Science Based Targets (SBTi): Definition, Requirements and What They Mean for Carbon Data

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Science Based Targets (SBTi) are corporate greenhouse gas (GHG) reduction commitments that are independently validated against climate science — specifically against the emissions pathways required to limit global warming to 1.5°C above pre-industrial levels, in line with the Paris Agreement. Administered by the Science Based Targets initiative (SBTi) — a partnership between CDP, the UN Global Compact, WRI, and WWF — the standard is widely recognized as the most credible framework for corporate climate ambition.

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Setting an SBTi target signals that a company's climate commitments are not self-defined or arbitrary, but independently confirmed to be consistent with what climate science says is necessary. For this reason, SBTi targets have become a baseline expectation in many investor, customer, and regulatory contexts — and are increasingly referenced in CSRD/ESRS E1 climate transition plans.

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What SBTi requires

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SBTi corporate targets must meet specific quantitative criteria:

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Near-term targets (within 5–10 years)

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• Scope 1 and 2: minimum 42% absolute reduction by 2030 from a base year (aligned with the 1.5°C pathway)
• Scope 3: if Scope 3 represents more than 40% of total emissions (which is the case for virtually all manufacturers), a Scope 3 near-term target is also required — either an absolute reduction or an intensity-based target, with specific thresholds depending on sector

Long-term net zero targets (by 2050 or earlier)

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‍Under the SBTi Corporate Net-Zero Standard, companies must commit to:

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• 90–95% absolute reduction across Scope 1, 2, and 3 compared to base year
• Neutralizing residual emissions (the remaining 5–10%) through permanent carbon removals — not through avoided-emission offsets
• A validated net zero target no later than 2050, with interim milestones

This makes SBTi the most rigorous formalization of Net Zero as a concept: it enforces the primacy of deep emissions reduction and strictly limits the role of offsetting.

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Why Scope 3 is the central SBTi challenge

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For most manufacturers and industrial companies, Scope 3 emissions represent 70–90% of the total corporate carbon footprint. This means a company cannot set credible SBTi targets — or track progress against them — without a reliable, complete Scope 3 baseline.

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Building that baseline requires granular, verified CO₂e data at material and product level across the supply chain. This is where Product Carbon Footprint (PCF) calculations and LCA methodology connect directly to SBTi: PCF data for purchased goods (Scope 3 Category 1) and sold products (Categories 11 and 12) often represents the majority of a company's Scope 3 inventory — and the area where targeted reduction actions have the greatest leverage.

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SBTi and the data requirements

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SBTi validation requires a documented, GHG Protocol-aligned emissions inventory covering all three scopes, including a complete Scope 3 assessment covering all relevant categories. The base year data must be of sufficient quality to establish a credible baseline — meaning it must meet ISO 14067 and GHG Protocol data quality standards for accuracy, completeness, and representativeness.

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For procurement teams, SBTi targets create a concrete business case for supplier engagement programs: reducing Scope 3 Category 1 emissions requires suppliers to reduce the carbon intensity of the materials and components they sell — which in turn drives demand for product-level CO₂e data and PCF calculations throughout the supply chain.

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SBTi, CSRD, and regulatory alignment

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CSRD/ESRS E1 requires companies to disclose whether their climate targets are aligned with science-based pathways. While CSRD does not mandate SBTi membership, an SBTi-validated target is the clearest available demonstration of science-based alignment — and significantly strengthens the credibility of a company's climate transition plan under external assurance. The sustainability regulations landscape is converging toward SBTi as the de facto benchmark for corporate climate ambition.

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Want to build the verified Scope 3 baseline your SBTi target requires?

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Explore our CO₂e database and PCF calculation tools, or contact our team to access the sustamizer® and calculate the product-level carbon data you need for SBTi target setting and tracking.

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