What Is Science-Based Targets?

Science-based targets are greenhouse gas emission reduction goals aligned with the level of decarbonization required to limit global warming to 1.5°C above pre-industrial levels, as outlined in the Paris Agreement. The Science Based Targets initiative (SBTi) provides the framework, methodology, and validation process for companies to set and verify these targets.

Unlike arbitrary or peer-benchmarked goals, science-based targets work backward from climate science. They answer the question: what rate of emission reduction does our company need to achieve for the world to stay within safe climate boundaries?

SBTi has become the credibility standard for corporate climate commitments. Over 4,000 companies have set or committed to science-based targets, representing significant portions of global market capitalization. For organizations claiming climate leadership, SBTi validation is increasingly expected—by investors, customers, and regulators.

Why Science-Based Targets Matter for Business Leaders

Climate commitments without scientific grounding are vulnerable to accusations of greenwashing. "Reduce emissions 20% by 2030" sounds meaningful but begs the question: is that enough? Science-based targets provide the answer, translating global climate goals into company-level accountability.

Investor pressure has made SBTi targets near-mandatory for large corporations. Climate Action 100+, the world's largest investor engagement initiative, expects portfolio companies to set science-based targets. Asset managers increasingly use SBTi commitment as a screening criterion. CDP questionnaires ask directly about science-based target status.

Beyond credibility, the target-setting process surfaces strategic insights. It forces organizations to understand their emissions profile in detail—where reductions are feasible, where investment is required, where business model changes may be necessary. Companies that complete the process typically emerge with clearer decarbonization roadmaps.

The regulatory trajectory reinforces urgency. Climate disclosure rules increasingly expect companies to explain how their climate strategies align with Paris Agreement goals. Science-based targets provide that alignment mechanism.

How Science-Based Targets Work

1. Commit Organizations submit a commitment letter to SBTi, signaling intent to set science-based targets within 24 months. Commitment is public—SBTi publishes a list of committed companies, creating accountability to follow through.

2. Develop Targets Using SBTi methodologies, develop near-term targets (5-10 year timeframe) and, for companies pursuing net-zero, long-term targets (by 2050 or sooner). Targets must cover:

• Scope 1 and 2 emissions: Required for all companies

• Scope 3 emissions: Required if Scope 3 represents 40%+ of total emissions (which it does for most companies)

SBTi provides sector-specific guidance and tools. The absolute contraction approach sets straight-line reductions from a base year. Sector-specific methods (available for some industries) allow intensity-based approaches that account for sector characteristics.

3. Submit for Validation Submit targets to SBTi for independent review. Validation assesses whether targets meet SBTi criteria:

• Aligned with 1.5°C pathway

• Cover required emission scopes

• Use approved methodologies

• Include appropriate timeframes

The validation process typically takes several months and may require iterations if initial submissions don't meet criteria.

4. Communicate Once validated, targets become public. SBTi publishes approved targets, and companies can use SBTi branding to communicate their commitment. Validation provides external credibility that self-declared targets lack.

5. Report Progress Companies must report progress annually, typically through CDP or equivalent disclosure. SBTi monitors whether companies are on track to meet targets. Failure to progress or report can result in target removal from SBTi's list.

Science-Based Targets vs. Related Terms

Science-Based Targets vs. Net Zero: Science-based targets define the rate of emission reduction to 2030 or 2035. Net zero is the end state—typically by 2050—where residual emissions are neutralized. SBTi's Net-Zero Standard requires both near-term science-based targets AND long-term net-zero commitments.

Science-Based Targets vs. Carbon Neutral: Carbon neutrality can be achieved through offsetting without actual emission reduction. Science-based targets require absolute or intensity-based reductions in the company's own emissions—offsetting cannot substitute for reduction.

Science-Based Targets vs. Climate Targets: Climate targets is a broad term for any emission-related goal. Science-based targets specifically means targets validated against Paris-aligned decarbonization pathways. Not all climate targets are science-based; science-based targets are a credible subset.

SBTi vs. Race to Zero: Race to Zero is a UN-backed campaign mobilizing net-zero commitments from non-state actors. SBTi is a partner initiative providing target-setting methodology. Companies can join Race to Zero through SBTi validation or other qualifying standards.

Common Misconceptions About Science-Based Targets

"Science-based targets are only for large corporations." SBTi has streamlined pathways for SMEs, with simplified validation processes and reduced fees. Small companies with genuine climate ambition can pursue science-based targets—and may face increasing pressure from large customers requiring validated targets throughout their supply chains.

"We can set our own targets and call them science-based." The term "science-based targets" specifically refers to SBTi-validated targets. Using the term without validation risks greenwashing accusations and regulatory scrutiny. Self-declared targets may be ambitious but don't carry the same credibility.

"Scope 3 targets are impossible because we don't control supplier emissions." Scope 3 targets don't require control—they require influence. Supplier engagement programs, procurement policies, product design choices, and customer education all reduce Scope 3 emissions. SBTi's Scope 3 guidance provides flexibility in how companies achieve reductions.

"Offsets can help us meet science-based targets." SBTi is explicit: offsets cannot count toward science-based target achievement. Targets must be met through actual emission reductions. Offsets may play a role in neutralizing residual emissions for net-zero claims but don't substitute for the decarbonization pathway.

"Once targets are set, the hard work is done." Target-setting is the commitment; delivery is the work. Many companies struggle to translate validated targets into operational changes. Science-based targets create accountability but not capability—execution requires dedicated strategy, investment, and cross-functional coordination.

When Science-Based Targets May Not Be the Right Starting Point

If your organization hasn't completed a comprehensive greenhouse gas inventory, target-setting is premature. You need to understand your emissions profile—across Scopes 1, 2, and 3—before committing to specific reduction pathways.

For companies in sectors without established SBTi methodologies, the path may be less clear. SBTi continues developing sector-specific guidance, but some industries face methodological gaps that complicate target-setting.

If leadership commitment to decarbonization is uncertain, pursuing SBTi validation risks public commitment without follow-through. The reputational damage from missing validated targets exceeds the benefit of initial commitment.

How Science-Based Targets Connect to Broader Business Systems

Science-based targets anchor climate strategy. They define the destination; strategy determines the route. Targets inform capital allocation (which decarbonization investments to make), procurement (supplier expectations), product development (embedded carbon requirements), and facilities planning (energy and efficiency).

Targets connect to sustainability reporting requirements. CSRD, SEC rules, and CDP questionnaires all ask about Paris alignment—science-based targets provide the validated answer. Target progress becomes a core reporting metric.

For organizations pursuing comprehensive ESG strategy, climate targets are one pillar. Science-based targets ensure the climate pillar is credible while broader ESG work addresses social, governance, and non-climate environmental dimensions.

Related Definitions

→ What Is Net Zero vs. Carbon Neutral?

→ What Is Scope 3 Emissions?

→ What Is ESG Strategy?

→ What Is Sustainability Reporting?