Science-based targets 101: near-term and net-zero

For companies committed to climate action, understanding the difference between near-term and net-zero targets is essential. While these two types of targets have different timeframes and structures, they are complementary and work together towards the same goal, driving ambitious, science-based mitigation across the value chain.  

What is a near-term target?

Near-term science-based targets are the foundation of corporate climate action. They define how much a company must reduce its greenhouse gas (GHG) emissions over the next 5–10 years. Near-term targets are mandatory for all companies seeking SBTi validation. They ensure that action begins immediately and provide accountability for progress in the short to medium term.

A near-term target must include at least 95% of a company's direct emissions (scopes 1 and 2). If more than 40% of a company's total emissions come from its value chain, like suppliers, product use and transport (scope 3), then the company must also set a scope 3 target. This must cover at least 67% of those emissions, though many companies go further and cover up to 100%.

Some sector guidance documents, like that for forest, land and agriculture (FLAG), include additional requirements and timelines. Despite these, the goal remains the same: take bold action today to drive immediate, meaningful change.

What is a net-zero target?

Net-zero science-based targets go further. They combine immediate action with long-term ambition. Companies setting net-zero targets through the SBTi commit to reduce emissions by at least 90% across the value chain by no later than 2050, and to neutralize any remaining emissions at the net-zero target year, and beyond, with permanent carbon removals.

There are four key components to a net-zero science-based target:

• Near-term target
  • Companies must set a near-term emissions reduction target (as explained above) to be achieved within 5-10 years from the date of submission.
• Long-term target
  • Companies must set a long-term target to reduce emissions by at least 90% before 2050. This target must include at least 95% of scope 1 and 2 emissions, and 90% of all scope 3 emissions.
• Neutralization
  • Once a company achieves its long-term target, any ‘left over’ residual emissions they cannot cut must be neutralized—only then can they claim to be net-zero. Neutralization requires counterbalancing remaining unabated emissions with permanent removals and storage.
• Beyond Value Chain Mitigation (BVCM)
  • We recommend companies support additional climate mitigation actions or investments that fall outside a company’s value chain. This includes activities that avoid, reduce, or remove and store greenhouse gases from the atmosphere. These actions or investments must be in addition to value chain emissions reductions.  Check out the “Above and Beyond” report published by the SBTi in 2024 to help companies implement BVCM strategies with integrity, transparency, and climate impact.

We are currently revising our Corporate Net-Zero Standard to make it more practical and ambitious. It recently underwent a 90-day public consultation, where over 855 stakeholders contributed their expertise and input on proposed changes. Now, we are calling on companies to pilot test the draft Standard. This key step in the development process aims to ensure the Standard is both scientifically robust and practical for businesses, by incorporating real-world insights and implementation experience. Companies are invited to participate by completing this survey by August 15, 2025.

Going from near-term to net-zero

Companies can set a net-zero target from the start, or build on an approved near-term target by upgrading to a net-zero target –under the current Corporate Net-Zero Standard– by developing a long-term target and submitting it to SBTi Services. For more information on how to take this step, see page 13 of the Getting Started Guidance.

Both near-term and net-zero targets play vital roles in the global climate response. Near-term targets remain a required stepping stone to net-zero, providing accountability and momentum in the critical years ahead, while net-zero targets offer a clear end goal. Together, they reflect a comprehensive and credible approach to emissions reductions—one that balances urgency with long-term vision.

Learn more about near-term targets and explore the draft Corporate Net-Zero Standard V2.