What is the Science Based Targets initiative?
If you’re a large organisation, it’s very likely you’re having to report your greenhouse gas emissions under one mandatory scheme or another. Because of this, many organisations are choosing to go one step further and commit to carbon reductions targets such as net-zero, even if they aren’t required to report their emissions.
The Science Based Targets initiative (SBTi) sets the gold standard for emissions reduction. To date, over 1,500 companies have had their targets approved. Here, we lay out what it is, who can sign up, why you’d want to, and the steps you’d need to take.
What are science-based targets?
Essentially, science-based targets are goals which are used by businesses to reduce their greenhouse gas emissions. Specifically, the aim is to reduce global warming to 1.5°C above pre-industrial levels in line with the Paris Agreement.
The Science Based Targets initiative (SBTi) is a collaborative partnership – between CDP, the UN Global Compact, World Resources Institute (WRI), and WWF – that “champions science-based target setting as a powerful way of boosting companies’ competitive advantage in the transition to the low-carbon economy.” They focus on meeting the goals of the Paris Agreement by defining best practice, providing independent target validation, and ensuring corporate commitments translate into real-world carbon reductions rather than reliance on unverified offsets.
Who can sign up to the Science Based Targets initiative?
With a few exceptions, all companies and financial institutions can sign up to SBTi. The initiative provides specific guidance on routes and methods to join, depending on the size of the company and the sector in which they operate.
Currently, fossil fuel companies and automakers are unable to validate their targets, though the latter can commit to setting a target and SBTi hopes to include both sectors soon. Also excluded for the moment are cities, local governments, public sector institutions, educational institutions and non-profit organisations.
Why should your business set Science Based Targets?
With greenwashing rampant and many questioning the legitimacy of net zero claims, SBTi provides organisations with credible, recognisable and independently audited emissions targets. As well as environmental advantages, setting SBTs can help a business in several key commercial ways:
- Futureproofing & Regulatory Compliance: Every sector will be affected by the switch to a low-carbon economy. By aligning with science-based targets, you’ll stay well ahead of expanding reporting frameworks -such as UK SECR and the EU’s Corporate Sustainability Reporting Directive (CSRD) – giving you a clear competitive edge over businesses that delay.
- Reputational Advantages & Tenders: Demonstrating validated climate action improves staff morale, attracts top talent, and strengthens your public reputation. Crucially, large enterprise clients and public sector bodies increasingly mandate that their supply chain partners have credible carbon reduction plans to win RFPs and tenders.
- Investor Confidence: Financial institutions are paying close attention to environmental policies. Having validated SBTs gives investors’ confidence that your business is actively mitigating climate risks, unlocking access to green financing and favourable lending terms.
- Increased Efficiency & Energy Resilience: Decarbonizing your operations leads to leaner, more efficient processes. Transitioning away from fossil fuels to genuine renewable energy protects your business against unpredictable energy price volatility.
How to set Science Based Targets
In theory, SBTs appear to have no drawbacks, but implementation requires thorough planning. Here are some of the best practices for setting SBTs in accordance with current SBTi guidelines:
Under the SBTi Corporate Net-Zero Standard, businesses set two connected milestones:
- Near-Term Targets: Rapid action over a 5–10 year horizon to significantly cut operational and value chain emissions.
- Long-Term Net-Zero Targets: Cutting absolute emissions by at least 90% across all scopes by 2050 at the latest. Offsets cannot be used to meet near-term targets; permanent carbon removals are reserved strictly for neutralizing the remaining residual emissions (<10%) at true net-zero.
The SBTi provides streamlined pathways and sector-specific tools (such as simplified options for SMEs) to model decarbonization scenarios. Rather than opting for the easiest route, they recommend testing different methodologies to find the optimal, most ambitious pathway relevant to your specific business.
Greenhouse gases: Scope 1, 2, and 3 emissions
Greenhouse gas emissions are categorized into Scopes 1, 2, and 3:
- Scope 1: Direct emissions from owned or controlled sources (e.g., fuel burned in company vehicles or gas boilers). Must be aligned with a 1.5°C pathway.
- Scope 2: Indirect emissions from the generation of purchased electricity, heating, or cooling consumed by the business. Must be aligned with a 1.5°C pathway (e.g., switching to clean renewable power).
- Scope 3: All other indirect emissions occurring across your value chain—both upstream suppliers and downstream product usage.
Scope 1 and 2 emissions are generated from internal operations and are mandatory factors when setting SBTs. However, Scope 3 often represents 80–90% of a company’s total carbon footprint. Setting a Scope 3 target is mandatory if value chain emissions account for more than 40% of your total footprint, making supply chain engagement essential for true decarbonisation.
The rising importance of hourly energy matching
As standards for Scope 2 reporting become more rigorous, with both the SBTi and Greenhouse Gas Protocol announcing reforms, relying on traditional green tariffs is no longer enough to label your electricity usage as zero emissions. Hourly matching matches a business’s energy consumption with local renewable generation on an hour-by-hour basis. Because the electricity grid relies on fossil fuels during periods of low wind or solar generation, matching your exact hourly usage with genuine renewable power provides true transparency of your carbon impact on the grid .
Implementing granular, hourly-matched procurement gives audit-ready transparency, ensures your Scope 2 claims withstand strict scrutiny from validation bodies like the SBTi, and protects your business against allegations of greenwashing.
Next steps
Science Based Targets will help businesses in many ways, from future-proofing operations to increasing investor confidence and winning supply chain contracts. The environment also gains as pledges are met and we transition to a resilient, low-carbon economy.
Beyond carbon emissions, forward-thinking businesses are also looking to the Science Based Targets Network (SBTN) to align corporate actions with broader nature, water, and biodiversity goals.
Good Energy signed up to the SBTi in 2022. Information about our target can be found on our sustainability webpage.
