Climate
SBTi Approved Targets
The Science Based Targets initiative (SBTi), founded by CDP, the United Nations Global Compact, World Resources Institute, and the WWF, drives ambitious climate action in the private sector. Its mission is to enable organizations to set emissions reduction targets in line with the latest climate science. It aligns corporate action with global efforts to limit warming to 1.5°C above pre-industrial levels, as per the 2015 Paris Agreement.
Proof Point Level
Product BusinessStandard Summary
- Companies must have an approved 1.5°C aligned near-term target, as well as an approved net-zero target aligned with SBTi’s Net-Zero Standard (i.e. by 2050 at the latest)
- Targets must align with the level of decarbonization required to keep global temperature increase below 1.5°C compared to pre-industrial temperatures, in line with the Paris Agreement
- Companies must set targets for direct emissions (Scope 1) and indirect emissions from purchased energy (Scope 2). These targets should aim for absolute emission reduction rather than intensity-based targets
- If Scope 3 emissions (indirect emissions in the value chain) cover more than 40% of total emissions, companies are also required to set Scope 3 targets
- Companies identified as SMEs by SBTi may set targets through the streamlined SBTi SME validation route
- Targets must cover a minimum of 5 years and a maximum of 15 years from the date of submission to the SBTi
- Companies are expected to publicly report on their greenhouse gas emissions and track progress against their targets annually
- Companies must review and if necessary, update their targets at least every five years to align with current climate science
- The SBTi encourages companies to set ambitious targets and continuously improve their climate actions to reach net-zero emissions by 2050 at the latest
Additional Resources
SBTi Corporate Net Zero Standard
