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Participating in the SBTi

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.

The SBTi 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 the SBTi's case studies and YouTube channel (including recordings of relevant webinars) for guidance in the target-setting journey. To stay up-to-date on the latest resources, events and other developments, companies are encouraged to join the SBTi's mailing list and follow on X and LinkedIn.

For a more detailed overview of how to develop and submit your target for validation, including the guidance available, please see the Procedure for Validation of Targets and 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:

• Power sector

• Financial institutions

• Forestry, Land and Agriculture

• Aviation

• Cement

• Chemicals

• Maritime

• Land Transport

• Buildings

• Steel

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

• Chemicals

• Oil and gas

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

The SBTi is revising its sector-specific guidance for electric utilities to update it into a Power Sector Standard. This standard will contain criteria and recommendations for companies operating in electric utilities and power generation to set 1.5°C-aligned near- and long-term science-based targets, within the unique context of the sector.

The power sector is also undergoing a major revision to include companies that are already below the current power GHG emission threshold and other types of companies/ activities identified by the power sector EAG members. Further information will be provided on the development process in 2025.

• Download the guidance.

• Download the science-based target setting tool

• Power sector page

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.

• Information on eligible methods:

  • Near-term target setting: SBTi Criteria Assessment Indicators page 6.

  • Net-zero (near- and long-term) target setting: Net-Zero Standard - page 40, table 6.

• Criteria applicable to companies from all sectors is available in SBTi Criteria Assessment Indicators.

• Sector specific requirements:

  • Supplementary sector-specific guidance is listed in the SBTi Criteria Assessment Indicators.

    • Sector specific guidance is only mandatory for companies in the following sectors:
      • Power
      • Aviation
      • Forest, land and agriculture (FLAG) (following the release of the FLAG guidance in September 2022)

• Explanation about emissions allocation within scope 3 in the Procedure for Target Validation page 12.

• The SBTi validation team has outlined some common mistakes to keep in mind.

• The SBTi tools for near-term and net-zero science-based targets provide the minimum ambition for the selected target setting method.

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

Due to the developing status of its fossil fuel sector work, the SBTi has paused all commitments and validations of targets from the fossil fuel sector. During this period, commitments will not be accepted from companies or subsidiaries in category 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 evaluates the eligibility of subsidiaries of fossil fuel companies on a case-by-case basis. The subsidiary’s operational model and relevance of its emissions to its parent company will be assessed. Subsidiaries that are established for the sole purpose of setting science-based targets 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.
  

This policy will be reviewed and updated regularly to ensure it is aligned with the latest SBTi position. Further updates will be shared later in 2025. For any questions, contact the team at OGSector@sciencebasedtargets.org.

As per Near-Term C22 of the SBTi Criteria Assessment Indicators 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.

More guidance is detailed in C23 on the 50% revenue threshold for companies with fossil fuel activities.

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

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.

The Science Based Targets initiative develops the standards and guidance for businesses to reduce their greenhouse gas emissions in line with science, including establishing policies, procedures, and leading the underlying research.

If you have a question about the Science Based Target initiative its standards and guidance, visit https://sciencebasedtargets.org/contact

If you have a question relating to the validation of targets or validation services, please visit https://sbtiservices.com/contactus