What is SBTi - Science-Based Targets Initiative

Complete Guide to the Science Based Targets initiative (SBTi): Emissions Standards for a Sustainable Future

Climate change has become a global challenge requiring concrete commitments from various stakeholders. The business sector, as one of the largest contributors to greenhouse gas emissions, is expected to play an active role in mitigation efforts. Without clear and science-based standards, companies risk setting ambitious targets that are unmeasurable.

The Science Based Targets initiative (SBTi) was created to address this need. This initiative integrates the latest climate research with business practices, enabling organizations to set credible emissions reduction targets aligned with the global temperature increase limit of 1.5–2 °C as agreed in the Paris Agreement.

What is the Science Based Targets initiative (SBTi)?

The Science Based Targets initiative, abbreviated as SBTi, is a collaboration between CDP, UN Global Compact, World Resources Institute (WRI), and WWF. Since its launch in 2015, SBTi has helped more than 1,000 companies worldwide adopt scientific methodologies as a basis for setting climate mitigation targets.

As a global standard, SBTi provides a five-step framework guiding organizations from commitment to emissions reporting. Its goal is to encourage decarbonization across all industrial sectors, reduce dependence on fossil fuels, and accelerate the transition to a low-carbon economy.

Why is SBTi Important for Companies?

Many companies now realize that climate action is not just about compliance but also a strategic opportunity. Science-based targets help companies remain relevant in an increasingly sustainability-driven global business landscape. Commitment to SBTi also signals a company's confidence in facing the future.

Key reasons why SBTi is important include:

• Credibility and Trust: In an era of transparency, investors and consumers increasingly demand tangible proof of climate commitment.
• Regulatory Pressure: As environmental regulations tighten globally, companies with science-based targets are better prepared to adapt.
• Cost Efficiency: Energy efficiency programs and technological innovation often contribute to long-term operational savings.
• Competitive Advantage: Brands active in climate action enjoy higher appeal and stronger reputations in both local and international markets.

SBTi Target Categories

To support diverse companies with different structures and emissions, SBTi divides its target-setting approach into several categories. Each category is designed to drive systemic and comprehensive action, from operations to the entire supply chain.

The target categories include:

1. Near-term Targets: Companies must set short-term emissions reduction targets (typically 5–10 years) to cut emissions in half by 2030. These targets include Scope 1, Scope 2, and Scope 3 (if relevant).
2. Long-term Targets: Companies must cut at least 90% of total emissions (Scope 1, 2, and 3) by no later than 2050. This is a prerequisite to achieving net-zero status.
3. Neutralization of Residual Emissions: Once long-term targets are achieved, residual emissions that cannot be eliminated must be offset through permanent removals, such as carbon capture technologies or ecosystem restoration.
4. Beyond Value Chain Mitigation (BVCM): In addition to reducing emissions within their value chain, companies are encouraged to invest in emissions reduction and removal beyond their own operations as a supplementary contribution to global climate action.

This approach ensures companies address both direct emissions and also encourage suppliers and customers to take action.

Steps to Implement SBTi

Many companies find implementing SBTi complex at first. However, SBTi has designed a clear and systematic five-step process to guide companies. Each step provides concrete direction, from initial commitment to reporting and communication.

The steps include:

1. Commit: Companies register and sign a commitment letter to set reduction targets with SBTi.
2. Develop: Companies design their targets using SBTi methods, including calculations and reduction projections.
3. Submit: Targets are submitted to SBTi for validation.
4. Communicate: Once validated, companies publish their targets and mitigation plans.
5. Disclose: Companies report regularly on performance and progress toward emissions reduction targets.

Each step is supported by technical guidance and tools, including sector-specific guidance and emissions calculators.

Challenges and Criticisms of SBTi

While SBTi offers a solid framework, implementation is not always easy, especially for companies just beginning their decarbonization journey. Common challenges include:

• Scope 3 Complexity: Calculating value chain emissions often requires data that is difficult to access.
• Time-consuming Validation: After targets are submitted, the approval process can take 1–3 months depending on the target type, document completeness, and company responsiveness to analyst inquiries.
• Offsetting: Some parties believe that relying on carbon offsets can undermine true emissions reduction efforts. When offsets are treated as the primary solution, companies risk avoiding direct decarbonization responsibilities and may create the illusion of "carbon neutrality" without real operational change.

Companies must prepare cross-functional teams and develop data management systems to overcome these obstacles.

The Role of Technology in Supporting SBTi

As regulations and stakeholder expectations around climate action increase, many companies face challenges in managing emissions data, setting targets, and meeting reporting standards. This is where technology plays a crucial role.

With advancements in digital systems and automation, there are now various platforms available to help companies implement science-based emissions targets (SBTi) more efficiently and accurately. One such platform specifically designed for this need is CarbonIQ by Jejakin.

CarbonIQ is a state-of-the-art technology platform designed to help companies plan, track, and report science-based emissions targets. With automated data integration, advanced analytics, and a real-time dashboard, CarbonIQ helps companies:

1. Synchronize energy consumption data, fuel purchases, and logistics activities without excessive manual input.
2. Visualize emissions reduction progress against SBTi targets to support quick decision-making.
3. Model various decarbonization options, such as renewable energy upgrades or process efficiency improvements.
4. Generate reports aligned with GRI and SBTi standards, facilitating ESG reporting compliance.

With CarbonIQ, companies can reduce administrative burden, improve data accuracy, and focus resources on the right mitigation actions.

Conclusion

The Science Based Targets initiative has proven itself as a global standard for credible emissions targets. Implementing SBTi is not just a moral obligation but a long-term business strategy to manage climate risk, attract investors, and create sustainable value.

Platforms like CarbonIQ are accelerating SBTi adoption, helping companies of all sizes implement decarbonization plans more efficiently. For organizations in Indonesia and Southeast Asia, now is the right time to join the global effort to curb temperature rise.

Achieve your sustainability commitment with SBTi guidance and CarbonIQ support.