The SBTi's science-based targets help organisations understand how much and how quickly they need to reduce their greenhouse gas emissions to avoid the worst effects of climate change. In this insight, we explore the key steps in that process, what committing to the SBTi entails, and the benefits it can bring.
In the Paris Agreement, world leaders committed to limiting global warming to 1.5°C. The Science Based Target initiative (SBTi) translates that ambition into concrete, science-based targets for companies.
If we want to stay within the 1.5°C threshold, how quickly should companies reduce – and where necessary, offset – their emissions to achieve net zero in time? The SBTi not only provides precise reduction trajectories; it also supports companies with guidelines and calculation tools to help them set, reach and communicate achievable targets.
The SBTi has formulated general reduction targets for all types of companies in all sectors. To align with the Paris Agreement and EU climate targets, companies are expected to reduce their CO₂ emissions by 42% by 2030. This applies to scope 1 and 2 emissions, as well as scope 3 emissions across the value chain.
Because scope 3 emissions are harder to control, companies may opt for a 25% reduction by 2030, which corresponds to a scenario where global warming is limited to below 2°C.
The long-term SBTi target, in line with the Paris Agreement, is net zero by 2050 for scope 1, 2 and 3. Companies are allowed to offset the final 10% of residual emissions – those that cannot be eliminated – through permanent carbon removal and storage.
The SBTi also offers sector-specific targets for industries such as chemicals, construction, transport and fashion. Ambitious companies can go a step further through Beyond Value Chain Mitigation: a mechanism that enables them to invest in emission reductions outside their own value chain or in initiatives that remove greenhouse gases from the atmosphere.
The SBTi is currently revising its standards. Proposed changes include:
The new Corporate Net-Zero Standard Version 2.0 is expected to come into effect in 2027. Companies joining the SBTi before that date may continue using the current standard until 2030.
More details are available in the SBTi proposal.
Companies joining the SBTi go through six steps:
Working with the SBTi lends structure and credibility to a company's sustainability strategy. Its targets are grounded in science, making them more resilient to changing legislation and less susceptible to public pressure or lobbying. This allows organisations to demonstrate a clear commitment to future-proof growth.
Adopting SBTi targets requires a long-term strategy and encourages companies to embrace efficiency and innovation. This in turn reduces energy and material costs, while boosting competitiveness by anticipating stricter regulations such as rising carbon taxes.
Once validated, the SBTi recognises you as a committed participant. You will be listed on the organisation's Target Dashboard, as well as on the websites of partners such as the We Mean Business Coalition and the UN Global Compact. This increases investor confidence and signals a strong sustainable commitment – something consumers increasingly value. Participating companies also receive a welcome pack with communication guidelines and best practices.
Need help setting climate targets?
Pantarein supports you every step of the way: we map your emissions, define measurable SBTi targets, create a feasible carbon reduction plan and help you communicate clearly with your stakeholders.
Contact us at mail@pantarein.be – together we’ll build a science-based climate strategy that works.
