In the current climate context, companies are required to move beyond voluntary commitments and implement measurable actions, guided by science and regulatory expectations. Science-Based Targets (SBTs) provide a framework for companies to reduce emissions in a measurable and verifiable manner, aligned with the 1.5 °C pathway. This insight outlines how the SBTi standards operate, their relationship with the CSRD, and the strategic advantages of adopting them.
Science-based targets: definition and types according to the SBTi
Science-based targets (SBTs) are corporate goals for reducing greenhouse gas (GHG) emissions, aligned with climate science. They are based on sectoral allocation models and global mitigation pathways designed to ensure that global warming is limited to no more than 1.5 °C. The SBTi (Science Based Targets initiative) is the main entity validating these targets, supported by organizations such as CDP, PACT, WRI and WWF.
Under the current framework, targets are classified as:
Near-term targets: absolute emission reductions to be achieved within 5 to 10 years from validation, covering all three scopes where applicable.
Net-zero targets: at least a 90% reduction in emissions before 2050, with only residual emissions neutralized through removal technologies.
Since its creation in 2015, more than 11,000 companies worldwide have set or committed to validated targets, ranging from large corporations to SMEs across multiple sectors.
SBTi standards and methodologies: near-term, net-zero and sectoral guidance
The SBTi provides standards and technical criteria to guide companies in defining robust climate targets. All SBTi methodological approaches are aligned with the international GHG Protocol standard, which establishes how to account for and report greenhouse gas emissions across the three scopes. Key resources include:
Corporate near-term criteria: a set of technical requirements to define and validate short-term emission reduction targets (5–10 years), aligned with a 1.5 °C pathway and fully consistent with the methodologies and principles of the GHG Protocol. This includes requirements by scope, a minimum annual reduction rate, and minimum coverage thresholds.
Corporate net-zero standard: the first global standard for corporate climate neutrality, requiring at least a 90% reduction in emissions before 2050 and neutralizing only residual emissions through durable carbon removal solutions.
Sector-specific guidance: developed for industries with particular decarbonization pathways, such as transport, energy, cement, agriculture, financial products, forestry, power generation, retail, food and beverages, construction, information technology, among others.
Supplier engagement guide: guidance to define and implement supplier engagement targets for scope 3 decarbonization. It provides specific criteria to set supplier engagement goals, along with monitoring tools and sectoral best practices.
BVCM (beyond value chain mitigation): a complementary approach encouraging voluntary actions outside the value chain, such as investments in global climate solutions, without replacing the required internal reductions.
The meaning of net-zero according to the SBTi
Achieving climate neutrality under the SBTi standard requires a rigorous, science-based approach. The concept of net-zero is not limited to balancing emissions with offsets, but prioritizes the effective elimination of emissions at the source.
To achieve this, organizations must:
Reduce at least 90–95% of absolute emissions across all scopes (1, 2 and 3) through direct actions within their value chain.
Neutralize only residual emissions—those that are technically or economically impossible to eliminate—using durable carbon removal solutions such as bioenergy with carbon capture and storage (BECCS), mineralization, or direct air carbon capture and storage (DACCS).
The use of traditional carbon credits is not permitted to reach net-zero targets. The SBTi framework requires real and profound transformations in processes, products, logistics and energy supply. Only in the final stage of neutralization is the limited use of validated removals allowed, thereby ensuring a corporate trajectory consistent with the 1.5 °C pathway.
How the SBTi process works
The SBTi sets out a structured and regularly updated process for organizations to define, validate and maintain their climate targets. This process can begin either with a formal commitment or directly by setting targets, and generally follows these steps:
Public commitment (optional)
A company may submit a “commitment letter” to the SBTi declaring its intention to set science-aligned targets. This commitment gives the company “Committed” status on official platforms. Not all organizations choose this step; some proceed directly to developing targets.Target development
The organization prepares a complete greenhouse gas inventory (carbon footprint), including scopes 1 and 2 and, where relevant, scope 3. Based on this, it defines the baseline and applies SBTi methodologies, sectoral guidance and updated criteria to establish quantitative targets.Submission for validation
The organization submits its targets to SBTi Services through the required forms within the official validation system. If it has previously made a commitment, this must be done within a maximum of 24 months from the commitment date.Assessment and approval
The initiative’s technical team evaluates the targets, checking that ambition levels, methodologies, emission scopes and other requirements are met. If successful, the targets are validated (“targets set”) and published on the SBTi dashboard.Monitoring and periodic updates
Once validated, targets must be monitored annually in terms of emissions and progress. In addition, if significant changes occur—or after a defined period (e.g. every 5 years under certain standards)—targets may need to be reviewed or revalidated to ensure continued alignment with the latest science and SBTi requirements.
SBTi and CSRD: how to comply with the european climate regulation
The Corporate Sustainability Reporting Directive (CSRD) requires thousands of companies in the EU to:
Publish climate plans with targets aligned with the 1.5 °C pathway.
Set reduction milestones for 2030 and 2050.
Report scope 1, 2 and 3 emissions if material.
Disclose progress annually under the European Sustainability Reporting Standards (ESRS).
Science-based targets provide a technical framework to meet these requirements. The SBTi (Science Based Targets initiative) is currently the most widely adopted reference for validating such targets, although companies must ensure that the chosen methodology fully complies with legal requirements. In addition, ESRS E1 is grounded in the principles of the GHG Protocol, reinforcing the compatibility between emissions accounting and climate targets validated through the SBTi.
Is it mandatory to validate targets with the SBTi to comply with the CSRD?
No. The CSRD and ESRS E1 require climate plans and targets aligned with the 1.5 °C pathway, but they do not mandate validation through the SBTi. It is legally acceptable to define science-based targets internally or by using other methodologies, provided their consistency with applicable scientific criteria is properly justified.
There are several ways to demonstrate that emission reduction targets are compatible with the 1.5 °C pathway: from using IPCC or IEA trajectories—which require technical interpretation for business application—to sectoral benchmarks or external validations. Nevertheless, the SBTi is the most internationally recognized initiative and the one that offers the clearest and most standardized criteria. Its key added value lies in translating those scientific trajectories into sector-specific methodologies, enabling companies to turn climate science into concrete, comparable targets with greater market credibility.
How to move forward?
Defining science-based targets is not only a matter of reputation, but a core element of climate and business strategy. At Baisma, we support organizations in emissions analysis, reduction pathway modeling, and the setting of targets aligned with robust technical frameworks such as the SBTi, whether for the purpose of obtaining formal validation or as an internal technical reference to define targets consistent with the 1.5 °C pathway.
Interested in aligning your climate strategy with the 1.5 °C pathway? Let’s talk.
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