
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.
Small and medium sized enterprises (SMEs) can submit targets through an exclusive streamlined target validation route. This allows SMEs to bypass the initial stage of committing to set a science-based target and the standard validation process.
Eligibility
From 1 January 2024, 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
Do not own or control maritime transport vessels
Do not own or control non-renewable power generation assets
Are not classified in the Financial Institutions (FIs) and Oil & Gas (O&G) Sectors*
Are not a subsidiary of a parent company whose combined businesses fall into the standard validation route*
And two or more are true:
Employ <250 employees*
Turnover of <€40 million**
Total assets of <€20 million**
Are not in a mandatory FLAG sector***
*Same as Version 4.0 SME criteria that will cease to be in effect on 1 January 2024
**CSRD alignment
***See Criterion 1 of the FLAG Guidance
SMEs have two 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.
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
Until December 31, 2023:
- Setting new near-term targets or replacing previous near-term targets: $1,000 USD*
- Setting new net-zero targets ONLY (only SMEs with existing validated 1.5°C near-term targets are eligible for this option): $1,000 USD
- Setting near-term targets AND net-zero targets: $2,000 USD*
Effective January 1, 2024:
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*
Case Studies
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