Science-Based Targets (SBTi)

Science-based targets are GHG emission reduction targets aligned with the latest climate science, specifically what is needed to limit global warming to 1.5°C above pre-industrial levels, consistent with the Paris Agreement. The Science Based Targets initiative (SBTi) validates corporate targets against its criteria. Companies can set: near-term targets (covering 5–10 years, minimum 42% absolute Scope 1 and 2 reduction by 2030 from a base year); and long-term targets (net-zero by 2050 or earlier, with 90–95% absolute reduction). SBTi issued updates to the Corporate Net Zero Standard in 2025 and separately developed FLAG (Forests, Land, and Agriculture) targets for land-sector emissions.

SBTi Corporate Net Zero Standard (2021, with 2025 updates); SBTi Criteria v5.1; SBTi FLAG guidance (2022).

SBTi-validated targets are increasingly required by investors (GFANZ), banks (sustainability-linked finance), and procurement programmes. Companies submitting targets to SBTi must cover Scope 1 and 2 (mandatory) and Scope 3 (if Scope 3 >40% of total emissions). The SBTi Corporate Net Zero Standard 2025 update proposed stricter Scope 2 requirements, clearer Scope 3 pathways, mandatory transition plans, and recognition of carbon removals. Under IFRS S2 and ESRS E1, science-based targets are the expected standard for credible climate commitments.