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The Science Based Targets initiative (SBTi) helps companies set clear, science-based goals to reduce greenhouse gas emissions. These targets are designed to align with the Paris Agreement, which aims to keep global warming well below 2°C and ideally limit it to 1.5°C. By setting these targets, businesses commit to making significant reductions in their emissions, ensuring that their actions are backed by the latest climate science. This commitment helps ensure that companies are not only reducing their impact but also contributing to global climate goals.
Science-based targets give businesses a credible way to align their climate efforts with global standards. They aren’t just about making promises but about taking real, measurable steps that lead to long-term results. For companies, this means showing they are serious about sustainability, which strengthens trust with investors, customers, and regulators. By aligning with science-based targets, businesses are also better equipped to face future challenges, especially as governments around the world introduce stricter environmental regulations. Companies that proactively reduce emissions today are setting themselves up for resilience and success in the long run.
The SBTi process begins with a company calculating its carbon footprint across three scopes: Scope 1 (direct emissions from owned sources), Scope 2 (indirect emissions from purchased energy), and Scope 3 (all other indirect emissions, such as from suppliers or product use). Once this baseline is established, companies set reduction goals that align with the latest climate science. These goals are submitted to SBTi for validation, ensuring they meet rigorous standards.
After approval, companies are required to report their progress on an annual basis, ensuring they remain on track and are transparent in their efforts. This ongoing process not only provides accountability but also allows companies to adjust their strategies as needed to stay aligned with their long-term goals. The structure ensures businesses are contributing to meaningful reductions in global emissions, rather than just symbolic efforts.
More than 6,000 companies, representing around $38 trillion of the global economy, have committed to SBTi. This growing adoption shows the increasing importance businesses place on climate responsibility. As more companies commit to these targets, they not only reduce their environmental impact but also position themselves as leaders in the fight against climate change.
By aligning their strategies with both global environmental targets and business success, these companies are not just meeting regulations but also future-proofing their operations. With backing from major global organizations such as the United Nations, the SBTi framework is quickly becoming the go-to standard for businesses looking to make meaningful progress on climate goals.
The Science Based Targets initiative (SBTi) has faced criticisms, particularly around transparency and reliance on companies paying for verification, raising concerns about independence. Some have questioned the effectiveness of certain emissions reduction methods, especially regarding Scope 3, where tracking indirect emissions is a challenge.
Historically, SBTi discouraged the use of carbon offsets, as they were seen as a way to avoid actual reductions. However, SBTi is shifting toward encouraging carbon removals which are seen as more effective and permanent solutions. The organization is now developing stricter guidelines around offsets, ensuring companies focus on genuine reductions first.
Net-Zero and the Path Forward
In line with the scientific consensus for rapid and profound decarbonization, Version 1 of the Net-Zero Standard focuses on incentivizing emissions abatement within company value chains. This approach aligns with emerging best practices, such as the recommendations from the UN-appointed High-Level Expert Group on Net-Zero Commitments. The Standard emphasizes that while neutralization—removals after abatement—and beyond value chain mitigation (BVCM) are crucial for achieving net-zero, they must follow value chain emissions reductions as a priority.
SBTi is working on strengthening its guidelines, particularly for Scope 3 emissions and carbon removals. The updated framework aims to shift companies away from relying heavily on reduction offsets and focus more on long-term carbon removals. This change is expected to boost the initiative’s credibility, ensuring that companies make meaningful progress toward their climate goals.
By addressing these issues, SBTi aims to ensure more transparent, impactful actions that align with global climate objectives. The focus on removals over traditional reduction offsets is part of this push to maintain SBTi’s leadership as a gold standard for corporate climate action.
At Scature, we are here to support businesses on this journey. We assist with reducing emissions within your value chain by connecting you with regenerative, small-scale farmers who achieve nature-based carbon removal accreditation. These farmers grow raw materials using regenerative methods, which not only store carbon but also reduce Scope 3 emissions. By investing your carbon budget into these credits, you can effectively remove your residual Scope 1 and 2 emissions while simultaneously reducing Scope 3—all within the same budget.
Alternatively, you can explore beyond value chain mitigation by purchasing credits from our diverse network of carbon farmers working across various fields, including land-stored carbon, ocean-stored carbon, rock-stored carbon, and bio-based building-stored carbon. This provides flexible, impactful options for contributing to a net-zero future while supporting innovative solutions that benefit both businesses and the planet.
