Climate change is a real-world problem. Hazards like extreme heatwaves, devastating floods, supply chain failures, and rising climate risk leads are expected to drive higher insurance costs in the future. Collectively, these factors pose significant threats to business operations, profitability, and long-term sustainability. The global market is changing rapidly, with investors, customers, and regulators, prioritising organizations that demonstrate strong performance in sustainability and managing ESG risks. The Science Based Targets Initiative (SBTi) helps businesses in developing a sustainable emission reduction roadmap to reduce emissions over time. It is in accordance with the Paris Agreement, which aims to lower global warming to 2°C.

This blog discusses Science Based Target initiative in comprehension while listing a step-by-step guide to implementing Science Based Target initiative to reduce emissions.

What is Science-Based Targets?

Science-Based Targets are emission reduction targets, which are in line with the pattern of decarbonization required to limit global temperature rise to 2 °C which is above pre-industrial levels as set out in the Paris Agreement. It encourages firms to connect their climate goals to the Paris Agreement, which aims to limit global warming to well below 2°C above pre-industrial levels, with an ideal target of 1.5°C.

The Science Based Targets initiative (SBTi) has become the global standard by which companies can conduct climate action based on recent climate science. It was launched in 2015 by CDP, the UN Global Compact, the World Resources Institute (WRI), and the Worldwide Fund for Nature (WWF). Through SBTi’s standardized framework, companies can track their emissions-reduction targets aligned to limit global warming to 1.5°C or well below 2°C above pre-industrial levels. Joining Science Based Target initiative not only helps companies to lower their environmental impact but also to build resilience, improve market brand value, and protect their operations against upcoming regulatory, market, and climate risks.

Main features of SBTis

1. Aligned with Climate Science

All targets that are set by Science Based Target initiative are based on the latest IPCC reports and research papers, with the target to keep the global temperature below 2°C and aim for the safer limit of 1.5°C.

2. Full Coverage: SBTi Expects Companies to Consider

Related Read: Decarbonization of Buildings and Construction for a Net-Zero Future

  • Scope 1: Scope 1 emissions are greenhouse gases that an organization emits from sources it owns or controls directly.
  • Scope 2: Scope 2 emissions are indirect, deriving from an organization’s purchase of electricity, steam, heat, or cooling.
  • Scope 3: Emission from Upstream categories (Category 1 to Category 8) and Downstream Categories (category 9 to Category 15) need to be incorporated (mandatory in case they comprise over 40 percent of total emissions).

3. Time-Bound Commitments: Near-term targets normally cover the next 5–10 years, while long-term net-zero goals often look around 2050 or earlier. Companies can show their steady progress along the way.

4. Net-Zero Commitment: Science Based Target initiative now looks at both short and long-term net-zero plans, making sure companies cut its (90–95%) of their emissions before balancing the rest.

5. Continuous Improvement: As Science Based Target initiative provides a roadmap to companies to meet their near-term and long-term Net Zero, through this roadmap, companies can track their progress and continuously improve to reduce the GHG emissions

Why Science-Based Targets?

Setting science-based targets initiative isn’t just about being seen as environmentally responsible, it is also a smart business move that can boost their growth. By matching their climate goals with the latest science, companies can perform better in the market, cut risks, and find new ways to grow and innovate.

1. Credibility and Transparency: Third-party verification ensured the credibility to confirm SBTi targets to stakeholders and avoid greenwashing claims.

2. Investor Confidence: At present, investors care more than ever about ESG performance, Climate risk Assessment, and aligning an organization with SBTi shows a company is ready for long-term success.

3. Competitive Advantage: Through early adoption and planned GHG reduction, company can project themselves as sustainability leaders, which will attract both talent and customers, which helps companies in long-term growth.

4. Regulatory Preparedness: As climate disclosure rules become stricter (like the EU CSRD and SEC proposals), SBTi already gives companies a clear and reliable guideline to follow.

5. Operational Efficiency: This is because setting targets often reveals ways to save energy and make the supply chain run more smoothly, both of which cut costs.

Who Can Join Science Based Target initiative (SBTi)?

Organizations of different sizes and sectors are invited to participate in the initiative, including:

  1. Big Businesses/Large Corporations
  2. Small and Medium Enterprises
  3. Financial Institutions
  4. High-emission sectors like cement, steel, food, energy, shipping, and aviation.

Related Read: Green Credits for Turning Environmental Actions into Economic Value

As of 2025, 11,324 companies are committed to setting science-based emissions reduction targets according to science-based framework. As of 2025, a total of 8,682 company targets have been validated under the Science Based Targets initiative (SBTi). Additionally, 2,033 companies have formally committed to achieving net-zero targets, while 2,846 companies maintain active emission reduction commitments, all contributing collectively toward limiting global warming in line with the goals of the Paris Agreement.

Steps to Set your Science-Based Targets

1. Commitment (Registration): In the first step, a company fills up the SBTi Commitment Form, selects its target type (Near-Term or Net-Zero), and adds a signed commitment letter before sending it to SBTi. Once the letter gets approved, the company is officially marked committed in their website and has 24 months to set its targets.

2. Development on your Targets: At this stage, the company measures their Scope 1, 2, and 3 greenhouse gas emissions under the guidelines of GHG Protocol. Then they select a base year, e.g., (2015 or later), and defines its boundary through the company structure or by sector.

3. Submit: Companies need to submit the required form and documents, pay the target validation fee, and then the proposals get reviewed by an SBTi expert, who then provides feedback and suggestions on emission reduction roadmap.

4. Communicate: After SBTi approves the emission reduction targets, the company needs to share it on the SBTi Target Dashboard, making sure they’re publicly available within six months.

5. Disclose: Transparency is one of the key aspects in the field of ESG Assessment. It is very important to publish the emissions data to monitor the progress toward targets in their annual disclosures. There are many platforms through which organizations can share this information, like CDP’s Climate Change questionnaire, annual reports, sustainability reports, or traditionally on the company’s website.

Related Read: Importance of Climate Risk Assessment for Today’s Businesses

6. Target Validity & Recalculation: To ensure targets remain accurate and aligned with evolving business conditions, they must be reviewed and updated at least every five years, or earlier if significant organizational changes occur, such as a change in emissions exceeding 5% due to acquisitions, divestments, or structural shifts. Recalculation is also required when there are methodological updates or changes in calculation approaches that may affect the target’s validity.

Conclusion

The Science Based Targets initiative is not only another initiative related to sustainability but a plan for building a business, ready for the future. Companies align their goals with the climate policies not only helping them to cut emissions but also ensuring their strength against market shocks, ESG risk, helping them staying ahead, and having knowledge of new regulations, attracting investors, and finding smarter, more efficient ways to operate.

Whether you’re a global or local company, Science Based Target initiative offers a clear, structured roadmap to reach net-zero and stay competitive in the long term and build upon a sustainable future.

Why Choose InCorp Global?

At InCorp Advisory, we help businesses turn climate commitments into measurable, science-aligned action. With proven expertise in Life Cycle Assessment (LCA), GHG accounting, Scope 3 assessments, Net Zero and decarbonization strategy, our team has guided over 200+ companies across sectors like manufacturing, automotive, packaging, and real estate. At InCorp Advisory, we combine strategic insight with hands-on experience to help businesses confidently navigate their sustainability transformation. To learn more about our services, you can write to us at info@incorpadvisory.in or WhatsApp us on (+91) 77380 66622.

Our expertise includes:

  • Proven Expertise in GHG Accounting and SBTi Alignment
  • End-to-End Support — From Commitment to Validation
  • Data-Driven Insights and Scenario Analysis
  • Strong Track Record in Decarbonization and Net-Zero Strategy
  • Transparent Reporting and Assurance Support
  • Sector-Wise Customization

Authored by:
Shreyash Khadse | ESG

FAQs

1. Why should companies set science-based targets?

Setting science-based targets demonstrates a company’s commitment to climate action, enhances investor and stakeholder confidence, and helps future-proof business operations against regulatory and physical climate risks. It also positions the company as a sustainability leader in its sector.

2. Who can commit to Science Based Target Initiatives?

Any company, regardless of size or sector, can commit to Science Based Target initiatives, including manufacturing, service, financial, and public sector organizations. Recently, Science Based Target initiative also expanded to include financial institutions and Small and Medium-sized Enterprises (SMEs) with simplified processes. 

3. What is the difference between near-term and long-term science-based targets?
  • Near-term targets: Cover 5–10 years and focus on immediate GHG emission reductions aligned with 1.5°C pathways.
  • Long-term targets: Support achieving net-zero by 2050 and ensure that the company decarbonizes deeply before offsetting any residual emissions.
4. What emissions scopes are covered under Science Based Target Initiative (SBTi)?

Science Based Target initiative requires companies to account for:

  • Scope 1: Direct GHG emissions from owned or controlled sources.
  • Scope 2: Indirect GHG emissions from purchased electricity, steam, heating, and cooling.
  • Scope 3: All other GHG indirect emissions in the value chain (both upstream and downstream).
    For many sectors, Scope 3 often represents most total emissions and must be included if it accounts for 40% or more of total GHG emissions.
5. How does SBTi relate to Net-Zero targets?

The SBTi’s Corporate Net-Zero Standard provides a science-based framework for companies to reach net-zero emissions by 2050. It emphasizes deep emission cuts across all scopes, followed by neutralizing any remaining residual emissions. 

6. Can SBTi targets be revised or updated?

Yes. Companies are expected to review and, if necessary, update their targets every 5 years to align with the latest climate science or operational changes. 

7. What resources are available to help develop SBTi targets?

Science Based Target initiative (SBTi) provides sector-specific guidance, calculation tools, and criteria documents. Many consultancies and sustainability experts also offer GHG inventories, scenario analysis, and target modelling support to help companies prepare robust submissions.