Science-based targets for your business: Are you aligned with 1.5°C?

As climate risks intensify and stakeholder expectations rise, companies face the challenge of defining their environmental commitments in more than words. In addition to reducing greenhouse gas emissions, setting science-based targets strengthens credibility and resilience and unlocks competitive advantages in a low-carbon economy.

What is SBTi?

The Science-Based Targets initiative (SBTi) is a global corporate climate action organisation that provides companies with a framework to set greenhouse gas (GHG) emissions reduction targets aligned with the latest climate science. Its standards, tools, and guidance help ensure corporate climate goals consistently limit global warming to 1.5°C and achieve net-zero emissions by 2050 at the latest, as urged by the Paris Agreement.

Why set targets with SBTi?

In a context where stakeholders increasingly expect credible and transparent climate action, SBTi offers a trusted path to align business strategies with science and build long-term resilience. According to SBTi, over 10.000 companies have committed to SBTi.

Companies set targets with SBTi for multiple reasons:

Regulatory compliance

Setting SBTi-aligned targets helps companies meet the growing requirements of climate-related regulations. For instance, under the European Sustainability Reporting Standards (ESRS E1) as part of the Corporate Sustainability Reporting Directive (CSRD), companies are expected to define climate transition plans that align with 1.5°C or 2°C global warming scenarios.

Competitive advantage and risk mitigation

Companies with validated SBTi targets are often seen as leaders in corporate sustainability and have a significant edge over competitors who lag in climate action. This leadership can influence consumer preferences, improve B2B supplier evaluations, and open doors to strategic partnerships.

Investor and consumer pressure

Both investors and customers increasingly demand climate accountability from the companies they support. Large institutional investors, guided by ESG (Environmental, Social, Governance) criteria, are reallocating capital towards companies with transparent, science-based climate strategies.

Potential cost savings and innovation opportunities

Pursuing science-based decarbonisation targets can lead to significant operational efficiencies. For instance, energy efficiency improvements, renewable energy adoption, and process optimisation often result in lower energy bills, reduced waste, and more resilient operations. In addition, the process of meeting SBTi targets often encourages companies to rethink their products, services, and value chains, leading to innovation and long-term value creation.

How does it work?

SBTi offers a step-by-step process. After publicly committing to SBTi with a commitment letter, you develop your reduction targets and have 24 months to submit them to SBTi. Then, SBTi will validate the targets through an audit process, and your target will be disclosed on the website of SBTi.

Source: Science-based targets initiative

The SBTi target rules from the Net-Zero Corporate Standard can be summarised as described in the table below. SBTi also holds sector standards for the agricultural sector (FLAG), buildings, financial institutions, etc. These sector-specific standards define tailored requirements for SBTi targets, which may differ from the general guidelines outlined below.

Common challenges and how to overcome them

Setting SBTi-aligned targets can be challenging due to the complexity of accurately calculating GHG emissions and the uncertainty surrounding long-term climate scenarios. Since it's impossible to predict every future development, companies often struggle to define credible yet adaptable reduction pathways.

To overcome these hurdles and ensure your targets are both science-based and practically grounded:

1. Start early to not delay the process

2. Construct a reliable base year carbon footprint calculation model, for instance, in the Carbon+Alt+Delete tool

3. Build a flexible simulation model that can evolve with updated data and new scenarios

4. Actively engage your management team to validate and align on climate ambitions.

Are you active in the forest, land and agriculture sector?

Read our insight into FLAG SBTi targets.