“SBTi-aligned” gets used a lot in corporate sustainability reporting — but what does it actually commit a company to?
What SBTi Is
The Science Based Targets initiative (SBTi) is an independent body that validates whether a company’s emissions reduction targets are actually consistent with what climate science says is needed to limit global warming — rather than being an arbitrary number a company picked for good PR.
What “Science-Based” Actually Means
A target is “science-based” if it aligns with the reductions needed to keep global warming well below 2°C, ideally 1.5°C, in line with the Paris Agreement. SBTi provides sector-specific methodologies so that a target reflects what’s actually achievable and necessary for that industry — an airline and a bank don’t face the same decarbonisation pathway.
The Validation Process
A company sets a target, submits it to SBTi with supporting data, and SBTi independently assesses whether it meets the required ambition threshold. Only once validated can a company describe its target as “SBTi-approved” — this isn’t a self-declared label.
Near-Term vs Net Zero Targets
SBTi distinguishes between:
- Near-term targets — typically 5–10 year reduction commitments across Scope 1, 2, and increasingly Scope 3
- Net-zero targets — a longer-term commitment (usually by 2050) to reduce emissions by at least 90% and neutralise any remainder through permanent carbon removal, not offsetting
Why It Matters
SBTi validation is increasingly what separates a credible climate commitment from greenwashing. Investors, regulators, and increasingly customers use SBTi status as a shorthand for “this target has been independently checked,” rather than taking a company’s own claims at face value.