SBTi 101: The Science Based Targets Initiative Explained
A comprehensive guide to setting science-based targets, understanding the net-zero framework, and implementing corporate climate strategy aligned with the Paris Agreement.
By Koorosh Behrang • • 8 min read
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10,000+
Companies with validated SBTi targets
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1.5°C
Global warming limit for science-based targets
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2050
Latest net-zero year for long-term targets
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What is the Science Based Targets Initiative? |
The Science Based Targets initiative (SBTi) is a global corporate climate action organization that enables businesses and financial institutions to set greenhouse gas (GHG) emissions reduction targets aligned with the latest climate science.
These targets are considered "science-based" if they align with what climate science says is necessary to meet the goals of the Paris Agreement — specifically, limiting global warming to 1.5°C above pre-industrial levels and achieving net-zero emissions by 2050 at the latest.
“Science-based targets ensure that corporate climate commitments are credible, measurable, and aligned with what climate science says is needed to address the climate crisis.”
The initiative is a partnership between four major organizations:
| Carbon Disclosure Project (CDP) |
| United Nations Global Compact (UNGC) |
| World Resources Institute (WRI) |
| World Wide Fund for Nature (WWF) |
The Bottom Line
As of early 2026, over 10,000 companies worldwide have validated targets through SBTi, demonstrating widespread corporate commitment to science-aligned climate action.
The SBTi provides a clear methodology, sector-specific guidance, and a third-party validation process that ensures targets are rigorous and credible.
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The SBTi Corporate Net-Zero Framework |
The SBTi Corporate Net-Zero Standard defines a clear, science-aligned framework for achieving net-zero emissions. This framework consists of four integrated pillars:
Near-Term Science-Based Targets5-10 year emission reduction targets for Scope 1, 2, and 3 emissions, aligned with limiting warming to 1.5°C. |
Long-Term Science-Based TargetsReduce absolute emissions by 90% or more by 2050 to align with net-zero pathways. |
Carbon Removal & NeutralizationUse carbon removal or sequestration to neutralize residual emissions that cannot be eliminated through reduction alone. |
Beyond Value-Chain MitigationInvest in emissions reduction projects outside your organization's value chain to contribute to broader climate goals. |
Together, these four pillars create a comprehensive pathway for organizations to achieve true net-zero emissions while contributing to global climate mitigation efforts. The framework ensures that targets are ambitious, science-aligned, and credible.
“The net-zero framework transforms corporate climate action from aspirational goals into measurable, time-bound commitments backed by rigorous science.”
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The 5-Step Target Setting Process |
The SBTi provides organizations with a structured, five-step methodology to ensure targets are rigorous, scientifically grounded, and achievable:
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Step 1
Select Base Year
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Step 2
Calculate Emissions
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Step 3
Set Boundaries
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Step 4
Choose Target Years
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Step 5
Calculate Targets
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Here's what each step entails:
Step 1: Select a Base Year
Choose a historical year as your baseline for measuring emissions reductions. For near-term targets, this is typically within the last 5 years. For long-term targets, the same base year should align with near-term targets.
Step 2: Calculate Emissions Baseline
Conduct a comprehensive GHG inventory covering at least 95% of Scope 1 & 2 emissions and 100% of relevant Scope 3 categories. This provides the foundation for your targets and ensures scientific credibility.
Step 3: Set Scope Boundaries
For near-term targets: minimum 95% of Scope 1 & 2 emissions and 67% of relevant Scope 3 categories. For long-term targets: 90% of Scope 1 & 2 emissions and all relevant Scope 3 categories. These boundaries define the scope of your commitment.
Step 4: Choose Target Years
Select your target year(s) for achieving reductions. Near-term targets must be 5-10 years from the base year. Long-term targets should extend to 2050 or later for net-zero alignment. The timeline demonstrates your commitment level.
Step 5: Calculate Reduction Targets
Use SBTi-approved methodologies (e.g., Sectoral Decarbonization Approach, Absolute Contraction Approach) to calculate the specific percentage reduction required for your organization. This ensures alignment with global climate pathways.
Pro Tip: Use SBTi Resources
The SBTi provides detailed technical guidance documents, sector-specific methodologies, and an online target-setting tool to support you through each step. Leverage these resources to ensure compliance and accuracy.
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Key Considerations & Requirements |
To maintain the credibility and rigor of SBTi-validated targets, organizations must meet several critical requirements throughout their climate journey:
1.5°C Ambition for Scope 1 & 2
Scope 1 and 2 targets must align with limiting warming to 1.5°C. This is a non-negotiable requirement that ensures your organization contributes meaningfully to global climate goals.
Annual Emissions Reporting
Commit to transparent, annual reporting of your emissions progress against targets. This accountability mechanism ensures stakeholders can track your climate performance year-over-year.
Five-Yearly Target Revalidation
Every five years, you must revalidate your targets to ensure they remain aligned with the latest climate science and updated global mitigation pathways. This ensures continuous rigor and climate ambition.
The Bottom Line
Meeting SBTi requirements demonstrates genuine climate commitment. It's not just about setting targets—it's about maintaining transparency, staying aligned with climate science, and continuously raising your ambition.
Sector-Specific Guidance
SBTi provides tailored guidance for specific sectors including power generation, agriculture, forestry, land use, maritime shipping, and financial institutions. If your industry has sector-specific requirements, ensure your targets align with those guidelines for maximum credibility and impact.
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Implementing SBTi: Canopy for Residual Emission Procurement |
While aggressive emission reduction is the priority under SBTi targets, organizations also need reliable solutions to address residual emissions—the portion that cannot be eliminated through operational changes alone. Canopy is designed specifically for residual emission procurement, helping you source, verify, and manage high-quality carbon credits, offsets, and removals at scale.
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Calculate
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Curate
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RFQ
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Optimise
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Report
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Residual Emission CalculationQuantify What Reduction Can't Cover Calculate residual emissions at corporate, product, or customer level across Scope 1+2+3. Set neutralisation targets, benchmark against peers. SBTi V2 OER tier alignment built in. |
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AI-Powered Credit CurationDiscover & Shortlist the Right Instruments Match your residual profile with curated offsets, removals, and carbon credits ranked by quality, geography, and SBTi eligibility. Filter by avoidance, NBS removals, or Tech CDR. |
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RFQ & Procurement SupportBest Price. No Intermediaries. Send RFQs directly to project developers and suppliers. Compare quotes side-by-side. Manage full procurement cycle from RFQ through PO, invoicing, credit delivery, and retirement. |
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Portfolio Optimisation & ProcurementBuild the Optimal Portfolio for Your Target & Budget AI-generated portfolio strategies (High Quality, Removals-focused, Balanced, Cost Effective) with budget awareness. Supports Spot and Multi-Year contracts. |
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Reporting & ComplianceAudit-Ready Reports. Verified Claims. Generate compliance reports for CSRD, AB1305, VCMI disclosures. Full inventory ledger of offsets with retirement status. Push data to CDP Portal. |
Platform + Expertise
Canopy is built to work alongside your advisory team to develop and execute a holistic SBTi strategy. From residual emissions quantification to credit procurement to compliance reporting, Canopy provides the transparency and operational efficiency needed to scale your carbon removal programme with confidence.
SBTi Readiness: As you implement SBTi targets, Canopy ensures your residual emission procurement strategy is aligned with SBTi's rigorous standards for additionality, permanence, and quality. This translates to credible climate action that withstands stakeholder scrutiny.
Talk to our team to learn how Canopy can accelerate your pathway to science-based climate targets, streamline carbon removal procurement, and future-proof your compliance documentation.