What are science based targets?

Companies and financial institutions worldwide are encouraged to set emissions reduction targets in collaboration with the Science Based Targets initiative (SBTi) to contribute to global efforts in limiting climate change and reaching net-zero emissions by 2050.

SBTs are emissions reduction targets that are in line with the level of decarbonization required to keep the global temperature increase below 2 degrees Celsius, as outlined in the Paris Agreement. These targets reflect ambitious climate action and are based on the latest climate science.

What are the main guidelines?

1. Science-based targets must align with the level of decarbonization necessary to keep global warming below 2 degrees Celsius.
2. Companies are encouraged to aim for even greater efforts towards the 1.5-degree trajectory.
3. The targets should encompass scope 1 and scope 2 emissions. Scope 3 must also be included if these emissions make up 40% or more of your company’s total emissions.
4. The targets should span a minimum of 5 years and a maximum of 15 years, and should not include emissions offsetting.
5. Emissions avoidance also doesn’t count towards science-based targets.
6. These targets must be created using the most recent methods and tools approved by the Science-Based Targets initiative.
7. Progress towards the targets must be reported annually.
8. The Corporate Net-Zero Standard is crucial for setting science-based targets, as it is being revised by the SBTi to enhance corporate climate action and enables companies to set effective targets.

What is the Science Based Targets initiative (SBTi)?

The Science Based Targets initiative (SBTi) is a corporate climate action organization and a partnership between four organizations: the Carbon Trust, CDP, World Resources Institute (WRI), and the World Wildlife Fund (WWF), that helps companies set science-based targets for reducing their greenhouse gas (GHG) emissions. The United Nations Global Compact is a key collaborator in the formation of SBTi, emphasizing its role in combating the climate crisis and driving corporate climate action. SBTi provides corporates, public sector bodies and financial institutions worldwide with a methodology for setting their emissions reduction target in line with climate science.

How can companies set a science-based target?

The process of setting these targets usually involves the following steps:

1. Assessing your company’s current and potential future emissions

This includes measuring and reporting on your company’s greenhouse gas (GHG) emissions using a standardized reporting tool, such as the GHG Protocol.

2. Determining your company’s reduction potential

This step involves identifying your business’ potential to reduce emissions in line with the level of decarbonization required to keep global heating below catastrophic levels.

3. Setting the target

Based on your company’s emissions baseline and reduction potential, you then set a target that is considered “science-based”, meaning it aligns with the latest climate science (as outlined above.)

4. Implementing and monitoring the set targets

Once you’ve set your ambitious science-based emissions reduction targets, you should implement strategies and actions to reduce your company’s emissions, and regularly monitor and report on your progress towards achieving the target.

5. Review and validation

You need to submit your targets for review by the SBTi. Once they are approved, your company’s climate strategy is officially recognized as having set a science-based target, neccessary for an ambitious corporate climate action plan.

It’s worth visiting the official SBTi website for more sector specific guidance on target-setting.

What is the SBTi Corporate Net-Zero Standard?

The SBTi Net-Zero Standard is a framework that helps companies set science-based targets to reach net zero greenhouse gas emissions by 2050 or sooner.

The process of setting corporate net-zero targets using the SBTi standard is similar to the regular process of setting a SBT, with some additional steps:

• Identifying your company’s reduction potential in line with the 1.5°C pathway
• Assessing and quantifying your company’s remaining emissions
• Setting a target for achieving net-zero emissions, including a plan for managing any remaining emissions through the use of carbon offsetting or removal.

Moving from the current standard to the new standard

To ensure companies stay aligned with the latest climate science, the SBTi is updating its frameworks, with Version 2.0 (V2) currently under public consultation. This new standard will refine and develop standards that strengthen corporate climate commitments while providing a clearer pathway to long-term decarbonization.

• Companies setting new near-term targets in 2025 and 2026 will continue using the current Corporate Net-Zero Standard (V1.2) and Near-Term Criteria (V5.2).
• From 2027 onward, companies will need to use Net Zero Standard version 2.0 to set both near-term and long-term targets.
• Targets set under the current standard will remain valid until 2030, but businesses should plan to transition to V2 through the upcoming public consultation.
• The SBTi will provide a pathway for aligning Scope 3 targets with V2, preventing duplication of efforts. Further details will be announced in the version 2.0 public consultation later this year.

This transition ensures that zero plans from companies remain aligned with the latest science while maintaining credibility in a rapidly evolving regulatory landscape.

What are the business benefits of adopting science based targets?

Driving innovation

Science based targets provide companies with a clear and ambitious goal to work towards, and a roadmap for decarbonization. This can help your company to drive innovation, increase efficiency, and identify new opportunities for growth.

Managing climate-related risk

SBTs can also help you to manage the risks associated with climate change, such as physical risks to assets, transition risks, and reputational risks. Companies and financial institutions that set and achieve SBTs can improve their reputation and brand value by demonstrating their commitment to sustainability.

Attracting new investment

Companies that set and achieve SBTs can also improve their access to capital by demonstrating to investors that they are well-positioned to manage the risks and opportunities associated with climate change. Setting SBTs can also help you to better engage and communicate with key stakeholders – such as investors, customers, and employees – about their sustainability efforts and progress towards achieving your targets.

Cost savings

Companies that reduce greenhouse gas emissions in line with the latest climate science, can also identify opportunities to reduce energy consumption and eliminate waste in their operations. This in turn leads to savings on materials, water, and other resources.

Overall, companies that adopt science-based targets can gain a competitive advantage, and enhance their long-term business sustainability, while reducing their environmental impact and contributing to the global effort to tackle climate change and achieve a net zero economy.

Ready to set a bold but credible Net Zero plan?

Sweep can help you identify your emissions hotspots and map a clearly defined pathway to decarbonization.