SBTi
(Science Based Targets)
Science based targets for your path to net zero
What is SBTi?
SBTi stands for the Science Based Targets Initiative. Its aim is to achieve ambitious climate protection measures through scientifically based CO2 emission reduction targets. These targets are derived from the 1.5°C global target set out in the Paris Climate Agreement.
SBTi determines how much reduction is required within an industry and for a company in order to limit global warming to well below two degrees Celsius, preferably even below 1.5 degrees Celsius. It is therefore a question of what measures are necessary to achieve this goal.
What are science-based targets?
Targets are considered "science-based" if they are consistent with the goals of the Paris Agreement. The Paris Agreement aims to limit human-induced (anthropogenic) global warming to well below 2 degrees Celsius compared to pre-industrial levels. To prevent irreversible feedback loops caused by tipping points, the agreement aims to limit warming to 1.5 degrees Celsius. This means that companies can align their emission reduction targets with a specific goal in order to combat climate change more effectively.
How do I set science-based targets as a company?
In order to set targets, it is essential to first understand the status quo of a company's emissions. What are the relevant sources of emissions? Which ones can be influenced relatively easily, and which ones are more complex? A company's carbon footprint (greenhouse gas balance) provides information on this. It is the foundation for calculating the reduction path. We strongly recommend preparing the balance sheet before committing to SBTi, to avoid unnecessary time pressure.
Note: The previous Net-Zero Standard is currently being revised, followed by a pilot phase. Companies that want to submit short-term targets for 2025 and 2026 can still do so according to the standard described below. These will then remain valid until 2030. From 2027 onwards, all companies should set their targets in accordance with the Net-Zero Standard V2.
Corporate Net-Zero Standard V. 1.3
The Corporate Net-Zero Standard is cross-sector guidance for setting targets. A distinction is made between near-term and long-term targets.
Near-Term Targets
- Time frame: 5–10 years from submission
- Reduction rate by 2030: 42%
- Coverage:
- at least 95% of Scope 1 and 2
- at least 67% of Scope 3 if the Scope 3 share of the total balance sheet exceeds 40%.
Long-Term Targets
- Timeframe: by 2050 at the latest
- Coverage:
- at least 95% of Scope 1 and 2
- at least 90% of Scope 3
Neutralisation (CO2 removals)
Net zero by 2050 at the latest is the overarching goal. Reducible emissions should be reduced in line with the long-term goal. Any residual emissions should be offset by CO2 removals. The SBTi also refers to this process as 'neutralisation'.
Sector-specific standards and guidance
For some industries, including those with high emissions, there are specific sector standards to meet the needs of the respective industry. These are:
- Apparel and footwear
- Air transport
- Automotive and land transport
- Buildings
- Chemicals
- Cement
- Financial institutions
- Forest, land and agriculture (FLAG)
- Maritime
- Oil and gas
- Power
- Steel
SME vs. non-SME
For SMEs, SBTi has a simplified procedure for target submission. The costs for SMEs are also considerably lower. Therefore, this is one of the key points that needs to be examined.
To be considered an SME, a company must meet the following criteria:
- < 10,000 tCO2e in Scope 1 and location-based Scope 2
- No financial institutions or companies in the oil and gas sector
- Not obliged to set targets using sector-specific criteria (exception: FLAG, see below)
- Not a subsidiary of a parent company whose combined business falls under the validation route for corporates
Furthermore, three of the following criteria must be met:
- < 250 employees
- < €50 million turnover
- < €25 million total assets
- Company does not fall within the FLAG (Forest, Land and Agriculture) sector*
*Companies in the FLAG sector that meet all other SME criteria may still use the SME validation route (more information in the SBTi FLAG Guidance).
Next steps
Whether you are required by supply chain partners or customers, or simply motivated to participate in SBTi, we will guide you through the process from Corporate Carbon Footprint accounting (if not already in place) to calculating the reduction path and submitting your targets to SBTi. Book a free, no-binding consultation.
