SBTs: A Practical Guide for Climate-Aligned Business Action

What Are Science-Based Targets?

Science-Based Targets (SBTs) are greenhouse gas (GHG) emissions reduction goals aligned with the latest climate science to meet the objectives of the Paris Agreement—limiting global warming to well below 2°C, preferably 1.5°C, above pre-industrial levels.

The Science Based Targets initiative (SBTi) provides a framework for companies and financial institutions to set these targets, ensuring they contribute effectively to global decarbonization efforts.

SBTi offers guidance across various sectors, including power, transport, and finance, with methodologies tailored to specific industry needs.

Types of Targets

• Near-Term Targets: 5–15-year goals focusing on immediate emissions reductions.

• Net-Zero Targets: Long-term commitments to reduce emissions by 90–95% by 2050, with residual emissions neutralized through carbon removal.

1. Commit: Submit a letter of intent to SBTi.
2. Develop: Create targets aligned with SBTi criteria.
3. Submit: Send targets for validation.
4. Communicate: Publicly announce approved targets.
5. Disclose: Report progress annually.

SBTi provides detailed methodologies for sectors such as:

Cement

The Cement Science Based Target Setting Guidance provides the first 1.5°C-aligned framework for companies in the cement sector, including users of cement such as construction businesses, to set near- and long-term science-based targets.

• Overview: Cement Sector Guidance
• Full PDF: Cement Science Based Target Setting Guidance

Power Generation

The Power Sector Guidance offers a quick start guide for electric utilities to set 1.5°C-aligned science-based targets, including supplementary materials and terms of reference.

• Overview: Power Sector Guidance
• Quick Start Guide PDF: Setting 1.5°C-aligned Science-based Targets: Quick Start Guide for Electric Utilities

Financial Institutions

The Financial Sector Science-Based Targets Guidance provides financial institutions with a framework to align their investment and lending activities with science-based targets.

• Overview: Financial Institutions Guidance
• Full PDF: Financial Sector Science-Based Targets Guidance

Forest, Land, and Agriculture (FLAG)

The FLAG Guidance provides the world's first standard method for companies in land-intensive sectors to set science-based targets that include land-based emissions and removals.

• Overview: FLAG Sector Guidance
• Full PDF: Forest, Land and Agriculture Science-Based Target-Setting Guidance

These resources provide detailed methodologies, tools, and criteria tailored to each sector, supporting companies in setting and achieving their science-based targets.

• Financial Sector: Stricter rules now require banks and asset managers to align Scope 1 and 2 emissions with a 1.5°C pathway and Scope 3 emissions with a well-below 2°C trajectory.

• Carbon Offsets: Debates continue over the role of offsets in achieving targets, with concerns about potential greenwashing.

• Net-Zero Standard: Introduced in 2021, it provides a clear framework for long-term decarbonization.

Getting Started

Access the SBTi Getting Started Guide for a step-by-step overview.

For further assistance, visit the SBTi Resources page.