The Science Based Targets Initiative (SBTi) is a global movement empowering businesses to take meaningful action on climate change by setting science-based emissions reduction targets aligned with the latest climate science. The initiative helps companies, cities, and financial institutions set and achieve targets that are consistent with the Paris Agreement—the global pact to limit warming to well below 2°C, aiming for 1.5°C above pre-industrial levels.

By setting these science-backed targets, organizations not only contribute to global climate goals but also strengthen their competitive edge, enhance corporate reputation, and attract sustainable investment. As the world moves toward a net-zero future, science-based targets are crucial for businesses looking to align with the green economy and secure long-term resilience.

What is the Science Based Targets Initiative (SBTi)?

The SBTi is a collaboration between four leading organizations:

• CDP
• World Resources Institute (WRI)
• World Wide Fund for Nature (WWF)
• The UN Global Compact

Together, they provide companies and financial institutions with a clear, robust framework for setting targets to reduce greenhouse gas (GHG) emissions in line with climate science and global climate goals. The SBTi offers tools, methodologies, and resources to help organizations navigate their decarbonization journey and create a roadmap for achieving net-zero emissions by mid-century.

Why Set Science-Based Targets?

1. Align with Global Climate Goals
   By setting science-based targets, businesses align their climate action with the Paris Agreement and the scientific consensus on what is needed to limit global warming to 1.5°C. These targets help ensure that companies are not only reducing emissions but are doing so in a way that contributes to global sustainability goals.
2. Enhance Corporate Reputation
   Consumers, investors, and stakeholders are increasingly looking to support organizations that prioritize sustainability. Companies with science-based targets demonstrate leadership in climate action, which can significantly boost brand reputation and customer loyalty.
3. Manage Climate Risks
   Setting science-based targets helps organizations identify and address climate-related risks before they become liabilities. By reducing exposure to regulatory, financial, and physical climate risks, companies can build more resilient and adaptive business models.
4. Attract Sustainable Investment
   Investors are placing more emphasis on environmental, social, and governance (ESG) criteria when making investment decisions. Companies with science-based targets are seen as leaders in sustainability, which can attract impact investors, green bonds, and ESG-focused funds.
5. Drive Operational Efficiency & Innovation
   The process of setting and achieving science-based targets often leads to the discovery of new efficiencies and opportunities for innovation. By optimizing energy use, transitioning to renewable energy sources, and improving supply chain sustainability, companies can lower costs while improving their sustainability credentials.

How Does SBTi Work?

The SBTi guides organizations through a structured process of setting, validating, and achieving science-based emissions reduction targets. Here’s how it works:

1. Commit to Set a Target
   Companies begin by publicly committing to set a science-based target. This commitment signifies their intent to reduce emissions in line with the latest climate science and is a foundational step toward responsible corporate climate action.
2. Measure and Report Emissions
   Companies need to measure their carbon footprint—the total greenhouse gas emissions generated by their operations, including Scope 1 (direct emissions), Scope 2 (indirect emissions from energy use), and Scope 3 (indirect emissions from the value chain). Accurate measurement and reporting are essential for setting an actionable baseline.
3. Set Targets Based on Climate Science
   The SBTi provides tools and guidelines to help organizations develop targets based on scientifically sound emission reduction pathways. These targets can be set across different scopes (Scope 1, 2, and 3) and should be aligned with the level of decarbonization needed to limit global warming to 5°C or well below 2°C.
4. Submit Targets for Validation
   Once the target is set, the SBTi evaluates and validates the target to ensure it is in line with the latest climate science. Validation provides companies with confidence that their targets are ambitious, credible, and aligned with global climate goals.
5. Implement Emissions Reduction Strategies
   After target approval, companies implement the necessary strategies to reduce emissions across their operations. This may involve investing in renewable energy, improving energy efficiency, electrifying fleets, transitioning to sustainable materials, or transforming business models to embrace the circular economy.
6. Track, Report, and Disclose Progress
   Regular tracking and disclosure of progress are vital for ensuring accountability. Companies must report their emissions data and progress towards achieving their targets, which is often done through sustainability reports, CDP disclosures, or other public platforms.

Sector-Specific Targets and Guidance

The SBTi acknowledges that emissions reduction strategies will vary by industry. To make the process as relevant as possible, the initiative offers sector-specific guidance for companies in key industries, such as:

• Energy
• Transport
• Manufacturing
• Agriculture
• Financial Services

These sector-specific pathways help businesses understand the most effective decarbonization strategies for their industry and provide a clear roadmap for achieving their science-based targets.

Benefits of SBTi for Your Organization

• Leadership in Sustainability: Position your company as a leader in climate action by committing to measurable, science-backed emissions reductions.
• Regulatory Compliance: Stay ahead of evolving environmental regulations by proactively reducing your carbon footprint in line with global climate goals.
• Enhanced Brand Value: Boost your company’s reputation by demonstrating your commitment to tackling climate change and achieving sustainability goals.
• Attract ESG Investments: Stand out to ESG investors and other stakeholders who are prioritizing companies with credible climate targets and strategies.
• Operational Efficiencies: Realize long-term cost savings through improved energy management, waste reduction, and efficient resource use.