Set a target as a small or medium-sized enterprise (SME)
Join the SMEs leading the way to a net-zero economy. Start taking ambitious climate action with science-based emissions reduction targets.
The SME target validation route enables eligible businesses to bypass the initial stage of committing to set a science-based target and the standard validation process. Companies that meet the SME eligibility criteria can choose to set targets through the SME streamlined validation route, or through the standard route.
For scheduled maintenance and system improvements, new submissions for Commitments, Corporate, SME, or Financial Institution targets are paused from 1 October until 29 October. Target validations, commitment processing, and publications to our Target Dashboard will continue uninterrupted through the whole of October. Only new submissions of commitments and targets will pause.
The planned pause of submissions is anticipated to have minimal impact on overall validation timelines. If you would like to be notified when submissions reopen, please sign up here and we will send you an email notification.
Eligibility
Companies may set targets through the streamlined validation route for SMEs if all criteria points are met:
Have <10,000 tCO2e across scope 1 and location-based scope 2
Are not classified in the Financial Institutions (FIs) and Oil & Gas (O&G) Sectors*
Are not required to set targets using sector-specific criteria (such as the Sectoral Decarbonization Approaches) developed by the SBTi (see the SBTi’s sector guidance documents for requirements)
Are not a subsidiary of a parent company whose combined businesses fall into the standard validation route
And three or more are true:
Employ <250 employees**
Turnover of <€50 million**
Total assets of <€25 million**
Are not in a mandatory FLAG sector***
*Mandatory FLAG sector companies that meet all other criteria are not affected by this criterion. Please see the second set of eligibility criteria if you operate in a FLAG sector.
**CSRD alignment. The turnover and total asset figures were updated in December 2023 in line with the latest CSRD definitions and thresholds for SMEs.
***See Criterion 1 of the FLAG Guidance
SMEs have three target-setting options
Near-term targets:
Near-term science-based targets are absolute scope 1 and 2 GHG emissions reduction targets that should be achieved by 2030, from a predefined base year. SMEs often lack the resources and capabilities needed to set scope 3 targets. Because of this, SMEs are not required to set near-term targets for their scope 3 emissions. Instead, they must commit to measure and reduce these emissions.
Near-term maintenance targets:
Enable companies that have achieved zero scope 1 and/or 2 emissions to sustain their efforts and continuously improve. SMEs choosing this option must follow GHG Protocol standards, report their progress annually, and provide supporting documentation for target validation. Additionally, they can select the maintenance approach that aligns with their specific emissions profile.
Net-zero targets:
To be eligible to set a net-zero target, SMEs must first set near-term targets aligned to a 1.5°C pathway.
Net-zero targets include:
- Long-term science-based targets, which are absolute scope 1, 2 and 3 GHG emissions reduction targets that should be achieved by 2050, from a predefined base year
- A commitment to neutralize any unabated emissions when the long-term science-based target is achieved.
SME service costs
Setting new near-term targets or replacing previous near-term targets: $1,250 USD*
Setting new net-zero targets ONLY (only SMEs with existing validated 1.5°C near-term targets are eligible for this option): $1,250 USD
Setting near-term targets AND net-zero targets: $2,500 USD*
Resources
- SME Terms and Conditions
- FAQs for SMEs
- Target Validation Application Checklist for SMEs
- SME Climate Hub tools (for smaller SMEs in earlier stages of developing emissions inventory)