What is SBTi and why you should set science-based targets

SBTi: What is the Science Based Targets initiative, and what is its goal?

The Science Based Targets initiative, commonly known as SBTi, is an international organization founded in 2015 with the goal of helping companies set emissions reduction targets.

These objectives, or targets, are referred to as ” science-based” because they are based on climate science.

SBTi helps companies set emissions reduction targets based on climate science, using standards, methodologies, and tools that enable companies to translate global climate goals into concrete emissions reduction pathways.

What is the main objective of the SBTi framework?

The mission of the Science Based Targets initiative is to translate the climate goals of the Paris Agreement into specific and measurable targets for companies.

A decarbonization plan approved by SBTi is therefore particularly effective, because it is based on the best available scientific evidence to keep global warming well below 2°C, preferably within 1.5°C, as set out in the Paris Agreement.

A company with SBTi-approved targets demonstrates a concrete commitment to reducing its greenhouse gas emissions in a manner consistent with climate science and the Paris Agreement

From the global partnership to the current Science Based Targets initiative

SBTi was founded through a global partnership of leading organizations committed to sustainability and climate action, including the Carbon Disclosure Project (CDP), the World Wildlife Fund (WWF), the World Resources Institute (WRI), and the United Nations through the Global Compact. Thanks to a team of experts, SBTi is able to calculate the precise amounts of greenhouse gases (GHGs) that must be reduced in each sector to achieve global climate change mitigation goals.

SBTi Goals: What Are Science-Based Targets?

The SBTi sets specific emissions reduction targets tailored to different industrial sectors. It specifies how much companies must reduce their emissions and the timeframe within which they must do so.

These SBTi targets are commonly referred to as science-based targets.

Based on a comprehensive calculation of the company’s carbon footprint, reduction targets are set using one of the target-setting methodologies approved by the SBTi.

The SBTi distinguishes between two main categories of targets:

• near-term targets, which set out the reductions to be achieved over the next 5 to 10 years;
• net-zero targets, that is, long-term goals to achieve net-zero by 2050 (or sooner)

The science-based approach is based on real and direct reductions in emissions throughout the value chain, rather than temporarycarbon offsetting measures.

Offsetting is not included in the definition of science-based targets, so companies cannot use their own carbon credits to meet SBTi targets.

It is, therefore, a long-term strategy aimed at the complete decarbonization of the industrial sector.

The Various SBTi Standards

For most companies, the primary methodological guidelines for setting targets are the Corporate Near-Term Criteria, for short- to medium-term goals, and the Corporate Net Zero Standard, for long-term net-zero goals.

These standards are undergoing a significant transition: in June 2026, the SBTi published the new Corporate Net Zero Standard V2.0, which can be adopted voluntarily starting in 2027 and will become mandatory on February 1, 2028.

There are also several specific guidelines for certain sectors with particularly high emissions, which require their own decarbonization pathways. The main ones are:

• Forest, Land, and Agriculture (FLAG), which addresses emissions related to agriculture, forests, and land use.
• SBTi Buildings, dedicated to the real estate and construction sectors.
• Air Transport, for emissions from air travel;
• Cement, with specific career paths for the cement industry;
• Chemicals, with pathways and criteria specific to the chemical industry;
• Maritime, for maritime transport;
• Land Transport, dedicated to the land transportation of people and goods;
• Steel, for the production of iron and steel;
• Power, for companies involved in the production and sale of electricity.

SBTi and Scopes 1, 2, and 3: Which Emissions Must Be Covered?

SBTi is based on the GHG Protocol, which classifies emissions into Scope 1, 2, and 3.

SBTi targets must cover at least 95% of Scope 1 and 2 emissions. Under the new SBTi standard, this coverage increases to 100%.

SBTi Scope 3: When Is It Mandatory to Account for These Emissions?

Emissions resulting from activities upstream and downstream in the value chain (Scope 3) often account for the largest portion of a company’s overall carbon footprint (and are often the most complex to both calculate and reduce).

Under current criteria, companies are required to set Scope 3 reduction targets if Scope 3 emissions account for at least 40% of total emissions. If this condition is met, near-term targets must cover at least 67% of Scope 3 emissions, while long-term targets must cover at least 90%.

However, this rule no longer applies under the new Corporate Net Zero Standard V2.0, which classifies companies into Categories A and B, each with different requirements.

SBTi Methodology: How Does Target Setting Work?

Let’s now look at the steps needed to develop and implement an SBTi-approved decarbonization plan, setting targets aligned with climate science to achieve Net Zero by 2050.

Step 1: Calculating a Company’s Carbon Footprint

First, collect all data related to your company’s greenhouse gas emissions.

To do this, we follow the GHG Protocol standard, which categorizes emissions into Scope 1, Scope 2, and Scope 3.

Step 2: Choosing a Target-Setting Methodology

Once an organization’s carbon footprint has been determined, the next step is to choose one of the various target-setting methodologies approved by the SBTi:

• Absolute Contraction Approach: an absolute reduction in the company’s greenhouse gas emissions;
• Economic Intensity Approach: reduction in emissions relative to the economic value generated (e.g., metric tons of CO₂ per million euros in revenue).
• Sectoral Decarbonization Approach (SDA): which refers to specific pathways for certain industrial sectors

Step 3: Setting Science-Based Targets

The next step is to set science-based targets to be achieved, in line with the chosen methodology. Near-term targets are mandatory for all companies, while net-zero targets are optional. As we saw above, the new Corporate Net Zero Standard V2.0 introduces significant changes to how Scope 1, 2, and 3 reduction targets are set.

Step 4: SBTi Certification and Validation of Targets

People often talk about “SBTi certification,” even though the term is inaccurate. In fact, it is more accurate to refer to the validation of targets by the SBTi.

Once the targets have been set, they must be submitted to the SBTi using the designated form for review by the SBTi team. Within 6 to 12 weeks, if the targets are deemed appropriate, the company receivesapproval from the SBTi.

The company does not receive corporate certification; rather, it is simply its emissions reduction targets that are validated by the SBTi.

Step 5: Planning and Implementing Actions

In this phase, the steps outlined above are put into practice by planning concrete decarbonization actions. For example: energy efficiency measures, the use of renewable energy, changes to production processes, supplier engagement, and other strategies specific to the organization.

Beyond Value Chain Mitigation: What Does It Mean?

A concept complementary to emissions reduction based on science-based targets is that of Beyond Value Chain Mitigation (BVCM), which refers to emissions reduction actions that extend beyond the value chain.

These are voluntary measures that a company can take after implementing measures to reduce its emissions.

This includes: reforestation projects, carbon capture and storage (CCS), ecosystem conservation, etc. These actions are covered by the SBTi; however, they must be in addition to internal decarbonization and cannot replace it.

To be certified by SBTI, therefore, organizations must implement strategies to directly reduce their own emissions and those of their supply chain. Once these strategies are in place, organizations can make an additional contribution by investing in BVCM, but not to offset their direct responsibilities.

What Is the SBTi Corporate Net-Zero Standard?

In October 2021, the SBTi introduced the Corporate Net-Zero Standard, a global framework that provides a methodology (tools, criteria, and guidelines) to help companies set science-based emission reduction targets.

One of the fundamental principles of the standard is the idea that the Net Zero goal cannot be achieved through emissions offsetting, but only through deep and meaningful reductions in emissions throughout the value chain.

The standard essentially consists of four key points:

1. Short-term goals (5–10 years). Companies must set short-term, science-based targets to rapidly and significantly reduce direct and indirect emissions throughout the value chain. These targets, aimed at halving emissions by 2030, represent the most effective way to limit the global temperature increase to 1.5°C, as set out in the Paris Agreement.
2. Long-term goals (2050 or sooner). In addition to short-term goals, companies must set long-term climate goals to reduce total emissions by more than 90% by 2050. This phased approach, which includes strategies for addressing any unavoidable emissions, is essential for the transition to net-zero emissions in the long term (Net Zero 2050).
3. Offset residual emissions. To achieve the net-zero goal, companies must offset their remaining residual emissions—which cannot be eliminated—using permanent carbon removal technologies. Only after reducing its emissions by 90% and neutralizing its residual emissions can a company claim to be “net-zero.”
4. Beyond the Value Chain (Beyond Value Chain Mitigation, BVCM). Companies are encouraged to contribute to climate mitigation even beyond their direct value chain by investing in climate protection projects. Although such initiatives cannot replace internal efforts to reduce emissions, they represent an additional commitment that strengthens the overall approach to sustainability.

The New Corporate Net-Zero Standard V2.0

The Corporate Net-Zero Standard Version 2.0 was published by SBTi on June 11, 2026, and represents a significant evolution of the framework.

The main change is the greater emphasis placed on the practical implementation of emission reduction targets.

The new version is already available, but companies will continue to use V1.3.1 throughout 2026. Starting February 1, 2027, V2.0 can be applied voluntarily, while as of February 1, 2028, it will become mandatory for all new target submissions to the SBTi. Targets already validated in previous versions remain valid until the end of their time horizon (targets must be reviewed every 5 years).

How can we support you?

SBTi provides companies with a structured, science-based framework for reducing emissions in line with the Paris Agreement: from calculating their carbon footprint to setting medium- and long-term targets, and on to the validation and implementation of their decarbonization plan.

Ollum supports businesses at every stage of this process. We start with measuring a company’s carbon footprint in accordance with the GHG Protocol—an essential prerequisite for initiating the SBTi process—and moving on to the defining and validating science-based targets and the development of the operational decarbonization plan .