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Participating in the SBTi

We encourage financial institutions and companies from all sectors and of all sizes to develop science-based targets. We acknowledge differences between business areas, which is why we offer sector-specific guidance and a streamlined SME route.

The SBTi is especially keen to welcome companies in the highest-emitting sectors, who play a crucial role in ensuring the transition to a zero-carbon economy.

The current exceptions are fossil fuel companies:

Commitments and validations for fossil fuel companies have been paused while sector guidance is developed.

Small and Medium Enterprises (SMEs) can validate their near-term and net-zero targets and become part of the initiative by submitting to the streamlined target validation system for SMEs.

The SBTi reserves the right to perform due diligence before and after accepting new commitments and while reviewing submitted targets.

The SBTi does not currently assess targets for cities, local governments, public sector institutions, educational institutions or non-profit organizations. However, we encourage these stakeholders to consider science-based target setting methods on their own. Cities can register their interest in setting targets through the Science Based Targets Network (SBTN).

set a target

We strongly encourage companies to follow the step-by-step process and commit to developing a target before submitting one for validation.

By committing to set science-based targets before submitting targets for validation, organizations are recognized as “committed to setting a science-based target" on our website, as well as the We Mean Business Coalition website. Companies participating in the UN Global Compact will also be recognized on their website.

Small and Medium-Sized Enterprises (SMEs) have a distinct process that doesn’t involve the commitment stage. They can directly submit near-term or net-zero targets for approval through our streamlined SME target-setting route.

Commit to setting a target

Yes, companies can and are encouraged to set targets using the SBTi's Corporate Net-Zero Standard - the world's first Standard for science-based corporate net-zero targets.

SMEs may also set net-zero targets.

The Financial Institution Net-Zero Standard is under development.

We offer comprehensive guidance for companies setting science-based targets and support committed companies to understand which resources are available and appropriate for their needs. This includes guidance for specific sectors and wide range of tools and resources.

Once companies have reviewed these, they need to choose an appropriate approach and methodology to set their science-based target.

Companies can also browse our case studies and YouTube channel (including recordings of relevant webinars) for guidance in the target-setting journey. To stay up-to-date on our latest resources, events and other developments, companies are encouraged to subscribe to our newsletter and connect with us on Twitter and LinkedIn.

For a more detailed overview of how to develop and submit your target for validation, including the guidance available, please see our Getting Started Guide.

Currently, companies in all sectors apart from oil and gas can set science-based targets, aligned with the SBTi criteria.

Most sectors will use one of two methods for developing their science-based targets: the Absolute Contraction Approach (used by four out of five companies with approved science-based targets) or the Sectoral Decarbonization Approach (SDA).

Unless your sector is listed below, please see page three of our how-to guide to learn which methodology your company should use, according to your sector and other criteria.

For some sectors / industries, separate sector-specific methodologies, frameworks and requirements have been developed:

We encourage stakeholders to participate in the consultation processes for additional sector-specific guidance and methods:

(Please note, companies in these sectors can already set targets using our existing methods, with the exception of oil and gas)

view sector guidance

The SBTi understands that science-based targets can be complex and difficult for companies to always communicate accurately. It is vital that details around science-based targets are communicated accurately to ensure their credibility is maintained. That’s why we have detailed communications guidance, which we share with all committed companies, to support them with communicating about their commitment and target.

When we see a company misrepresenting their science-based target(s) or commitment(s) in their external communications, we will make contact, highlight the issue and ask them to make a correction.

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?

We have launched a pathway for the power sector, allowing electric utilities to set science-based targets aligned with 1.5°C. Power sector companies must follow this pathway when setting science-based targets.

Dozens of power generation companies from around 20 countries worldwide already have approved targets or commitments. Join them today - commit to setting a target and use our guidance to develop and submit a target for approval:

Thank you for your interest in supporting companies to develop science-based targets. As climate science evolves and frequently requires the SBTi to update materials and resources, we do not help develop, review, endorse or certify any third party tools. However, the resources that the SBTi uses to assess companies’ science-based targets are publicly available - see below. All tools to create science-based targets should be developed using these resources, and the resources should be reviewed at least every three months to ensure continued alignment. While you are free to use our resources to develop target setting tools, you may not include the SBTi logo on your tool or promotional materials without permission, nor claim endorsement, certification or approval by the SBTi.

In March 2022, the SBTi enforced a temporary pause on the validation of targets from automakers. This pause was lifted on 20th March 2024. The publication of the Land Transport Guidance includes a new method for automakers to set 1.5°C emissions reduction targets. For the first time, this guidance aligns automakers’ largest source of emissions - scope 3 category 11 ‘use phase’ i.e. those from driving sold vehicles - with 1.5°C.

For any questions contact transport@sciencebasedtargets.org

Enabling science-based emissions reductions for fossil fuel companies is complex and the SBTi is taking a cautious and deliberate approach. As always, our aim is to develop robust methodologies that will support decarbonization at the pace and scale required by science.

Due to the developing status of our method, in addition to the existing SBTi policy to pause the validation of fossil fuel sector targets, we are also pausing commitments from these companies. During this period, commitments will not be accepted from companies or subsidiaries in categories 1.1 below. This policy is effective immediately and removal of previous commitments by oil and gas sector companies has been completed.

The SBTi reserves the right to remove other committed companies that, after careful evaluation, are considered to fall within category 1 below. Companies subject to this policy with targets that were approved prior to the policy's implementation will remain valid for five years from the approval date.

1. Companies that cannot commit to the SBTi until the oil and gas method is finalized.

  • 1.1 Companies with any level of direct involvement in exploration, extraction, mining and/or production of oil, natural gas, coal or other fossil fuels, irrespective of percentage revenue generated by these activities, i.e. including, but not limited to, integrated oil and gas companies, integrated gas companies, exploration and production pure players, refining and marketing pure players, oil products distributors, gas distributors and retailers and traditional oil and gas service companies (except as noted in category 2 below).

2. Companies that can join the SBTi

  • 2.1 Companies that derive less than 50% of revenue from a) sale, transmission and distribution of fossil fuels, or b) providing equipment or services to fossil fuel companies (see 1.1).
  • 2.2 Companies with less than 5% revenue from fossil fuel assets (e.g. coal mine, lignite mine, etc.) for extraction activities with commercial purposes.
  • 2.3 Electric utilities that mine coal for their own power generation.
  • 2.4 Subsidiaries of fossil fuel companies (see 1.1) may join the SBTi if the subsidiary itself is not considered a fossil fuel company.

    SBTi has discretion to evaluate the eligibility of fossil fuel company subsidiaries on a case-by-case basis based on the subsidiaries’ operational model and relevance of its emissions to the parent organization. Subsidiaries that are established for the sole purpose of setting an SBT on a portion of a fossil fuel companies’ GHG inventory are not permitted to join SBTi.

    For transparency, subsidiaries who set targets but whose parent companies are ineligible will be identified via a footnote in their target wording.

In summary, the SBTi is continuing work on the oil and gas methodology. Until this method is final, the following will be put in place:

  • Companies that fit category 1 with commitments will be removed from the SBTi target dashboard
  • The SBTi will no longer accept commitments and/or validate targets for companies that fit category 1

This policy will be reviewed and updated regularly to ensure it is aligned with the latest SBTi position. Please see our latest release on Oil and Gas Sector guidance here. For any questions, contact the team at OGSector@sciencebasedtargets.org.

Policy change log

  • 07/19/2022 - policy updated to clarify approach regarding subsidiaries of fossil fuel companies
  • 04/19/2022 - policy updated to improve clarity
  • 03/07/2022 - policy update published
Visit the oil and gas sector page

All companies involved in the sale, transmit or distribution of natural gas and/or other fossil fuels products shall set near-term and long-term scope 3 targets for the “use of sold products” category that are at a minimum consistent with the level of decarbonization required to keep global temperature increase to 1.5°C, irrespective of the share of these emissions compared to the total scope 1, 2, and 3 emissions of the company, company's sector classification, or whether fossil fuel sale/distribution is the company's primary business. Customer engagement targets as described in C19 are not eligible for this criterion.

For other outstanding questions please contact OGsector@sciencebasedtargets.org.

The SBTi had previously accepted commitments from all companies in which a sector development was underway. The O&G sector was treated similarly to other sectors. However, from the project work carried out thus far it has become apparent that science-based emissions reductions for the O&G sector and broader fossil fuels sectors are complex and the SBTi is taking a cautious and deliberate approach. As always, our aim is to develop robust methodologies that will support decarbonization at the pace and scale required by science.

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 majority of companies setting new targets (after 15 July 2022) are only accepted if they are consistent with limiting global warming to 1.5°C.

Existing targets in line with well-below 2°C or 2°C that were set before the new criteria was introduced continue to be valid. Companies in the finance sector can also still set science-based targets in line with well-below 2°C, but an ambition update has been proposed. See the finance sector page for more information.

Companies are able to set near-term scope 3 emission reduction targets using the following methods:

  1. Absolute contraction in line with 1.5°C or well-below 2°C.

  2. Sectoral Decarbonization Approach in line with 1.5°C or well-below 2°C.

  3. Supplier or Customer Engagement Targets.

  4. Economic Intensity Targets.

  5. Physical Intensity Targets.

More details are included in the new version of the criteria.

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