In this guide, we will walk through a beginner-friendly process that shows the basics of setting science-based targets (SBTs). Along the way we will cover key decisions like your base year, target boundary, and more, so you can set targets with confidence.
The Science Based Targets initiative (SBTi) is a corporate climate action organization that focuses on enabling companies and financial institutions to play their part in combatting the climate crisis. They provide the global best practice for setting credible, 1.5°C-aligned emissions reduction targets.
Read more about what SBTi is here
The process has four steps: Register, Develop, Submit & Validate, and Communicate & Disclose. By the end, you will understand what is involved with each step, how to meet SBTi requirements, and what you need to do to stay aligned year after year.
At the start of your SBTi journey, register on the SBTi portal and decide whether to make a public commitment to set a target or proceed with developing your target privatelyA commitment opens a 24-month window to develop and submit your science-based targets for assessment. There are a few different types of SBTs that your organization can choose to set and have validated. This includes near-term Scope 1 and 2 targets, near-term Scope 3 targets, long-term targets, and Net-zero targets. Within these targets, there are additional considerations such as reduction in absolute emissions versus emissions intensity, and even supplier engagement options for Scope 3 targets.
Some companies choose to skip the commitment step and move directly to submitting targets. However, for larger organizations, making a public commitment is more typical and can help maintain visibility, accountability, and alignment with SBTi’s public engagement framework. Committing early also encourages internal momentum and ensures sustained focus throughout the target development process.
There are several things to determine when developing a target. You will need to calculate your company’s emissions, select a base year, set target boundaries, choose a target year, and calculate your targets in alignment with SBTi requirements.
If you have gotten to this point and haven’t already completed a GHG inventory, it is time to start. If you already have a GHG inventory, congratulations! However, it may be worthwhile to look externally for a quality assessment or assurance. A high-quality, accurate picture of your organization’s emissions is crucial to having SBTi targets validated.
Companies are required to have a comprehensive emissions inventory of company-wide Scope 1, Scope 2, and Scope 3, or value chain emissions.
If you are just getting started, there are a few things to prioritize. A good first step is to ground your work in the Greenhouse Gas Protocol (GHG Protocol), beginning with understanding and calculating Scope 1 and Scope 2 emissions. As you develop your organization’s carbon inventory, it will be necessary to begin identifying and measuring relevant Scope 3 categories.
Exclusions are allowed but must not exceed 10% of total emissions.
Scope 3 emissions are often the largest source of emissions for businesses, and this could be true for your operations as well. One approach to calculating Scope 3 emissions is to first complete a high-level screening inventory based on secondary financial data. From there, you can expand into a more complete inventory and improve data quality over time to build a clearer picture of your emissions profile.
Read post about Scope 3 here
If you’re not sure where to get started with Scope 3 emissions, our breakdown of the GHG Protocol’s Scope 3 emissions is an excellent place to begin.
Read post about Scope 3 here
Honestly, we could write a whole article on how to measure and report your company’s footprint—and we have! Check out our article, ‘Everything You Should Know About Carbon Management,’ for a look at what a well-thought-out strategy for calculating your carbon footprint and managing your emissions should entail.
Even if your organization already has a complete emissions inventory, it’s important to have your data and methodology independently reviewed or assured. The SBTi holds companies to high standards for carbon accounting and expects alignment with the GHG Protocol, transparent boundaries, and traceable calculations. Third-party assurance helps confirm data quality and readiness for SBTi validation while strengthening credibility and investor confidence.
You’ll establish a base year while building your GHG inventory, especially if this is your organization’s first carbon footprint. The base year serves as the reference point for tracking progress over time and is required for both general GHG reporting and SBTi target-setting. If your organization already reports emissions, you may already have a suitable base year that can be reviewed or adjusted to align with SBTi requirements. Pick a recent, verifiable base year (2015 or later) that reflects a normal year for your business. SBTi does not require third-party verification of base-year emissions, but the data must be accurate and verifiable to meet validation criteria.
Companies that have already set near-term SBTs must use the same base year for their long-term SBTs.
The base year does not necessarily need to be the same across all targets, for example, a company might use one base year for Scope 3 and another for Scope 1 and 2, but all Scope 1 and 2 targets must share the same base year to ensure consistency in tracking performance.
Various factors such as mergers, divestments, business function change, and geographical implications may lead to recalculations of the base year inventory to ensure continued relevance and alignment to the GHG Protocol.
For Scope 3, using the same base year is recommended but not required. If Scope 3 data is exceptionally difficult to obtain or if the company has a historical scope 1 and 2 base year, it is permissible that scope 1 and 2 targets use a different base year from Scope 3 targets.
A company’s target boundary specifies which scopes, categories, and entities are included in a company’s science-based target. This boundary determines how much of the emissions inventory the target applies to and ensures it meets SBTi’s required level of ambition.
A comprehensive target boundary is required for your organization to make credible and science-based targets. The SBTi has boundary requirements that differ by target and scope.
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If your company is involved in the sale or distribution of fossil fuels, you are required to set a separate absolute reduction target for use-phase emissions under Scope 3 Category 11, Use of Sold Products. Additionally, biogenic CO₂ emissions from biomass combustion, processing, distribution, land-use change, and carbon removals from bioenergy feedstocks must be included within the target boundary. Certain high-emitting sectors are also subject to additional boundary requirements under sector-specific or FLAG guidance.
For Scope 3 targets, you can meet the boundary requirements with one target or with several targets that add up to the required coverage. Some companies set a single target that covers total Scope 1, 2, and 3, others set a single target for total Scope 3, and some set separate targets for individual Scope 3 categories.
Example: Company A commits to reduce absolute scope 1, 2, and 3 GHG emissions 55% by 2030 from a 2017 base year.
This type of target is simple to communicate, but provides less transparency for Scope 3 emissions and reporting on progress.
Example: Company B commits to reduce absolute Scope 3 GHG emissions 60% by 2030 from a 2019 base year.
This target is relatively easy to communicate with stakeholders and provides flexibility to achieve reductions across all Scope 3 categories.
Example: Company C commits to reduce absolute Scope 3 purchased goods and services GHG emissions 50% by 2030 from a 2019 base year. Company C further commits to reduce Scope 3 business travel and employee commuting GHG emissions 55% per employee within the same timeframe.
This type of target allows you to customize your company’s targets to different Scope 3 categories based on your unique circumstances.
Target year refers to the end year of a company’s target period. It establishes the timeframe for planning and implementation and marks the point at which your company’s reduction should be achieved to align with the 1.5°C pathway.
For near-term targets, you can choose either 2030 or a year that is 5 – 10 years after the day you submit your targets to the SBTi.
Long-term targets must have a target year of 2050 or earlier where sector-specific pathways require it.
Once the target year is established, you can determine the level of ambition required for both near-term and long-term targets and begin calculating the emissions reductions needed to achieve them.
Ambition refers to the magnitude and pace of emissions reductions a company commits to through its science-based targets. It reflects how closely the target aligns with SBTi temperature pathways such as 1.5°C or well-below 2°C.
For near-term targets, ambition is driven by two inputs: your base year and your near-term target year. Together, these determine the annual rate of emissions reduction required. Once these inputs are set, companies can calculate required reductions using the SBTi Near-Term Target Setting Tool found on the SBTi Resource Library.
Forward Looking Ambition:
If your base year is earlier than your most recent reporting year, Scope 1 and Scope 2 need to account for forward looking ambition to ensure the target drives new reductions from the year it is set.
Long-term ambition is fixed to a 1.5°C pathway. The Corporate Net Tool can be used to calculate you the total reduction needed to reach a residual emissions level. If you are in a sector with its own pathway (for example aviation, maritime, or steel), use the tool provided alongside the sector-specific guidance.
Validation is the SBTi’s independent review that confirms your targets meet current criteria and sector guidance. Reviewers check coverage thresholds, target-setting methods and tools, temperature alignment, base year and target year rules including any forward-looking ambition, boundary choices, and target wording. The review typically takes about 30 business days and ends with a decision letter and a validation report. Approved targets are added to the SBTi database and can be communicated publicly.
Assessment
In the Assessment stage, the submission form and supporting documentation are reviewed to ensure your emissions accounting and targets align with SBTi criteria. During this stage, the SBTi evaluator may request clarifications or raise questions on non-conformities and a set response window. Reply as quickly as possible with clarifications or revised materials. If all items are resolved within this window, the submission proceeds to the Decision stage. If items remain open at the end of the window, the file transitions to Evaluation.
Evaluation
Evaluation is a follow-up stage used only when issues from Assessment weren’t fully resolved on time. Here, the company addresses the outstanding points (for example, supplying missing evidence, correcting coverage calculations, updating target wording, or confirming sector tool applicability), and SBTi re-checks the updated materials. Once the evaluator confirms that all outstanding items are closed, the submission advances to Decision. If required documents are still missing or material problems remain at the end of Evaluation, the submission is rejected.
Decision
In Decision, a separate reviewer confirms the outcome based on the Assessment/Evaluation record; a Validation Management Team Representative (VMR) finalizes the decision. If the VMR requests anything further, you will typically have 10 business days to respond. SBTi then issues a decision letter and a validation report; approved targets are recorded and can be communicated publicly.
Disclosing annual target updates is an important requirement as it enables your company to communicate year-on-year progress against targets to stakeholders. By disclosing all pertinent aspects of the target, as well as the progress against the target, your company ensures stakeholders fully understand the context and implications of your target and progress.
You will need to communicate your validated SBTi target in line with the provided SBTi communication guidelines across all channels and reports. These include, but are not limited to, appropriate language about your target(s), keywords to avoid, and digital toolkit and logo use rules.
Setting SBTi targets doesn’t need to be a headache. If you focus on the basics and follow the steps outlined here, you will be well on your way to a SBTi verified target.
Quick recap of the steps
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The Science Based Targets initiative (SBTi) is a corporate climate action organization that focuses on enabling companies and financial institutions to play their part in combatting the climate crisis. They provide the global best practice for setting credible, 1.5°C-aligned emissions reduction targets.
Read more about what SBTi is here
The process has four steps: Register, Develop, Submit & Validate, and Communicate & Disclose. By the end, you will understand what is involved with each step, how to meet SBTi requirements, and what you need to do to stay aligned year after year.
At the start of your SBTi journey, register on the SBTi portal and decide whether to make a public commitment to set a target or proceed with developing your target privatelyA commitment opens a 24-month window to develop and submit your science-based targets for assessment. There are a few different types of SBTs that your organization can choose to set and have validated. This includes near-term Scope 1 and 2 targets, near-term Scope 3 targets, long-term targets, and Net-zero targets. Within these targets, there are additional considerations such as reduction in absolute emissions versus emissions intensity, and even supplier engagement options for Scope 3 targets.
Some companies choose to skip the commitment step and move directly to submitting targets. However, for larger organizations, making a public commitment is more typical and can help maintain visibility, accountability, and alignment with SBTi’s public engagement framework. Committing early also encourages internal momentum and ensures sustained focus throughout the target development process.
There are several things to determine when developing a target. You will need to calculate your company’s emissions, select a base year, set target boundaries, choose a target year, and calculate your targets in alignment with SBTi requirements.
If you have gotten to this point and haven’t already completed a GHG inventory, it is time to start. If you already have a GHG inventory, congratulations! However, it may be worthwhile to look externally for a quality assessment or assurance. A high-quality, accurate picture of your organization’s emissions is crucial to having SBTi targets validated.
Companies are required to have a comprehensive emissions inventory of company-wide Scope 1, Scope 2, and Scope 3, or value chain emissions.
If you are just getting started, there are a few things to prioritize. A good first step is to ground your work in the Greenhouse Gas Protocol (GHG Protocol), beginning with understanding and calculating Scope 1 and Scope 2 emissions. As you develop your organization’s carbon inventory, it will be necessary to begin identifying and measuring relevant Scope 3 categories.
Exclusions are allowed but must not exceed 10% of total emissions.
Scope 3 emissions are often the largest source of emissions for businesses, and this could be true for your operations as well. One approach to calculating Scope 3 emissions is to first complete a high-level screening inventory based on secondary financial data. From there, you can expand into a more complete inventory and improve data quality over time to build a clearer picture of your emissions profile.
Read post about Scope 3 here
If you’re not sure where to get started with Scope 3 emissions, our breakdown of the GHG Protocol’s Scope 3 emissions is an excellent place to begin.
Read post about Scope 3 here
Honestly, we could write a whole article on how to measure and report your company’s footprint—and we have! Check out our article, ‘Everything You Should Know About Carbon Management,’ for a look at what a well-thought-out strategy for calculating your carbon footprint and managing your emissions should entail.
Even if your organization already has a complete emissions inventory, it’s important to have your data and methodology independently reviewed or assured. The SBTi holds companies to high standards for carbon accounting and expects alignment with the GHG Protocol, transparent boundaries, and traceable calculations. Third-party assurance helps confirm data quality and readiness for SBTi validation while strengthening credibility and investor confidence.
You’ll establish a base year while building your GHG inventory, especially if this is your organization’s first carbon footprint. The base year serves as the reference point for tracking progress over time and is required for both general GHG reporting and SBTi target-setting. If your organization already reports emissions, you may already have a suitable base year that can be reviewed or adjusted to align with SBTi requirements. Pick a recent, verifiable base year (2015 or later) that reflects a normal year for your business. SBTi does not require third-party verification of base-year emissions, but the data must be accurate and verifiable to meet validation criteria.
Companies that have already set near-term SBTs must use the same base year for their long-term SBTs.
The base year does not necessarily need to be the same across all targets, for example, a company might use one base year for Scope 3 and another for Scope 1 and 2, but all Scope 1 and 2 targets must share the same base year to ensure consistency in tracking performance.
Various factors such as mergers, divestments, business function change, and geographical implications may lead to recalculations of the base year inventory to ensure continued relevance and alignment to the GHG Protocol.
For Scope 3, using the same base year is recommended but not required. If Scope 3 data is exceptionally difficult to obtain or if the company has a historical scope 1 and 2 base year, it is permissible that scope 1 and 2 targets use a different base year from Scope 3 targets.
A company’s target boundary specifies which scopes, categories, and entities are included in a company’s science-based target. This boundary determines how much of the emissions inventory the target applies to and ensures it meets SBTi’s required level of ambition.
A comprehensive target boundary is required for your organization to make credible and science-based targets. The SBTi has boundary requirements that differ by target and scope.
If your company is involved in the sale or distribution of fossil fuels, you are required to set a separate absolute reduction target for use-phase emissions under Scope 3 Category 11, Use of Sold Products. Additionally, biogenic CO₂ emissions from biomass combustion, processing, distribution, land-use change, and carbon removals from bioenergy feedstocks must be included within the target boundary. Certain high-emitting sectors are also subject to additional boundary requirements under sector-specific or FLAG guidance.
For Scope 3 targets, you can meet the boundary requirements with one target or with several targets that add up to the required coverage. Some companies set a single target that covers total Scope 1, 2, and 3, others set a single target for total Scope 3, and some set separate targets for individual Scope 3 categories.
Example: Company A commits to reduce absolute scope 1, 2, and 3 GHG emissions 55% by 2030 from a 2017 base year.
This type of target is simple to communicate, but provides less transparency for Scope 3 emissions and reporting on progress.
Example: Company B commits to reduce absolute Scope 3 GHG emissions 60% by 2030 from a 2019 base year.
This target is relatively easy to communicate with stakeholders and provides flexibility to achieve reductions across all Scope 3 categories.
Example: Company C commits to reduce absolute Scope 3 purchased goods and services GHG emissions 50% by 2030 from a 2019 base year. Company C further commits to reduce Scope 3 business travel and employee commuting GHG emissions 55% per employee within the same timeframe.
This type of target allows you to customize your company’s targets to different Scope 3 categories based on your unique circumstances.
Target year refers to the end year of a company’s target period. It establishes the timeframe for planning and implementation and marks the point at which your company’s reduction should be achieved to align with the 1.5°C pathway.
For near-term targets, you can choose either 2030 or a year that is 5 – 10 years after the day you submit your targets to the SBTi.
Long-term targets must have a target year of 2050 or earlier where sector-specific pathways require it.
Once the target year is established, you can determine the level of ambition required for both near-term and long-term targets and begin calculating the emissions reductions needed to achieve them.
Ambition refers to the magnitude and pace of emissions reductions a company commits to through its science-based targets. It reflects how closely the target aligns with SBTi temperature pathways such as 1.5°C or well-below 2°C.
For near-term targets, ambition is driven by two inputs: your base year and your near-term target year. Together, these determine the annual rate of emissions reduction required. Once these inputs are set, companies can calculate required reductions using the SBTi Near-Term Target Setting Tool found on the SBTi Resource Library.
Forward Looking Ambition:
If your base year is earlier than your most recent reporting year, Scope 1 and Scope 2 need to account for forward looking ambition to ensure the target drives new reductions from the year it is set.
Long-term ambition is fixed to a 1.5°C pathway. The Corporate Net Tool can be used to calculate you the total reduction needed to reach a residual emissions level. If you are in a sector with its own pathway (for example aviation, maritime, or steel), use the tool provided alongside the sector-specific guidance.
Validation is the SBTi’s independent review that confirms your targets meet current criteria and sector guidance. Reviewers check coverage thresholds, target-setting methods and tools, temperature alignment, base year and target year rules including any forward-looking ambition, boundary choices, and target wording. The review typically takes about 30 business days and ends with a decision letter and a validation report. Approved targets are added to the SBTi database and can be communicated publicly.
Assessment
In the Assessment stage, the submission form and supporting documentation are reviewed to ensure your emissions accounting and targets align with SBTi criteria. During this stage, the SBTi evaluator may request clarifications or raise questions on non-conformities and a set response window. Reply as quickly as possible with clarifications or revised materials. If all items are resolved within this window, the submission proceeds to the Decision stage. If items remain open at the end of the window, the file transitions to Evaluation.
Evaluation
Evaluation is a follow-up stage used only when issues from Assessment weren’t fully resolved on time. Here, the company addresses the outstanding points (for example, supplying missing evidence, correcting coverage calculations, updating target wording, or confirming sector tool applicability), and SBTi re-checks the updated materials. Once the evaluator confirms that all outstanding items are closed, the submission advances to Decision. If required documents are still missing or material problems remain at the end of Evaluation, the submission is rejected.
Decision
In Decision, a separate reviewer confirms the outcome based on the Assessment/Evaluation record; a Validation Management Team Representative (VMR) finalizes the decision. If the VMR requests anything further, you will typically have 10 business days to respond. SBTi then issues a decision letter and a validation report; approved targets are recorded and can be communicated publicly.
Disclosing annual target updates is an important requirement as it enables your company to communicate year-on-year progress against targets to stakeholders. By disclosing all pertinent aspects of the target, as well as the progress against the target, your company ensures stakeholders fully understand the context and implications of your target and progress.
You will need to communicate your validated SBTi target in line with the provided SBTi communication guidelines across all channels and reports. These include, but are not limited to, appropriate language about your target(s), keywords to avoid, and digital toolkit and logo use rules.
Setting SBTi targets doesn’t need to be a headache. If you focus on the basics and follow the steps outlined here, you will be well on your way to a SBTi verified target.
Quick recap of the steps
I’m a sustainability consultant focused on helping organizations turn climate ambition into practical action. I work with clients on sustainability strategy, ESG data management, and net-zero planning, drawing on both academic training and hands-on experience to make complex topics clear and usable for busy teams.
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