What Are Science Based Targets?
Science Based Targets (SBTs) are company-defined goals aligned with the criteria established by the Science Based Targets initiative (SBTi) to reduce greenhouse gas emissions. These targets are designed to ensure corporate climate action is consistent with the Paris Agreement’s goal of limiting global warming. Over 80% of the Fortune 500 have already established reduction targets, signaling widespread commitment to low-carbon transitions across industries.
Why Should Companies Implement SBTs?
Setting science-based targets delivers tangible business advantages beyond environmental responsibility:
- Innovation stimulus: SBTs drive technological development and position companies as leaders in the sustainability transition.
- Cost savings and competitiveness: Emissions reduction efforts improve long-term operational efficiency and profitability.
- Credibility building: Validated targets strengthen trust among investors, customers, and employees.
- Regulatory preparedness: Companies with SBTs stay ahead of evolving climate policies and regulatory requirements.
How to Establish and Validate SBT Objectives
The SBTi validation process follows five structured steps:
- Commit: Complete an official commitment form to signal intent.
- Develop: Define the reduction objective within a 24-month development timeline.
- Submit: Send the objective to SBTi for independent validation and review.
- Calculate: Measure and communicate the organization’s total carbon footprint.
- Report: Disclose and review emissions performance on an annual basis.
SBTi Criteria for Target Definition
The SBTi applies specific criteria to ensure targets are sufficiently ambitious:
- Scope coverage: Targets must include Scope 1 and Scope 2 emissions. Scope 3 emissions are required when they exceed 40% of total emissions.
- Timeframe: Targets must cover a minimum of 5 to 10 years from the date of announcement.
- Ambition level: Scope 1 and 2 targets must align with a 1.5 degrees Celsius warming limit, while Scope 3 targets should align with well-below 2 degrees Celsius.
- Reporting obligations: Companies must disclose a greenhouse gas inventory annually.
How Technology Supports SBTi Alignment
Digital platforms like Dcycle automate carbon footprint calculations, enable SBTi-aligned target modeling, and facilitate supply chain emissions tracking across all scopes. These tools support supplier collaboration and make it possible to monitor progress toward validated targets in real time, reducing the administrative burden of annual reporting and compliance.
