What is the Science Based Targets initiative (SBTi)?

Quick Answer: The Science Based Targets initiative (SBTi) is an independent body that defines and validates corporate greenhouse gas reduction targets aligned with climate science. It sets the criteria for what counts as a credible emissions reduction commitment, working backwards from the global carbon budget to determine how much each business needs to cut. A company with an SBTi-validated target has had its reduction plan independently checked against the requirements of the Paris Agreement.

What is the SBTi?

The Science Based Targets initiative (SBTi) is a collaboration between four organisations: the Carbon Disclosure Project (CDP), the United Nations Global Compact (UNGC), the World Resources Institute (WRI), and the World Wide Fund for Nature (WWF). Together, they developed a framework that translates global climate goals into company-level emissions reduction targets.

The core problem SBTi solves is one of credibility. Before it existed, companies could announce net zero commitments with no agreed standard for what that actually meant. SBTi changed that by publishing specific criteria that climate science validates, which a target must meet before it can be called science-based.

The framework is grounded in the Paris Agreement goal of limiting global temperature rise to 1.5°C above pre-industrial levels. SBTi works backwards from the total carbon budget consistent with that goal to set the reduction rates companies in each sector need to achieve.

What does an SBTi-aligned target actually require?

SBTi targets are more demanding than most corporate climate commitments. There are several non-negotiable requirements.

Scope coverage. Targets must cover at least 95% of Scope 1 and Scope 2 emissions. If Scope 3 emissions represent 40% or more of a company's total footprint, a Scope 3 target is also required. In practice, Scope 3 is the majority of emissions for most businesses, so this threshold is frequently triggered. Timeframe. Near-term targets must be achieved within 5-10 years. Long-term targets, which the SBTi Net Zero Standard requires, must reach net zero by 2050 at the latest. There is no credit for vague long-term pledges without a near-term reduction plan. Real reductions only. Carbon offsets do not count towards SBTi near-term targets. The framework requires genuine cuts to emissions, not the purchase of credits to compensate for ongoing emissions. Validation. Companies submit targets to SBTi for independent review. Only after SBTi validates the targets can a company publicly state that they are science-based. This is what separates an SBTi commitment from a self-declared net zero claim.

For Scope 3, companies have three approaches available: absolute reductions (cutting total emissions year-on-year), intensity targets (reducing emissions per unit of output), or supplier engagement targets (requiring a defined proportion of suppliers to set their own science-based targets). These can be combined, provided they collectively cover at least two-thirds of Scope 3 emissions.

Why does SBTi matter for businesses outside large corporates?

SBTi started with large companies but has expanded its reach significantly. The SBTi SME route, introduced to reduce the barrier to entry for smaller businesses, allows companies with fewer than 500 employees to commit to and validate targets through a simplified process.

Beyond the environmental rationale, there are practical commercial reasons why SBTi alignment is becoming relevant for businesses of all sizes.

Supply chain pressure. Large companies with their own SBTi commitments often require their suppliers to set targets too. Supplier engagement is a recognised SBTi Scope 3 strategy, which means your customers may be counting on your commitment as part of their own validated plan. Procurement requirements. Public sector frameworks, including the UK government's PPN 006, require suppliers to demonstrate credible carbon reduction plans. SBTi-aligned targets are one of the strongest ways to evidence this. Investor and stakeholder expectations. Lenders, insurers, and investors increasingly ask for evidence that climate risk is being managed. An SBTi-validated target provides a recognised, third-party-verified answer to that question. Avoiding greenwashing exposure. Regulatory scrutiny of environmental claims is increasing across the UK and EU. A validated SBTi target is one of the most defensible positions a business can take.

How does a company set SBTi-aligned targets?

The process follows a defined sequence, though the complexity of each step depends on the size and emissions profile of the business.

1. Measure your baseline. SBTi targets are set relative to a base year emissions inventory. That inventory needs to be GHG Protocol-compliant and cover all relevant scopes. The quality of this baseline directly affects the credibility of any target set against it. 2. Commit. Companies submit a letter of intent to SBTi, publicly committing to set a validated target within 24 months. 3. Develop targets. Using SBTi's tools and sector-specific guidance, the company calculates the reduction rates required and sets near-term and, where applicable, long-term targets. 4. Submit for validation. SBTi reviews the targets against its criteria. This process typically takes several months. If targets meet the criteria, they are validated and the company is listed on the SBTi website. 5. Report progress annually. Validated targets require annual public disclosure of emissions performance. Companies that fail to report or fall significantly behind their trajectory risk having their targets removed from the SBTi register.

This is where having accurate, consistent carbon data matters most. Seedling's carbon accounting software is built to produce GHG Protocol-aligned footprints across Scopes 1, 2, and 3, with the data quality and documentation needed to support SBTi target-setting and ongoing annual reporting.

What is the difference between an SBTi near-term target and the Net Zero Standard?

These are two distinct but connected commitments, and the distinction is worth understanding clearly.

A near-term science-based target covers the next 5-10 years. It sets the rate at which a company must reduce emissions in the short term to stay on a 1.5°C-aligned pathway. This is the entry-level SBTi commitment and the starting point for most companies.

The SBTi Net Zero Standard goes further. It requires both a near-term target and a long-term target to reach net zero by 2050, with no more than 10% of baseline emissions remaining (to be addressed through permanent carbon removal, not offsets). It also requires companies to neutralise any residual emissions through high-quality carbon removal, not avoidance credits.

The practical implication is that committing to the Net Zero Standard is a significantly larger undertaking than setting a near-term target alone. For most businesses starting out, the near-term target is the right first step, with the Net Zero Standard as the longer-term direction of travel.

The credibility of both rests on the same foundation: a robust, well-documented carbon footprint that holds up to independent scrutiny. Businesses that invest in data quality early are in a much stronger position when it comes to validation, annual reporting, and the inevitable improvement in measurement that comes with each reporting cycle.