with annual emissions below 10,000 metric tons of CO₂e and meet three or more of the criteria may take a streamlined route to set science-based targets.
Near-Term vs. Net-Zero Targets
Near-term and net-zero targets serve different but complementary purposes in climate action. Knowing how they differ helps organizations plan both immediate reductions and long-term goals.
| Target Type | Time Frame | Focus | Scopes Included | Offsets? |
|---|---|---|---|---|
| Near-Term | 5–10 years | Immediate emissions reductions | 1 and 2, 3 (if ≥40% of total emissions) | Not allowed |
| Net-Zero | By 2050 or earlier | Deep, long-term decarbonization | 1, 2, 3 | Allowed for residual 5–10% |
Common Challenges—and How to Overcome Them
Every organization’s sustainability journey is unique, but a few hurdles come up time and again:
1. Incomplete or Inconsistent Data
Collecting accurate data especially for Scope 3 emissions can be daunting.
Our advice: Conduct a data readiness assessment, establish clear ownership for data collection, and engage suppliers early through sustainability-linked procurement.
2. Meeting SBTi Validation Criteria
Targets can be rejected if scope 3 categories are missing or timelines fall outside the 5–10-year range.
Our approach: We review the full SBTi criteria, map every emissions source, and perform internal audits before submission to minimize surprises during validation.
3. Understanding Organizational Boundaries
SBTi validators often flag confusion around subsidiaries and acquisitions.
Tip: Ensure all relevant entities are included in your baseline—and note that subsidiaries can set more ambitious targets than their parent company, but not less.
What’s Changing: The Draft Net-Zero Standard v2.0
SBTi’s next-generation Net-Zero Standard is currently under public consultation. Though not finalized, it signals a push toward greater rigor and clarity. Key proposed changes include:
- New company categories (A & B): Based on size and geography, with differing levels of flexibility.
- Mandatory third-party assurance of base-year inventories for large (Category A) companies.
- Separate targets for each scope: Scope 1, Scope 2 (both location-based and market-based), and Scope 3.
- Expanded metrics: Beyond emissions alone—considering supplier engagement and low-carbon procurement.
The new standard is likely a year or more away, with further revisions to come. Companies with existing approved targets won’t need to update them immediately; they’ll transition once current commitments expire.
Looking Ahead
Setting science-based targets is a strategic decision that positions your organization for long-term resilience and leadership in a low-carbon world.
At 3R, we help companies simplify the complex, from calculating greenhouse gas inventories to supporting with the SBTi validation support to creating decarbonization roadmaps to help your company achieve the targets you set. Whether you’re an SME taking your first step or a multinational preparing for net zero, we’re here to guide you every step of the way.
Ready to get started?
Connect with our climate consulting team through our contact form. Let’s turn climate goals into measurable, science-based action.