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Developing a target
Companies should follow this six-step process to set science-based targets:
1. Register: From October 29th 2024, all companies must register for an account using the new SBTi Services Validation Portal, before making a commitment or submitting targets for validation. This registration step will confirm whether your company is eligible to make a commitment and set targets, and if so whether it is classified as an SME, financial institution or a corporate.
2. Commit: Submit a letter establishing your intent to set a science-based target. Commitments are optional. If your corporate or financial institution is ready to proceed to validation, you can skip the commitment stage. SMEs are not eligible to set commitments
3. Develop: Develop your targets using Science Based Targets initiative standards, criteria and guidance available at sciencebasedtargets.org/resources.
4. Submit: Prepare your target submission forms and submit them to SBTi Services via the Validation Portal to start your validation.
5. Communicate: Announce your target and inform your stakeholders.
6. Disclose: Annually disclose progress made towards your science-based targets.
See detailed guidance on the SBTi Services website for each step, and more information on the tailored process for SMEs.
You can view definitions of each sector classification and their activities in our Sector Classification Descriptions document.
Companies need to establish a base year to track emissions performance consistently and meaningfully over a target period. Companies that are submitting targets for the first time are encouraged to set the most recent year with available data as the base year. If a company has more detailed data for a previous year, this is acceptable for the validation purposes as long as a most recent year data is also submitted to be assessed for ambition.
The following considerations are important for selecting a base year:
Scope 1, 2, and 3 emissions data should be accurate and verifiable.
Base year emissions should be representative of a company’s typical GHG profile.
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Targets must cover a minimum of 5 years and a maximum of 10 years from the date the target is submitted to the SBTi for validation. The choice of base year must be no earlier than 2015.
For targets submitted for an official validation in the first half of 2024, the valid target years are 2028-2033 inclusive. For targets submitted in the second half of 2024, the valid target years are between 2029 and 2034 inclusive.
For targets submitted for validation in 2024, the most recent inventory data submitted must be for 2022 at the earliest.
No. However, companies that made a commitment to set science-based targets on or after July 15, 2022 are required to use our criteria which requires alignment with a 1.5°C-pathway for most companies.
The Science Based Targets initiative (SBTi) requires companies that meet either of the following two
criteria to set a FLAG science-based target:
i) Companies with land intensive activities in their value chain from the following FLAG-designated
sectors are required to set FLAG targets:
• Forest and Paper Products – Forestry, Timber, Pulp and Paper
• Food Production – Agricultural Production
• Food Production – Animal Source
• Food and Beverage Processing
• Food and Staples Retailing
• Tobacco
ii) Companies in any other SBTi-designated sector that have FLAG-related emissions that total
20% or more of overall emissions across scopes 1, 2 and 3.
If your company meets the criteria above, FLAG targets will be required and should be submitted along with other targets through SBTi Services. Please note that FLAG Targets can not be submitted individually and companies who already have a validated target will need to submit a Near Term Update + FLAG target. You can find more information on our FLAG sector page.
Should you have a question unanswered by these resources, please contact FLAG@sciencebasedtargets.org.
The following applies to companies that are required to set separate FLAG targets as per FLAG-C1 of the Forest, Land and Agriculture guidance.
Companies with existing science-based targets must submit FLAG targets within six months after the release of the final version of the GHG Protocol Land Sector and Removals Guidance. Businesses that are required to set a FLAG target and decide to set it after the release of the final version of the GHG Protocol Land Sector and Removals Guidance, must still commit to no-deforestation upon submission, with a target date no later than December 31, 2025.
Companies without an existing science-based target and are in the process of developing targets, will also be required to set FLAG targets upon submission.
As of April 2023, companies anticipating target recalculation for any reason or companies submitting net-zero targets are required to include FLAG targets.
Please find more information on the FLAG project implementation timelines in this blog post.
Companies are able to set near-term scope 3 emission reduction targets using the following methods:
Absolute contraction in line with 1.5°C or well-below 2°C.
Sectoral Decarbonization Approach in line with 1.5°C or well-below 2°C.
Supplier or Customer Engagement Targets.
Economic Intensity Targets.
Physical Intensity Targets.
More details are included in the new version of the criteria.
The SBTi’s target-setting requirements are based on GHG inventory accounting practices, as specified in the GHG Protocol Corporate Standard, Scope 2 Guidance and Value Chain Standard (Scope 3). Avoided emissions fall under a separate accounting system from corporate inventories and therefore do not play a role in emission reduction target-setting or achievement with the SBTi.
The SBTi requires that companies set targets based on emission reductions through direct action within their own boundaries or their value chains.
The use of carbon credits must not be counted as emission reductions toward the progress of companies’ near- or long-term science-based targets. This means that companies cannot purchase carbon credits as a substitute for emission reductions.
For more information on market-based accounting approaches, see What role do market-based accounting approaches play in target-setting with the SBTi?
When it comes to GHG emissions accounting, companies should follow guidance from the experts at the Greenhouse Gas Protocol (GHGP). Market-based accounting approaches include the use of certificates conveying emissions attributes that differ from the physical emissions attributes of a company’s activities.
The GHGP allows for market-based accounting for purchased steam, heat, electricity and cooling via the scope 2 market-based accounting approach. The GHGP does not provide guidance for market-based accounting for scope 1 or scope 3 emissions (with the exception of supplier- or customer-provided market-based emissions factors). Therefore, as part of the checks carried out during the target validation process, it is not currently possible for the SBTi to assess whether inventories that include market-based approaches to scope 1 and scope 3 emissions are aligned with the GHGP.
Other uses of market-based instruments, such as book-and-claim, are topics that require further research and clarification.
The SBTi is working with the GHGP to ensure we coordinate on requirements for corporate greenhouse gas inventories. As accounting standards evolve and further research is conducted by the SBTi, SBTi resources will be updated to reflect best practice.
As part of the SBTi’s MRV (Monitoring, Reporting, and Verification) project, the SBTi is conducting research into how companies achieve their targets and the parameters that should be considered for robust reporting of target progress, delivery and achievement. This research is for investigative purposes, and any updates to SBTi standards are subject to thorough consideration and approval in line with the SBTi’s governance.
The SBTi cannot guarantee support for legacy versions of Microsoft Excel, and recommends that users of its target-setting tools update to the latest version available.
In the event that submitted targets, even if matching or exceeding the output(s) of any of the SBTi's target-setting tools, fall short of the SBTi's ambition requirements, the Target Validation Team may deem the tool an output(s) to be erroneous. The tool output does not override target assessment criteria, and the validation team may consequently request target adjustment.