Understanding the Science Based Targets initiative (SBTi): Why it is becoming business-crucial

As pressure builds on businesses to demonstrate credible climate action, the Science Based Targets initiative (SBTi) has emerged as the leading global framework for setting emissions reduction targets aligned with climate science.

What began as a voluntary commitment is now rapidly becoming an expected standard, particularly for large organisations with complex operations, supply chains, and investor scrutiny.

But what exactly is SBTi, how does the process work, and what does it mean in practice for your business?
This guide covers what you need to know about getting started.

What is the Science-Based Targets initiative (SBTi)?

The SBTi provides a framework for businesses to set science-based emissions reduction targets aligned with limiting global warming to 1.5 °C, in line with the Paris Agreement.

In simple terms, it answers a critical question for business:
“How much do a company need to reduce its emissions, and by when, to align with the latest climate science?”

Companies can set two different types of science-based targets:

• Near-term emissions reductions that must be achieved in the next 5-10 years
• Net zero targets that require immediate action while implementing long-term strategies that will be achieved by 2050 or earlier.

Targets cover:

• Scope 1 emissions: Direct emissions (e.g. fuel use)
• Scope 2 emissions: Indirect emissions from purchased energy
• Scope 3 emissions: Value chain emissions (often the largest and most complex)

Accessory to emissions reduction targets, companies may also set actionable targets that promote reductions across their supply chain, such as renewable energy purchasing contracts and supplier engagement targets.

Many companies set multiple targets to cover different scope emissions and goal timelines. For large businesses with complex supply chains, Scope 3 emissions represent the biggest challenge, and the biggest opportunity for impact.

Why SBTi matters for businesses

SBTi is increasingly seen as the gold standard for credible climate action. This is being driven by a shift in expectations across multiple stakeholders:

• Investors are using SBTi validation as a proxy for robust climate risk management
• Customers and supply chains are requiring science-based targets as part of procurement criteria
• Regulation and reporting frameworks are aligning more closely with science-based approaches

As a result, SBTi is no longer just a “nice to have”. For many large organisations, it is becoming a baseline expectation.

Adoption of SBTi has accelerated significantly in recent years. At the start of 2026, over 10,000 organisations had validated science-based targets, a nearly 40% increase from the 7,200 validated companies at the start of 2025.

How the SBTi process works

While the framework is robust, the process can be broken down into clear stages:

Once a company’s targets are validated, they are required to report their full GHG inventory and progress against targets on an annual basis. While the SBTi doesn’t typically audit every company’s target every year, progress updates are publicly disclosed, adding a layer of accountability.

Are there different rules for different industries?

Yes. While the SBTi framework is consistent, SBTi provide specific guidance for energy-intensive industries like Cement, Aviation, and Steel. These have their own dedicated pathways for emissions reduction targets that focus on reducing emissions from the most intensive areas of the sector, as well as the standard near- and long-term target requirements. Additionally, sector-specific guidance is under consultation for future implementation, such as the Automotive and Power Sector Standards.

The SBTi organisation also offers an automated, streamlined target-setting process for businesses that qualify as an SME.

What does SBTi validation involve?

Validation ensures that targets are credible, consistent, and aligned with climate science. SBTi assesses whether:

• Targets align with a 1.5C pathway
• Scope coverage is sufficient (particularly Scope 3 where relevant)
• Methodologies and assumptions are robust

Once approved, businesses can publicly state that their targets are SBTi-validated.

How long does the SBTi process take?

Timelines vary depending on organisational complexity, but a typical journey may include:

Common challenges businesses face

While the SBTi framework is clear, the application can be resource intensive. Common challenges include:

1. Data complexity

Collecting accurate emissions data, particularly for Scope 3, can be time-consuming and technically demanding.

2. Internal alignment

Setting targets often requires coordination across multiple departments, from procurement to finance and operations.

3. Resource and expertise gaps

Many organisations lack the in-house expertise required to develop compliant targets with confidence.

4. Ongoing tracking and reporting

SBTi is not a one-off exercise – it requires commitment, continuous monitoring and transparent reporting.

The business case for science-based targets

Despite these challenges, the SBTi’s own research shows that the business benefits can be far-reaching, including better access to capital, increased competitive advantage, and a stronger ability to manage risk in an increasingly carbon-constrained world.

Particularly for energy-intensive industries, SBTi provides a structured pathway to reduce exposure to both carbon and cost risk over time.

Are you ready to start your SBTi journey?

Navigating the SBTi process can be complex, and it is common for businesses to engage external expertise to manage the technical and resource-intensive elements.

Sustainable Energy First supports clients across the full SBTi journey – from interpreting requirements and developing targets, to managing submission for SBTi validation, SBTi query management and ongoing emissions tracking and reporting.

To speak to one of our experts about how we can support your business, get in touch with Sustainable Energy First.