In an era where climate change poses significant risks to businesses and economies, the Science Based Targets initiative (SBTi) has emerged as a pivotal framework guiding companies toward meaningful and measurable climate action. This blog delves into the essence of SBTi, its significance, and the steps companies can take to align with its standards.

Understanding the Science Based Targets initiative (SBTi)

Established in 2015, the SBTi is a collaboration between CDP, the United Nations Global Compact, World Resources Institute (WRI), and the World Wide Fund for Nature (WWF). Its primary objective is to assist companies in setting greenhouse gas (GHG) emissions reduction targets that are in line with the latest climate science, aiming to limit global warming to well below 2°C, preferably 1.5°C, compared to pre-industrial levels.

By providing a clear pathway for companies to reduce emissions, the SBTi ensures that corporate climate goals are both ambitious and scientifically grounded.

Why It Matters for You as a Company?

Even if sustainability isn’t your core driver, external pressures increasingly make climate action unavoidable. Customers, investors, and large buyers are asking for sustainability data, especially Scope 3, as part of procurement and reporting requirements. Aligning with frameworks like SBTi helps businesses stay competitive, meet rising expectations, and avoid being left behind.

Why is SBTi Important for Businesses

Today’s businesses face increasing pressure—from regulators, customers, investors, and even employees—to demonstrate real climate action. Setting science-based targets is one of the clearest and most credible ways to do this.

• Credibility and Transparency: Targets validated by SBTi are recognized globally, enhancing a company's reputation among stakeholders.
• Investor Confidence: Demonstrating a commitment to science-based targets can attract environmentally conscious investors.
• Regulatory Preparedness: Aligning with SBTi positions companies favourably concerning emerging climate-related regulations.
• Operational Efficiency: Pursuing emission reductions often leads to innovations and efficiencies, resulting in cost savings.

The Rapid rise of SBTI commitments

As of early 2025, more than 10,000 companies have committed to setting science-based emissions reduction targets through the SBTi. Of these, over 7,000 companies have had their targets officially validated. This marks a dramatic increase from the 4,200 companies reported at the end of 2023—showing that climate-aligned action is rapidly becoming the norm across industries and regions.

SBTI-Target Setting Process

Setting a science-based target isn’t just about choosing a number and aiming for it — it’s a detailed process that helps companies align their emissions reduction goals with what the climate actually needs. Let’s break down what the target-setting process looks like, and how it varies depending on your business type and emissions.

Is SBTi the Only Way to Set Climate Targets?

While the SBTi is one of the most recognized frameworks for setting emissions reduction targets, it’s not the only one. Other frameworks and standards that companies may encounter include:

• CDP (Carbon Disclosure Project) – A global disclosure system that helps companies measure and manage their environmental impacts.
• TCFD (Task Force on Climate-related Financial Disclosures) – Focuses on climate-related financial risk disclosure, increasingly mandatory in some jurisdictions.
• GHG Protocol – A foundational accounting standard for measuring emissions.
• ISO 14064 – Provides specifications and guidance for the quantification and reporting of GHG emissions.

What makes SBTi different?

SBTi focuses specifically on aligning emissions targets with climate science to keep global temperature rise below 1.5°C. It offers clear pathways and third-party validation, making it the go-to framework for ambitious, science-aligned corporate climate targets.

Scope 1 and 2 vs. Scope 3 Emissions

Before setting targets, companies need a clear understanding of their emissions sources, categorized into:

• Scope 1: Direct emissions from owned or controlled sources (e.g., company vehicles, on-site fuel combustion).
• Scope 2: Indirect emissions from the generation of purchased electricity, heating, and cooling.
• Scope 3: All other indirect emissions in a company’s value chain, such as supplier emissions, employee commuting, product use, and end-of-life disposal.

For most companies, Scope 3 makes up the majority of emissions which is often over 80%. That’s why SBTi requires companies to set Scope 3 targets if these emissions account for more than 40% of their total footprint.

Scope 1 and 2 reductions can typically be achieved through internal operational changes, while Scope 3 requires collaboration across the supply chain and sometimes customer engagement.

Different Paths for Different types of Companies

Not every company is built the same — and SBTi gets that. That’s why it offers different routes depending on who you are and how your emissions work.

For Corporates: Larger companies with over:

• More than 250 employees
• More than €50 million in annual turnover

These will go through a full validation process with SBTi. This includes near-term targets (for the next 5–10 years) and a longer-term net-zero strategy. It’s thorough but helps ensure your plans are truly science-aligned.

For SMEs (Small and Medium Enterprises) with

• Less than 250 employees
• Less than €50 million in annual turnover

The process is much simpler for SMEs. You can commit to SBTi with standard targets and don’t necessarily have to set Scope 3 targets. That means fewer resources needed, while still showing your climate leadership.

For Financial Institutions: Things get more complex here. If you’re a bank, asset manager, or insurer, SBTi expects you to address financed emissions- the carbon footprint of the companies and projects you invest in. It’s a challenging but crucial part of driving systemic change.

Common Pitfalls with SBTi (And How to Avoid Them)

Setting science-based targets is a strong step forward — but it can get tricky if you're not prepared. One common issue is setting targets after you’ve already made big emission cuts. In this case, meeting the remaining SBTi goals can be more difficult and expensive.

Tip: It’s often better to commit early, so your full reduction journey aligns with SBTi from the start.

Another challenge is underestimating Scope 3 emissions, which often make up the bulk of a company’s footprint. Start with estimates, and refine the data over time.

How ClimateCamp Helps You Navigate the SBTi Journey

Setting meaningful science-based targets begins with accurately measuring your current emissions footprint. ClimateCamp supports organizations in calculating emissions across all scopes in alignment with the GHG Protocol — the most widely used global standard for GHG accounting.

Scope 1 and 2 Emissions:

These include direct emissions from owned or controlled sources (Scope 1) and indirect emissions from purchased electricity, heat, or steam (Scope 2). ClimateCamp streamlines the data collection process by integrating with internal systems and guiding sustainability teams through structured data inputs, ensuring reliable and comprehensive reporting.

Scope 3 Emissions – A Strategic Focus:

Scope 3 emissions — which cover all other indirect emissions that occur across a company’s value chain — often represent the largest share of a company’s carbon footprint. Measuring them can be complex, involving upstream and downstream activities such as purchased goods, transportation, product use, and end-of-life treatment. ClimateCamp places particular emphasis on Scope 3 by helping companies identify relevant categories, engage suppliers, estimate missing data, and build a traceable and auditable emissions baseline. This focus enables more informed decision-making and credible SBTi target-setting, especially for companies with extensive value chains.

Retrieving primary data from suppliers

• To speed up the onboarding process, ClimateCamp uses artificial intelligence to extract key data — such as emissions figures and reduction targets — from available sustainability reports. This reduces the need for manual data entry and accelerates the time it takes to understand a company’s climate maturity.
• The system maintains up-to-date records by automatically syncing with the SBTi database, helping you easily identify which of your suppliers have existing SBTi targets and track their progress against the latest standards.

Conclusion

Setting science-based targets isn’t just about climate responsibility — it’s about staying competitive in a world that’s rapidly aligning with low-carbon expectations. Whether you’re driven by regulation, customer demand, investor pressure, or supplier requirements, the SBTi offers a credible way to take action and demonstrate leadership.

With platforms like ClimateCamp, the path becomes clearer. From mapping your emissions, particularly Scope 3, to keeping pace with evolving standards and supplier engagement, you’re better equipped to turn ambition into action. The earlier you start, the smoother the journey.