What does SBTi stand for?

SBTi stands for the Science Based Target Initiative, and as the organization’s name suggests, SBTi takes a science-based approach, aligned with the most recent climate science, to guide corporate climate action. The SBTi, founded as a collaboration between climate-focused organizations such as CDP, UNGC, WRI, and others, aims to facilitate and accelerate the global transition to a net-zero economy.

To achieve their goal, the SBTi provides free resources for companies or financial institutions to use to set greenhouse gas emissions reduction targets. Companies that are serious about their climate ambition can have these targets validated through SBTi services. This stamp of approval not only ensures continuous improvement aligned with evolving climate science, but also signals to investors, customers, and other stakeholders that the organization is advancing credible, science-aligned climate action.

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The SBTi has made it clear– emission reductions are the name of the game, but how do organizations play?

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The SBTi wants businesses to create clear, realistic pathways to reduce greenhouse gas emissions. To do this, organizations need a science-based target. For most companies, the SBTi’s cross-sector pathway contains the methodology needed to set near-term or Net-zero targets. For companies in heavy emitting industries, the SBTi has developed sector-specific resources.

These resources are tailored specifically to the context and needs of each industry and enable companies in these industries to develop realistic science-based targets aligned with net-zero pathways. The following sectors either have existing guidance or have guidance being developed.

SBTi Targets

SBTi targets come in two categories: Near-term and Long-term. Each has different timelines and validation requirements, but both point to the same destination. A low carbon future that limits warming to 1.5°C pathway above pre-industrial levels and helps avoid the worst impacts of climate change. or companies committed to climate action, understanding how to align both targets to this pathway is essential.

Both Near- and Long-term targets are part of SBTi’s Corporate Net-Zero Standard, which provides a clear and science-based understanding of Net-zero. The Corporate Net-Zero Standards sets out four key elements that make up a corporate net-zero target:

1. Near-term target

2. Long-term target

3. Neutralization

4. Beyond Value Chain Mitigation (BVCM)

Together, these four elements guide corporations towards an achievable state of net-zero that is consistent with global climate and sustainability goals.  

Near- and Long-term Targets

Near-term SBTs: 5-10 year emission reduction targets in line with 1.5°C pathways.

Long-term SBTs: Target to reduce emissions to a residual level in line with 1.5°C scenarios by 2050.

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Neutralization

GHGs released into the atmosphere when the company has achieved their Long-term science-based target must be counterbalanced through the permanent removal and storage of carbon from the atmosphere.  

Neutralization on the way to net-zero through investments to scale carbon removal solutions can be disclosed to demonstrate the integrity of an organization’s commitment to achieve net-zero.

Beyond Value Chain Mitigation (BVCM)

Companies should take action or make investments outside their own value chains to mitigate GHG emissions. This is in addition to the mitigation required for Near- and Long-term science-based targets.

The main goals of BVCM are  

1. to deliver additional Near-term mitigation to support the halving of global emissions by 2030 and to drive additional finance to scale up, and  

2. to unlock systematic transformation needed to achieve net-zero by 2050.  

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Why SBTi?

Pressure from investors and consumers for evidence of sustainable business operations continues to increase year over year. Tack on a plethora of ESG rating systems, greenwashing lawsuits, new regulatory requirements, and it becomes clear why over 9,000 organizations have verified SBTi targets. Across the world, the expectation of businesses to take responsibility for their impact on climate change is increasing, and setting a science-based target is an excellent way for businesses to walk the talk.

When the SBTi verifies your company’s Near-term and/or Net-zero target, stakeholders know your ambition is consistent with the goal of limiting global warming to 1.5°C above pre-industrial temperatures. This is critical to climate conscious stakeholders. Beyond a rise of 1.5°C, the world will increasingly experience dangerous climate impacts and crisis linked to drought, sea level rise, flooding, and extreme heat.

The Science Based Targets initiative is asking both large and small companies across every industry to align their climate ambition with what science tells us is necessary. Setting a science-based target may seem complex, but SBTi provides clear standards and validation requirements, providing businesses a credible way to prove they are part of a net-zero future.

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SBTi and CEMAsys

If your company is considering setting a science-based target, understanding the SBTi is the first step. From here, the journey involves mapping emissions, committing to reduce, and submitting your target for validation. If you'd like guidance along the way, you can speak with a CEMAsys expert or explore our Guide to the SBTi Target-setting Process.

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