Science Based Targets Initiative (SBTi) Reporting

What is SBTi?

The Science Based Targets initiative (SBTi) is a climate action organisation that develops science-based global standards and guidance for companies and institutions that set greenhouse gas (GHG) reduction targets. It has become a crucial benchmark for companies with net-zero plans aligned with the Paris Agreement’s ambition of keeping global warming levels at 1.5°C.

The SBTi was created in 2014, through a partnership among the Carbon Disclosure Project (CDP), the UN Global Compact (UNGC), the World Resources Institute (WRI), and the World Wide Fund for Nature (WWF). Previously, no standard held existing corporate climate pledges accountable. Companies could set any target and face little to no evaluation and careful examination. The SBTi was built to establish a scientific baseline, yet now, it sits at the centre of corporate climate target-setting.

The SBTi itself develops the scientific and sector-specific standards, while the independent validation arm, SBTi Services, checks submitted targets against those standards before allowing publication. This distinction matters because it separates rule setting from target validation, which helps protect the credibility of the entire process.

What are science-based targets?

Science-based targets are simply GHG reduction goals that conform to and apply climate science. These targets are specific and quantifiable, following the latest science necessary to meet net-zero goals.

SBTi targets usually cover these scope emissions:

Scope 1 or direct emissions from company sources
Scope 2 or indirect emissions from purchased energy consumed by the company
Scope 3 refers to upstream and downstream indirect emissions associated with the supply chain and product lifecycle.

With those scopes, SBTi targets specify company commitments with numbers and deadlines. Examples of these targets are:

Cut absolute scope 1 and 2 GHG emissions by 50% by 2030, using 2022 as the base year.
Reduce scope 3 emissions from purchased goods and services by 30% per unit of revenue by 2030, from a 2021 base year.
Engage 90% of direct suppliers in setting their own science-based targets by 2027.

For many companies, scope 3 is often where the real weight of emissions exists. Supply chain emissions can account for over 90% of the overall carbon footprint, and this is also where supplier data can get complicated.

With science-based targets, SBTi companies test their understanding of their value chain and how they can effectively reduce their emissions. The SBTi has developed structured approaches to address these issues, from engaging suppliers to setting emission targets per material or commodity.

Why should businesses set science-based targets?

Companies undergo changes, experience risks, and continue to better their position and growth in the market. Science-based targets are there to help in the process for these reasons:

Identify and manage climate-related risks

The effects of the environment and climate change are serious, ongoing and long-term business risks. Flooding, heatwaves, drought, and supply disruptions affect operations, insurance, sourcing, transport costs, and financial performance. Science-based targets address these issues within the business and as a continuous contribution to global net-zero.

Gain Impact and Reputation Benefits

On the positive side, the SBTi’s data in 2025 shows that among 171 SBTi-validated companies, 91% saw a positive overall business impact. 95% of the companies also reported stronger reputation benefits, which is all the more reason a growing number of companies are validating their net-zero targets with the SBTi.

The 2025 SBTi research shows that the centre of growth is shifting. China, Japan, and India led proportional growth among major markets, followed by Singapore, Pakistan, and Indonesia, appearing among the fastest-growing markets. Healthcare, materials, and information technology were the fastest-growing sectors by proportion.

Strengthen Regulatory Alignment

Frameworks like the EU’s Corporate Sustainability Reporting Directive (CSRD) now require companies to explain how their climate targets align with the 1.5°C goal of the Paris Agreement. SBTi validation is the most recognised way to demonstrate alignment with both auditors and investors.

The growth of major markets also serves as a useful signal for Asian businesses and globally, with climate target-setting going beyond compliance in EU countries and the SBTi’s continuous development of its Corporate Net-Zero Standard.

SBTi’s Key Milestones

The SBTi has continuously scaled over the past decade and has become a widely used framework. These are the SBTi’s key milestones:

2014: SBTi was founded as a partnership between CDP, UNGC, WRI, and WWF.
2015: The first SBTi-validated corporate targets were approved, including those of Coca Cola Enterprises, and General Mills.
2021: SBTi launched the Corporate Net-Zero Standard, which was the first global science-based framework for corporate net-zero target setting.
2022: SBTi introduced the Forest, Land and Agriculture (FLAG) standard, which is the first, globally, for land-related impacts. SBTi also enforced a commitment compliance policy, which gives companies 24 months to validate their net-zero commitments
2024: The commitment compliance policy removed the commitment status of 239 companies, grounding the strictness and credibility of science-based targets. The same year, SBTi Services was established as a dedicated validation subsidiary.
2026: Over 10,000 companies have validated science-based targets. Also, the Corporate Net-Zero Standard version 2.0 was released.

As of the latest data, around 13,400 SBTi companies have developed science-based targets, and more than 10,800 have validated targets. 2,529 of these companies have net-zero targets.

What is the goal of the SBTi?

SBTi’s core goal is to help companies reduce emissions effectively through science and at the pace needed to reach net-zero by 2050. This aligns with the Paris Agreement and the Intergovernmental Panel on Climate Change (IPCC) assessment of the impacts and the direction needed to meet the 1.5°C global limit. This all means targets must cover real emissions cuts, aiming for rapid reduction, where carbon credits alone cannot replace the work of cutting emissions across operations, electricity use, suppliers, logistics, and product use.

What is the Corporate Net-Zero Standard?

The SBTi Corporate Net-Zero Standard gives companies a framework for setting science-based net-zero targets.

Under the current SBTi approach, companies need near-term and long-term targets. These near-term targets push for emissions cuts in the next five to ten years. Long-term targets show how the business should move toward net-zero by 2050.

SBTi is now revising the Corporate Net-Zero Standard. The second consultation’s draft of Version 2.0 was released in November 2025. Under the standard, companies must:

Set their near-term SBTi targets to reduce scope 1, 2, and significant scope 3 emissions by roughly 50% by 2030.
Set their long-term SBTi targets to cut emissions by at least 90% across their value chain by 2050 or earlier than that.

Given that it is still in its draft form, the standard’s timeline follows this timeline:

Companies can still use the Corporate Net-Zero Standard version 1.3 and Near-Term Criteria version 5.3 until December 31, 2027.
Companies are to adopt the Corporate Net-Zero Standard version 2.0 once it is published.
Companies must use the Corporate Net-Zero Standard version 2.0 starting January 1, 2028.

How can companies apply to the SBTi for ESG reporting?

The SBTi guidance and methodology involve real emissions measurement across the three scopes, internal governance, and external review. The process runs through five steps, with the technical work sitting mostly in the first two.

1. Commit

A company may submit a formal commitment to the SBTi Services to set a science-based target. For some businesses, this step sends a public signal before they validate the target. Although this step is not always required, companies that are ready to submit can move directly to validation.

2. Develop

The company builds its targets using SBTi standards, sector guidance, and calculation tools. This stage is where the bulk of the work sits, as the company must define boundaries, calculate emissions, assess scope 3 relevance, and decide what reductions are credible. That means companies need to set their science-based targets with these steps and criteria.

Choose a base year: This step requires companies to go over their emissions data, including reliable scope 1, 2, and 3 emissions, and excluding carbon credits and avoided emissions.
Inventory emissions: Companies need to map all their emission sources, from fossil and bioenergy data to suppliers and value chains.
Define target boundaries: Including scope 1 and 2 emissions is mandatory. Long-term net-zero SBTi targets also include Scope 3 emissions, especially when they make up 40% or more of total emissions.
Set timeframes: Companies must identify how long they plan to achieve their targets that are aligned with the 1.5°C target, especially for scopes 1 and 2. Near-term targets run for 5-10 years, while long-term targets reach 2050 at the latest, covering at least 90% of scope 3 emissions.
Apply the right SBTi tools: The SBTi resources and calculation models can be used, depending on the SBTi guidance applicable to particular businesses, such as the Sectoral Decarbonisation Approach. An example of a sector-specific resource is the FLAG guidance for agriculture, forestry, and land use.

3. Submit

The company’s targets are submitted through the SBTi Services validation process. SBTi Services reviews whether the targets meet the applicable criteria, and if the target does not meet the standard, the company will need to revise it.

4. Communicate

Once validated, the company can publicly announce its targets. This should be done carefully, as claims should match the validation status and avoid overstating what has been achieved.

A validated target is not proof that a company has decarbonised, but it does prove that the target has passed the SBTi review.

5. Disclose

Companies need to report progress each year. Annual disclosure requires clean data, repeatable workflows, and clear evidence. A spreadsheet-heavy process can become a problem once the organisation scales.

How Presgo Supports SBTi Target-Setting and Reporting

Science-Based Targets initiative emissions reporting does not end once targets have been validated. As companies pursue their net-zero efforts and annual disclosures, the risk remains that data quality and reported progress may weaken over time to withstand external review.

Presgo is an AI-native ESG reporting software built to handle that continuous work and address long-term performance. It automates data collection and analysis, narrative generation, and report building and provides expert support and SBTi guidance. Presgo connects scope 1, 2, and 3 emissions data to the audit trails and reporting structures SBTi requires, especially for its Corporate Net-Zero Standard.

Presgo’s customisable solutions for SBTi reporting include: